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Ukraine Reports Stronger U.S. Backing After Washington Talks as IMF and Reconstruction Plans Advance

The visit underscored a push to tighten Russia sanctions to channel more public and private funding into Ukraine.

Overview

  • After high-level meetings in Washington, Prime Minister Yulia Svyrydenko said Treasury Secretary Scott Bessent was supportive and she pressed the U.S. not to relax Russia sanctions or allow workarounds.
  • Ukraine and U.S. counterparts agreed in principle to expand the U.S.-Ukraine Reconstruction Investment Fund and to set up a co-investment fund to draw private capital despite wartime risk.
  • The reconstruction fund approved its first deal in March and expects a second project in the energy sector this summer, and it has logged more than 200 applications as Kyiv seeks to scale beyond three initial projects.
  • Ukraine said it received a first $8.1 billion IMF tranche in March and expects an IMF staff mission in May under a program approved in February, with the Fund signaling flexibility as war damage strains the economy.
  • Allied support widened as G7 finance chiefs vowed continued aid for Ukraine’s finances and winter energy needs, and Svyrydenko said elections in Hungary could clear an EU €90 billion loan and a new sanctions package.