How US-Ukraine Reconstruction Investment Fund will work

Speaking about the work of the relevant Investment Fund, the official informed that the US is contributing to the Fund, and in addition to direct financial contributions, they may also provide new aid, such as air defense systems for Ukraine.

"Ukraine will contribute 50% of the state budget's revenue from the new rent on new licenses for new sites. Ukraine may also make additional contributions beyond this basic amount if deemed necessary. This is a partnership that spans decades," Svyrydenko explained.

According to her, the Fund will then invest in projects related to the extraction of minerals, oil, and gas, as well as in supporting infrastructure or processing.

"Specific investment projects to which funds will be allocated will be jointly determined by Ukraine and the US," the statement from the head of Ukraine's Ministry of Economy reads.

Svyrydenko emphasized the importance of the fact that the Fund can invest exclusively in Ukraine.

"We expect that for the first 10 years, the profits and revenues of the fund will not be distributed, but can only be invested in Ukraine - either in new projects or reconstruction. These conditions will be discussed further," the official informed.

Svyrydenko also shared that the Ukrainian government has developed a version of the agreement that provides mutually beneficial terms for both countries.

"This is an agreement in which the US highlights its commitment to promoting long-term peace in Ukraine and acknowledges the contribution Ukraine has made to global security by giving up its nuclear arsenal. The agreement is one in which the US affirms its dedication to issues of Ukrainian security, reconstruction, and recovery," she explained.

Signing of the agreement between Ukraine and the US on the creation of the Reconstruction Fund, the minerals deal

On the night of May 1, Ukraine's Minister of Economy, Yulia Svyrydenko, announced that Kyiv and Washington had signed an agreement on economic cooperation -specifically, the agreement to create the US-Ukraine Reconstruction Investment Fund, also known as the minerals deal. The document was signed in the US on April 30 (May 1, Ukrainian time).

According to Svyrydenko, the key provisions of the agreement include:

• Full ownership and control remain with Ukraine.
• Equal partnership.
• National ownership is protected.
• No debts on Ukraine's part.
• Alignment with Ukraine's European integration course.
• The fund will be replenished exclusively from new licenses.
• Only targeted legislative changes.
• The US will help attract additional investments and technologies.
• The agreement provides tax guarantees.

For his part, US Treasury Secretary Scott Bessent called the signed agreement on the creation of the Reconstruction Fund a historic economic partnership agreement between the US and Ukraine.

Moreover, the American official stated that this agreement clearly signals to Russia that the Trump administration is committed to the peace process, focused on a free, sovereign, and prosperous Ukraine in the long term.

Additionally, earlier, Ukraine's Prime Minister Denys Shmyhal announced that the Ukrainian government had made the necessary decisions for signing the agreement with the US on the creation of the Reconstruction Investment Fund as part of a future natural resources agreement.

The Prime Minister noted that the Investment Fund will be replenished with contributions from both the US and Ukraine. The fund's profits will be reinvested exclusively in Ukraine.