U.S. and World Bank back Ukraine reconstruction fund with risk insurance

The U.S. International Development Finance Corporation and the World Bank’s Multilateral Investment Guarantee Agency agreed Thursday to create a political risk insurance framework for a U.S.-Ukraine reconstruction investment fund.

The agreement was signed on the sidelines of the Ukraine Recovery Conference in Gdansk, Poland, and builds on the U.S.-Ukraine Reconstruction Investment Fund established on April 30, 2025 under the bilateral minerals partnership. The fund is designed to support reconstruction and strategic investment and will prioritize critical minerals, energy, transport and logistics, information and communications technology and emerging technology.

The new insurance protects businesses, lenders and investors against losses tied to adverse government action, instability or geopolitical shock. In Ukraine, private insurers have largely withdrawn because of war-related risk, leaving a financing gap that public institutions are trying to fill before a peace settlement is reached.

Conor Coleman, DFC’s chief of staff, said the partnership would help the agency mobilize additional private investment vehicles alongside joint projects with the Ukrainian government and give investors the “confidence to pursue high-impact opportunities in Ukraine.” Ed Mountfield, MIGA’s vice president and chief financial officer, said guarantees are needed to unlock private capital and strengthen Ukraine’s business environment.

MIGA says Ukraine’s gross domestic product fell 29% in 2022, real GDP in 2025 was still about 20% below pre-conflict levels, and 5.9 million Ukrainian refugees were living worldwide as of February 2026.

The deal was witnessed by Ukraine Economy Minister Oleksiy Sobolev, World Bank President Ajay Banga and U.S. Treasury Undersecretary Jonathan Greenstein. Sobolev said the new mechanism was not limited to fund-backed projects and could also cover other projects in Ukraine, broadening its reach beyond the reconstruction fund itself.

Approval of a second project under the fund is expected in the coming weeks. MIGA has also been using its Support to Ukraine’s Reconstruction and Economy Trust Fund and partnerships such as with the European Bank for Reconstruction and Development to deploy guarantees for trade, liquidity and real-sector investment.