The European Commission has announced the creation of a new European Flagship Fund for the Reconstruction of Ukraine, aiming to attract large-scale private investment to help rebuild the war-torn country.
The European Commission unveiled plans for a new European Flagship Fund for the Reconstruction of Ukraine, Commission President Ursula von der Leyen announced Thursday at the Ukraine Recovery Conference in Rome. The fund is described as “the largest equity fund globally to support reconstruction,” designed to work alongside the private sector to boost investment in energy, transport, critical raw materials, and dual-use industries.
“We are taking a stake in Ukraine’s future by leveraging public money to bring large-scale private sector investments and help the rebuilding of the country,” von der Leyen said.
Von der Leyen named Italy, Germany, France, Poland, and the European Investment Bank as contributors, and expressed confidence that others would join. She did not specify a fundraising target for the initiative. Ukrainian Finance Minister Serhii Marchenko said Wednesday that Ukraine needs at least $40 billion in external financing for 2026, as most of its state budget is currently devoted to defense. “Ukraine needs regular and predictable external support to maintain the financial stability it has achieved with its partners since 2022. This also lays the foundation for the country’s successful reconstruction,” Marchenko said.
The devastation from Russia’s ongoing full-scale invasion continues to mount, with Ukrainian towns and cities suffering nightly bombardments. In April, the Ukrainian government signed a deal with the Trump administration to establish an American-Ukrainian Reconstruction Investment Fund, drawing on Ukraine’s natural resources development projects.
While in Rome, von der Leyen highlighted that Europe has become the largest donor to Ukraine, providing €165 billion in support and planning to continue assistance through at least 2028. “This year alone, we will cover 84 percent of the external financing needed. As part of this support, I can announce €1 billion payment in macro financial support. I can also announce a payment of more than €3 billion from the Ukraine facility,” she said.
Ukraine’s economy ministry estimates the country will need $524 billion (around €450 billion) for reconstruction over the next decade. Ukrainian President Volodymyr Zelenskyy noted that investments in reconstruction are beneficial not just for Ukraine but also for Europe, as Kyiv can share its robust and cost-effective military technologies to strengthen the EU against Russian aggression.
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