US-Ukraine minerals deal: Ukraine approves decision to create reconstruction fund
Photo: Denys Shmyhal, Prime Minister of Ukraine (kmu.gov.ua)
The Ukrainian government has approved the necessary decisions for signing a deal with the US to create an Investment Fund for Reconstruction under the upcoming minerals deal, according to Prime Minister Denys Shmyhal.
The fund will be based on a 50/50 model. Ukraine will maintain full control over its natural resources. Additionally, the agreement will not hinder Ukraine's European integration process.
Shmyhal outlined five key principles of the agreement:
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Equality: The Investment Fund will operate on a 50/50 basis, with both sides having equal voting rights.
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Maintaining control: Ukraine will maintain full control over its natural resources, infrastructure, and minerals.
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New investments, not debts: According to the Prime Minister, the agreement does not entail any debt obligations for Ukraine.
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Guaranteed investors and buyers: The fund will invest in projects and guarantee commercial purchases on a "take or pay" basis.
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Alignment with EU Integration course: The deal will not pose an obstacle to Ukraine's EU membership.
Shmyhal also stated that the Investment Fund will be funded by contributions from both the US and Ukraine, with profits reinvested exclusively in Ukraine.
"This agreement will allow us to attract significant resources for reconstruction, initiate economic growth, and receive the latest technologies from our partners and the US as a strategic investor," Shmyhal emphasized.
Ukraine-US minerals deal
Earlier this year, in February, Ukraine and the US began discussions on an agreement regarding rare earth metals. Since then, both sides have been working on terms that align with the interests of Kyiv and Washington.
In March, the US presented a new draft of the agreement to Kyiv. The two sides have already held several technical online meetings to discuss cooperation details.
At the beginning of April, Ukraine's Foreign Minister Andrii Sybiha stated that Kyiv had defined its position on the agreement and was preparing a delegation for negotiations in Washington.
According to RBC-Ukraine's sources, Ukraine and the US may sign the minerals deal as early as April 30. First Deputy Prime Minister Yuliia Svyrydenko is currently in Washington, and Prime Minister Denys Shmyhal confirmed that the agreement will be signed within the next 24 hours.
However, on April 30, the Financial Times reported that the signing of a framework agreement on resource use between Ukraine and the US may be at risk of falling through.
US Treasury Secretary Scott Bessent stated that Washington is ready to sign the minerals deal today, but added that everything depends on the Ukrainian side.
