BlackRock Reportedly Dropped Ukraine Rebuild Fund After Trump’s Return To The White House

BlackRock (BLK) reportedly pulled back from its plan to search for investors to back a multibillion-dollar Ukraine recovery fund earlier this year, following a decline in U.S. support for the war-torn country after President Donald Trump’s election victory.

Bloomberg News reported, citing sources familiar with the matter, that the fund was to be unveiled at this week’s Ukraine Recovery Conference in Rome. The fund was also close to gaining support from entities backed by the governments of Germany, Italy, and Poland.

The world’s top asset manager reportedly paused talks with institutional investors in January due to a lack of interest amid doubts over Ukraine’s future. While Trump had pledged an end to the war in Ukraine immediately after swearing in for the second time, his attempts to bring Ukrainian President Volodymyr Zelenskyy and his Russian counterpart, Vladimir Putin, to the negotiating table have not yielded much success.

BlackRock vice-chair Philipp Hildebrand had said last year that the Ukraine Development Fund was on course to get at least $500 million from countries, development banks, and other grant providers, as well as $2 billion from private investors. Several independent institutions, including the World Bank, have said that the cost of rebuilding Ukraine could exceed $500 billion.

Retail sentiment on Stocktwits about BlackRock was in the ‘bullish’ territory.

A BlackRock spokesperson told Bloomberg that the company had completed its pro-bono advisory work on the Ukraine Development Fund in 2024 and is currently not engaged in “any active mandate” with the Ukrainian government.

The report added that France is looking to establish an alternative fund to replace the BlackRock initiative. Still, the effectiveness of the plan is in doubt due to concerns over Washington’s backing.

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