Ukraine and US sign minerals deal

"Together with US Secretary of the Treasury Scott Bessent, I signed the Agreement on the Creation of the US-Ukraine Reconstruction Investment Fund," she said.

Svyrydenko also explained what this agreement entails:

"Together with the US, we will create an Investment Fund for the reconstruction of Ukraine, which will attract global investments into our country," the official stated in her post.

Additionally, she outlined the key points of the agreement:

Full ownership and control remain with Ukraine

All resources on our territory and in our territorial waters belong to Ukraine. The Ukrainian state determines where and what to extract. The subsoil remains in Ukrainian ownership, as outlined in the agreement.

Equal partnership

The fund will be established on a 50/50 basis. Ukraine will jointly manage the fund with the US. Neither side will have a prevailing vote, reflecting an equal partnership between Ukraine and the US.

National ownership is protected

The agreement does not envisage changes in the privatization processes or management of state-owned companies - they will remain under Ukrainian ownership. Companies like Ukrnafta and Energoatom will remain state-owned.

No debts

The agreement makes no mention of any debt obligations Ukraine has to the US. The implementation of the agreement will allow both countries to increase their economic potential through equal cooperation and investment.

Agreement complies with the Constitution and does not alter Ukraine's European integration course

The document aligns with national legislation and does not contradict any of Ukraine's international obligations. Importantly, the agreement will send a signal to other global players that long-term, reliable cooperation with Ukraine is possible - for decades.

Fund will be filled exclusively with revenue from new licenses

It concerns 50% of funds from new licenses for projects in critical materials, oil, and gas, which will be allocated to the budget after the Fund's creation. Revenues from already initiated projects or planned budgetary revenues are not included in the Fund. The agreement outlines further strategic cooperation.

Legislative changes are only targeted

For the Fund's operation, only amendments to the budget code are required. The agreement itself must be ratified by the Verkhovna Rada.

US will help attract additional investments and technologies

The Fund is supported by the US government through the DFC agency, which will assist in attracting investments and technologies from funds and companies in the USA, EU, and other countries that support our fight against the Russian enemy. The transfer and development of technologies are an important part of the agreement, as Ukraine needs not only investments but also innovations.

Agreement provides tax guarantees

The Fund's income and contributions are not taxed in either the US or Ukraine, ensuring that investments yield the greatest possible results.

Fund's work

Svyrydenko also explained how the Fund will operate. According to her, the US makes a contribution to the Fund, and besides direct financial contributions, they can also provide NEW assistance - such as air defense systems for Ukraine.

"Ukraine contributes 50% of the state budget's revenue from NEW rents on NEW licenses for new areas. Ukraine can also make additional contributions beyond this basic one if deemed necessary. This is about cooperation for decades to come," she said.

The Fund will then invest in projects related to the extraction of minerals, oil, and gas, as well as in related infrastructure or processing. The specific investment projects to which funds will be allocated will be determined jointly by Ukraine and the US. Importantly,

Fund can invest exclusively in Ukraine

"We expect that for the first 10 years, the profits and funds of the Fund will not be distributed but can only be invested in Ukraine - in new projects or reconstruction. These conditions will be discussed further," Svyrydenko shared.

Thus, the Ukrainian side has developed a version of the agreement that provides mutually beneficial conditions for both countries.

"This is an agreement in which the US highlights its commitment to promoting long-term peace in Ukraine and recognizes the contribution Ukraine has made to global security by giving up its nuclear arsenal. The agreement also emphasizes the US dedication to Ukrainian security, restoration, and reconstruction," Svyrydenko stated.

How the idea emerged and what controversies arose

The idea to conclude an agreement on the joint use of mineral resources emerged as part of President Volodymyr Zelenskyy's victory plan. He emphasized that Ukraine possesses significant reserves of minerals, including rare earth metals worth trillions of dollars.

These resources, as the president noted, could serve as the foundation for the country’s economic recovery and strengthening of its strategic partnership with the US.

As Western media reported, this point was essentially developed with the intention of appealing to US President Donald Trump, and it succeeded in catching his interest. The American president quickly seized on the topic but began to promote it in the most advantageous way for himself.

Initially, the plan was to sign a framework agreement between the two countries. As explained by the Prime Minister of Ukraine, Denys Shmyhal, a subsequent agreement on the creation of an investment fund was to follow, into which Ukraine would direct the funds received from the sale of its mineral resources. However, due to a dispute between Zelenskyy and Trump in the Oval Office in February, this agreement was not concluded.

At the end of March, Washington proposed an updated version of the agreement to Kyiv. Although the official content of the document was not disclosed, the President of Ukraine stated that the new agreement was no longer a framework one, but a full-fledged one, which would require ratification by the Verkhovna Rada.

After that, the parties began negotiations on the terms of cooperation. At the same time, media reports about the content of the project sparked lively discussions. In particular, the provisions that allegedly grant the US access to a wide range of Ukrainian natural resources - not only rare earth metals but also gas and oil - caused a stir.

Leaks also mentioned that the management of the investment and reconstruction fund would predominantly be in the hands of the American side. Furthermore, according to the document, Ukraine would be obligated to repay the funds for all the aid received from the US since the start of the full-scale war.

However, recently, following a meeting between the Prime Minister of Ukraine and US Treasury Secretary Scott Bessent, it was announced that the agreement would not include the American aid provided to Ukraine prior to its signing.

Signing of the memorandum

However, on April 17, the parties took a step towards a joint agreement. Ukraine and the US signed a memorandum that formalized their mutual intention to conclude a large-scale economic partnership agreement. One of the key elements of this agreement is the creation of an Investment Fund for the Reconstruction of Ukraine.

The signing of the memorandum took place online. On the Ukrainian side, the document was signed by First Deputy Prime Minister Yulia Svyrydenko, while on the American side, it was signed by US Treasury Secretary Scott Bessent.

“We are preparing the creation of an Investment Fund for the Reconstruction of Ukraine. The relevant agreement will open up opportunities for significant investments, infrastructure modernization, and mutually beneficial partnership between Ukraine and the US,” Svyrydenko said at the time.

The Deputy Prime Minister noted that the agreement must be ratified by the Verkhovna Rada of Ukraine.

What is the outcome of the signed agreement between Ukraine and the US

The Bloomberg news agency, citing the draft of the received document, reported that within the framework of the agreement, the US and Ukraine aim to create conditions for increasing investments in the mining industry, energy, and related technologies in Ukraine.

According to journalists, the text also states that Washington recognizes Kyiv's intentions to ensure that the agreement does not contradict Ukraine's plans to join the European Union.

Additionally, the US agreed that the American contribution to the joint investment fund would only include future military aid to Ukraine. Regarding this, as mentioned earlier, Shmyhal stated that Ukraine had agreed not to include the US aid received before the signing in the agreement on natural resources.

As Bloomberg notes, the Trump administration insisted that the profits from future Ukrainian investment projects, particularly related to minerals and infrastructure, be considered as compensation for the military aid provided since the beginning of the full-scale invasion.

US President Donald Trump demanded that Kyiv sign the agreement as soon as possible. On the other hand, the Ukrainian side emphasized that all the details needed to be agreed upon and that the process could not be rushed.

Additionally, President Volodymyr Zelenskyy stated that Ukraine would not sign a document that would threaten its EU accession, nor would it agree to an agreement that would include debts to the US for past assistance.

Meanwhile, Deputy Minister of Economy Taras Kachka explained that the main goal of the negotiations was to create an investment fund between Ukraine and the US, which would have preferential rights to invest in a wide range of projects.

According to him, the primary focus would be the development of mineral resources. However, Kachka also noted that Ukraine is interested in investments in infrastructure - specifically roads, ports, and energy.

For more on the situation surrounding the signing of the agreement between Ukraine and the US, read the article by RBC-Ukraine.