Financing Ukraine’s reconstruction: How Luxembourg funds can mobilise capital with EU and DFI programmes

Ukraine’s recovery is entering a decisive phase, with European Commission programs/initiatives and development finance institutions deploying capital to contribute to the rebuilding of the country’s infrastructure, economy, and institutions. The focus is on resilience, sustainability, and long-term impact, mobilising both public and private capital to support Ukraine’s future.

Luxembourg, as a leading jurisdiction for investment funds structuring and cross-border financing, is playing a pivotal role in enabling this capital flow. With its robust legal framework, flexible fund regimes, and proximity to European institutions, Luxembourg offers a strategic platform for structuring vehicles aligned with the goals of Ukraine’s reconstruction.

Among the flagship initiatives, the EU’s Ukraine Facility (2024-2027) combines grants, loans, and guarantees under a dedicated investment framework designed to catalyse private investment at scale. In July 2025, the EU and its implementing partners expanded financing for energy, transport, and business resilience, with new approvals under the Ukraine Investment Framework (UIF).

Complementing these efforts, initiatives such as Rebuilding Ukraine Inc. and the Ukrainian Sustainable Fund (UASIF) bring together international professionals, financing institutions, and manufacturers under a unified umbrella to accelerate green and inclusive recovery. DFIs are actively crowding-in private capital, offering guarantees, insurance, and co-financing mechanisms that materially improve risk-return profiles for institutional investors.

DLA Piper in Luxembourg is uniquely positioned to support sponsors, fund managers, and investors in navigating the legal and regulatory frameworks underpinning these initiatives.

Our team advises on:

• Structuring investment funds under Luxembourg law, including RAIFs, SIFs, and other vehicles suited to blended finance and DFIs participation.
• Designing compliant financing frameworks aligned with EU instruments such as the Ukraine Facility and guarantees provided by the European Commission and DFIs.
• Cross-border legal coordination, ensuring alignment international best practices.
• Tax and regulatory guidance, facilitating efficient capital deployment and risk mitigation across jurisdictions.
• Governance and compliance, implementing robust fund governance, impact-measurement frameworks aligned with DFIs standards and EU reporting expectations.

As part of DLA Piper’s global platform, our Luxembourg office combines deep local expertise with international reach, enabling clients to structure scalable, legally sound, and impact-driven investment solutions for Ukraine’s recovery.

The window is open for Luxembourg-domiciled funds to play a meaningful role in rebuilding Ukraine. We stand ready to help sponsors and investors convert these frameworks into actionable portfolios that deliver both financial and societal returns.