$50 Million Fund to Support Ukraine’s Economic Recovery Amid Ongoing War

Baku, Azerbaijan — The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) have pledged a combined $50 million to the newly launched Rebuild Ukraine Fund, aiming to bolster the country’s economic recovery amid the ongoing conflict. This private equity fund, managed by Ukrainian firm Dragon Capital, will focus on providing long-term financing to small and medium-sized enterprises (SMEs) and mid-cap companies.

The fund, which targets a total capital deployment of $250 million, seeks to support sectors critical to Ukraine’s resilience, including consumer services, healthcare, financial services, and agriculture. With each institution contributing $25 million (€21.8 million), this investment marks an important milestone, enabling the fund to reach its first closing and sending a robust signal of confidence to investors.

EBRD Managing Director for Ukraine and Moldova, Arvid Tuerkner, emphasized the importance of this partnership during a signing ceremony at the Rebuild Ukraine conference in Warsaw on November 13-14. He stated, “The fund will provide vital capital to SMEs and mid-caps and reinforce the foundations for Ukraine’s economic recovery.”

Alfonso García Mora, IFC’s Vice President for Europe, noted that many Ukrainian companies, particularly smaller ones, face difficulties accessing equity financing. “With support from the EU and France, IFC’s investment will boost essential sectors like agriculture, construction, and technology, helping businesses grow and drive recovery,” he remarked.

To reduce investment risks, part of the IFC’s equity investment will be secured by guarantees from the European Commission and the French government. Tomas Fiala, Founder of Dragon Capital, praised the support from EBRD and IFC, stating, “Their investment sends a strong message of confidence in Ukraine’s private sector and its future.”

Dragon Capital, founded in 2000, boasts over two decades of experience in managing investments and supporting Ukraine’s key industries. As the largest institutional investor in Ukraine, the EBRD has committed more than €8.5 billion to support the country’s economy since the onset of Russia’s full-scale invasion in 2022.