A new US-Ukraine Reconstruction Investment Fund has been established to drive economic growth. The fund will be jointly managed, with no majority vote for either party.
Washington and Kyiv on Wednesday signed an agreement granting the US access to Ukraine’s vast rare earth mineral resources, a final touch to a deal months in the making which could lead to continued military support to Kyiv amid concerns that US President Donald Trump might scale back support in ongoing peace negotiations with Russia.
First Deputy Prime Minister of Ukraine Yulia Svyrydenko said on Wednesday that she had signed an agreement on behalf of her government, creating a US-Ukraine Reconstruction Investment Fund. The agreement aims to create an environment that promotes further economic growth for both countries.
“Together with the United States, we are creating the fund that will attract global investment into our country,” Svyrydenko wrote in a post on X.
The deal has many variables, which Svyrydenko detailed in a lengthy thread of posts.
All resources in both land and sea in what’s defined as Ukrainian territory will remain under Ukrainian control and ownership.
Kyiv also reserves the right to determine what and where to extract, stressing that the subsoil remains state property, a term enshrined in the deal.
The fund is to be created on a 50-50 basis and will be managed jointly by both Ukraine and the United States. Neither party is to have a majority vote, reflecting a true equal partnership based on mutual gain, cooperation and respect.
The agreement will not impose any changes in the classification of companies’ legal registrations. State-owned companies like Ukrnafta and Energoatom are to remain state-owned.
The agreement makes no mention of any Ukrainian financial obligations to the United States.
It comes after US President Donald Trump dropped his insistence that the deal reimburse Washington of billions of dollars of aid already delivered since the start of Russia’s full-scale invasion of Ukraine in February 2022.
Ukraine’s Prime Minister Denys Shmyhal hailed the achievement, calling it a success as Trump had earlier demanded the equivalent of $500 billion (€442 billion) from the rare earths revenues as repayment.
The implementation of the agreement will allow both countries to boost their economic potential through joint cooperation.
No interference with EU integration
The agreement complies with the Constitution of Ukraine and does not change the European integration course. The document is consistent with national legislation and does not contradict any of Ukraine’s international obligations.
Kyiv is hopeful that the agreement will signal to other countries that Ukraine is a reliable global player and highlight its intent to cooperate with partners and pursue long-term deals for decades to come.
50% of funds from new licenses for projects in the field of critical materials and oil and gas, which will be transferred to the budget after the creation of the fund.
Income from projects already under way or budgeted revenues is not included in the fund.
The agreement also obliges Washington to help attract more investment and technology for Kyiv. The fund will be directly supported by the US government through its International Development Finance Corporation (DFC).
The DFC will help bring in new investment and technology from companies and funds in both the US and EU, and other countries that support Kyiv’s fight against Moscow.
Technology was underscored as an important component of the deal, as Ukraine deems it important to secure not just capital, but also innovation.
Fund’s generated income not to be taxed
The Fund’s income and contributions will not be taxed in either the US or Ukraine, so that investments yield the greatest possible results for both parties.
Both countries will be equally contributing to the fund. Svyrydenko says that, in addition to direct funds, Washington can choose to provide further support in the form of weapons, such as air defence systems.
Kyiv will also do its part and reciprocate beyond the agreed-upon 50% of revenues generated from new rents and licenses, if deemed necessary.
The joint fund will then invest the capital in mineral and natural resource projects, as well as other related infrastructure.
The specific investment projects are to be decided on jointly by Ukraine and the US. The deal, however, stipulates that such investments are to be made exclusively in Ukraine.
US Treasury Secretary Scott Bessent said in a video posted to X that “this partnership allows the United States to invest alongside Ukraine, to unlock Ukraine’s growth assets, mobilise American talent, capital and governance standards that will improve Ukraine’s investment climate and accelerate Ukraine’s economic recovery.”
Both countries say the agreement is designed to be a long-term joint investment, planned to last for decades. / euronews / Additional sources • AP
