The US and Ukraine are looking for an administrator for the Reconstruction Fund
16 July 2025 05:12
The joint initiative of the U.S. and Ukrainian governments to launch the U.S.-Ukraine Reconstruction Investment Fund is moving to the implementation stage. The U.S. International Development Finance Corporation (DFC) has published a Request for Information (RFI) to select a company that will administer the fund and ensure its technical functioning. This was reported by "Komersant Ukrainian" with reference to the Ministry of Economy.
The Fund’s administrator will take care of technical operations: accounting, documentation, transaction processing and regulatory compliance, while all investment decisions will be made exclusively by the Fund’s Governing Board with an equal number of representatives from both countries.
The publication of the RFI is the first step in the selection of a qualified partner and does not in itself launch a formal tender.
Qualified Ukrainian companies can also submit their proposals to the DFC. The final selection of the service provider will be made unanimously by the DFC’s Governing Board, which will include three representatives from the United States and Ukraine.
DFC invites qualified companies to submit information about their experience in:
- Accounting and reporting for investment funds;
- Ensuring regulatory compliance, including customer due diligence and anti-money laundering procedures;
- Investment transaction processing and asset management;
- Implementation of modern technological platforms for fund administration, etc.
According to the published RFI, the responsibilities of the investment fund administration service provider will include:
- Provision of services – fund accounting, management of relations with limited partners (LPs), transaction processing, regulatory compliance and cash management.
- Technology and security – utilizing a robust technology platform with strong security features, scalability and reporting capabilities to support fund operations.
- Team expertise – hiring qualified team members with experience in private equity fund administration.
- Compliance and risk management – implementing procedures to ensure regulatory compliance, including anti-money laundering and customer due diligence protocols, as well as financial crime risk management.
- Feestructure and timelines – development of a detailed fee structure and terms for administrator services, as well as a timeline with clear milestones.
The U.S.-Ukraine Reconstruction Investment Fund should provide financing for projects in strategically important sectors of the Ukrainian economy, including mining, hydrocarbon production, and infrastructure. The Fund will contribute to the long-term economic growth and strengthening of Ukraine.
The Fund’s legal status, governance model, sources and procedures for contributions from both countries, rules for reinvestment of profits, transparent audit procedures, and security safeguards are set forth in a commercial agreement between the United States and Ukraine, the main terms of which are published by agreement of the parties.
Key parameters of the commercial agreement:
- Structure of the partnership. The Fund is established as a perpetual partnership between DFC (US side) and the PPP Agency (Ukrainian side); the Governing Board consists of three managers from each country, and activities are coordinated by four committees (investment search, investment, administrative and audit).
- Capital contributions. The initial capital is formed by 50% of Ukraine’s royalties from new and dormant special permits for hydrocarbon production, as well as the US contribution through DFC and the Ukrainian initial contribution; in addition, the current US military assistance will be credited to the DFC account as a conditional capital contribution, and either party may make further financial contributions to the capital account.
- Revenues. All profits for the first ten years will be reinvested in Ukrainian projects (mining, energy, oil and gas, logistics), and all revenues generated from Ukrainian licenses and royalties must be reinvested before they can be distributed to the limited partners; in all cases, distributions to partners may be permitted only after 2035.
- DFC rights – DFC receives priority, but not monopoly, access: the right of first consideration of investments and off-takes and the ability to attract co-investors from the United States, while projects can work in parallel with other investors.
- Audit – transparency is ensured by the annual audit of the SASU; the audit committee can engage international experts and verify the correctness of the contributions.
Interested companies may send their responses by July 27, 2025, 12:00 p.m. EST to [email protected] with the subject line: “RFI response – Investment fund administration – [Company name]”.
The full text of the RFI with detailed requirements and submission procedure is attached.
