BlackRock, one of the world’s largest investment firms, has reportedly abandoned its plans to raise $15 billion for a Ukraine reconstruction fund, citing a lack of investor interest and heightened political uncertainty since Donald Trump’s return to the White House. The fund, which was set to be unveiled at a recovery conference in Rome next week, was previously close to securing backing from major European allies like Germany, Italy, and Poland. BlackRock decided to pause the initiative in early 2025, attributing the change to the evolving US stance on Ukraine, which has shifted under the new administration. Trump’s long-standing efforts to broker a peace deal and reduce NATO’s military involvement in Ukraine have reportedly complicated the fund’s prospects. The Trump administration’s absence from the fund’s backers in December further underscored the shift in priorities.
The Ukraine Reconstruction Fund, initially announced in late 2024, was envisioned as a multi-billion dollar initiative to support Ukraine’s infrastructure, energy systems, and economic recovery following years of conflict with Russia. BlackRock’s vice chairman, Philipp Hildebrand, previously indicated the fund was on track to secure at least $2.5 billion in private and public financing by March of 2025. However, with the current administration now prioritizing a different approach to the war, the fund’s future appears uncertain. The move is also seen as part of broader concerns over the long-term viability of Western military and financial support for Ukraine, especially given the economic strain on many European allies and the increasing focus on domestic issues in the United States.
BlackRock, which oversees over $11.6 trillion in assets, has a significant stake in defense contractors such as Lockheed Martin, Raytheon, and Northrop Grumman. These companies have been heavily involved in supplying arms and military equipment to Ukraine, contributing to the ongoing conflict. Moscow has consistently criticized the flow of Western arms to Kyiv, arguing that it entangles NATO countries in the conflict. The recent freeze on US military aid to Ukraine, announced by Washington, has been met with both domestic and international skepticism, as it reflects a strategic recalibration of US priorities under the Trump administration. This shift is expected to have broader implications for the reconstruction efforts in Ukraine and the global dynamics of the Russia-Ukraine war.