Ukraine's PM on subsoil agreement: Ukraine and US discussing joint investment fund
Photo: Ukrainian Prime Minister Denys Shmyhal (kmu.gov.ua)
Ukraine and the US are discussing the creation of a joint investment fund for economic and security development. Kyiv will invest revenues from mineral extraction, while the US will provide financing, states Ukrainian Prime Minister Denys Shmyhal during the YES Three Years - Time to Win meeting, according to Interfax-Ukraine.
Negotiations are underway to establish a joint investment fund, into which Kyiv will invest revenues from critical mineral extraction, while Washington will contribute cash for the development of various sectors.
Ukrainian Prime Minister Denys Shmyhal stated that Ukraine does not consider critical mineral extraction without guaranteed security and a peace plan. In negotiations with the US, the focus is on two key aspects: ensuring security and fostering economic cooperation.
"We are offering the same conditions for European partners and G7 partners — that is, for everyone who has supported Ukraine over these three years," the prime minister noted.
The fund will be divided into two main contributions: Ukraine will invest revenues from critical mineral extraction, while the US will provide cash for investments in security, economic development, and infrastructure. All financial contributions will be distributed roughly equally, on a 50-50 basis.
This fund will be jointly managed by the governments of Ukraine and the US, and the first memorandum of understanding for its creation is already being prepared. Shmyhal emphasized that the agreement is not extraordinary and does not contain elements comparable to colonial conditions.
The prime minister also stressed that the creation of the fund does not contradict Ukraine’s existing agreements with the European Union and international financial institutions such as the IMF and the World Bank.
Regarding critical minerals, Shmyhal clarified that Ukraine has already explored deposits of 22 out of 30 minerals deemed essential for the EU and has several memorandums with European partners.
Agreement on mineral resources
Last week, the US proposed that Ukraine sign an agreement on rare earth metals, brought to Kyiv by Treasury official Scott Bessent. However, Zelenskyy's team rejected the initial draft, which would have granted the US access to Ukraine's strategic mineral resources.
Zelenskyy dismissed the proposal again at the Munich Security Conference, emphasizing that it did not align with Ukraine’s interests.
After meeting with Kellogg, the president instructed his team to work "quickly and carefully" on new agreements with the US, stressing the importance of strong and effective deals for Ukraine.
