Ukraine, France may establish new recovery support fund
Ukraine's Ministry of Economy said this in a statement following a bilateral meeting between Ukraine's Minister of Economy, Environment, and Agriculture, Oleksii Sobolev, and Pierre Heilbronn, Special Envoy of the President of France for Ukraine's Relief and Reconstruction, according to Ukrinform.
According to Sobolev, the fund would provide blended financing for reconstruction projects, involving private capital to broaden investment opportunities and boost funding for recovery initiatives.
The parties also discussed drafting a new intergovernmental agreement, expected to be signed by the end of 2025. The document will focus on strategic sectors and emphasize industrial cooperation between French and Ukrainian companies, aligning with EU standards.
A significant part of the talks centered on cooperation with France's Alstom regarding the delivery of 55 locomotives worth EUR 490 million, financed by the World Bank and the EBRD. Additional financing of EUR 300 million through a concessional loan from France is being considered for the purchase of 30 more locomotives. The agreement is expected to be signed in August during an economic summit involving the presidents of Ukraine and France.
In the agricultural sector, the discussions focused on developing Ukraine's processing industry and an initiative to create grain hubs in the Middle East — specifically in Egypt — for the secure storage and distribution of Ukrainian grain.
Additionally, both sides confirmed that a meeting of the Ukrainian-French Economic Commission will be held in Kyiv in November 2025, and agreed to appoint a chairperson for the commission.
In July, the Cabinet of Ministers of Ukraine approved the statute for the newly restructured Ministry of Economy, Environment, and Agriculture, which now consolidates the responsibilities previously held by the Ministry of Economy, the Ministry of Agrarian Policy, and the Ministry of Environment.
Photo: Ministry of Economy
