BlackRock scraps $15B Ukraine fund as Trump's return fuels US uncertainty - Bloomberg

The American investment firm BlackRock has halted its efforts to secure investors for Ukraine's recovery fund due to growing uncertainty surrounding Donald Trump's return to the presidency, Bloomberg informs.
The United States did not support the initiative, which forced BlackRock to end talks with potential donors.
The US investment giant froze negotiations with institutional donors back in early 2024. The decision was linked to political uncertainty following Donald Trump's election victory in the United States.
The fund was expected to be unveiled at a recovery conference in Rome on July 10–11. It was slated for launch with the involvement of the governments of Germany, Italy, and Poland, which were prepared to provide the initial round of funding.
What was planned
BlackRock, in partnership with the Government of Ukraine and other international partners, had been preparing a recovery fund worth more than $15 billion. Of that total, $2 billion was expected to come from private investors.
Philipp Hildebrand, Vice Chairman of BlackRock, had previously said the project was designed to combine grants, debt instruments, and equity capital.
However, in January, BlackRock decided to halt the process, citing a "lack of interest" — primarily from the United States. Washington did not formally support the initiative, despite Ukraine's expectations.
Trump has repeatedly expressed skepticism about supporting Ukraine and has vowed to end the war through direct talks with Vladimir Putin.
Since taking office, his administration has avoided taking a clear position on financing Ukraine's defense or reconstruction efforts.
That ambiguity has significantly affected the investment climate around Ukraine.
What's next
According to Bloomberg, France is now working on an alternative initiative to support Ukraine’s reconstruction. However, without US involvement or BlackRock's participation, its impact may be limited.
A BlackRock spokesperson confirmed that the company concluded its pro bono advisory work on the Ukrainian fund in 2024 and currently holds no active mandate from the Government of Ukraine.
As reported earlier, in January 2024, Ukraine’s reconstruction bank, being developed with the help of major global investment banks including BlackRock and JPMorgan Chase, was expected to begin operating within the year.
BlackRock had been assisting in talks to secure funding from development banks and donor governments, intending to reduce investment risk for the private sector.
In 2023, Kyiv enlisted BlackRock and JPMorgan to help establish a fund to attract public capital. The idea was to use it as a catalyst for private investment in Ukraine's postwar reconstruction, a process expected to require hundreds of billions of dollars.