BlackRock halts work on Ukraine reconstruction fund amid Trump uncertainty

US-based BlackRock, the world’s largest investment company, has reportedly halted its efforts to find investors for a planned reconstruction fund for Ukraine.

According to a report by Bloomberg that cited sources familiar with the matter, the decision is driven by uncertainties surrounding US President Donald Trump’s position on Ukraine.

The fund was scheduled to be unveiled at a conference on Ukraine’s reconstruction on July 10-11, an event attended by Italian Prime Minister Giorgia Meloni and Ukrainian President Volodymyr Zelenskyy. Sources indicated that the initiative was close to securing initial support from entities linked to the governments of Germany, Italy, and Poland.

However, with the possibility of Trump returning to the White House in January, BlackRock has decided to temporarily suspend its discussions with institutional investors, citing uncertainty about future support for Ukraine.

Alternative plan from France

Bloomberg has also learned that France is now developing an alternative plan, which includes creating a new fund to replace the initiative that BlackRock has suspended. The effectiveness of this new plan without US participation, however, remains a significant question.

A BlackRock representative stated that the company completed its pro bono advisory work for the Ukraine project in 2024 and currently has “no active commitments” to the Ukrainian government.

“The only discussions that influence BlackRock’s decisions are those the firm has with its clients,” the representative emphasized.

The fund’s $15 billion target

BlackRock Vice Chairman Philipp Hildebrand, who was previously involved in the negotiations, had announced plans to attract at least $500 million from governments, international development banks, and other public donors, along with approximately $2 billion from private investors.

According to Hildebrand, uniting investors under a single consortium would have enabled the direction of at least $15 billion in equity and debt investments toward Ukraine’s reconstruction.

The World Bank estimates that the total cost for Ukraine’s post-war reconstruction exceeds €500 billion. Rebuilding the country’s port infrastructure alone is projected to require at least €1 billion.