New Agreement between Ukraine and the USA on Mineral Investments

The Minister of Economy of Ukraine, Yulia Svyrydenko, and the US Secretary of the Treasury, Scott Bessent, have signed an agreement on investments in mineral resources.

Source: Svyrydenko on Facebook, US Department of the Treasury

Direct quote from Svyrydenko: "Together with US Secretary of the Treasury Scott Bessent, I signed an agreement to create the US-Ukraine Reconstruction Investment Fund".

Direct quote from Bessent: "The United States is committed to supporting efforts to end this brutal war. This agreement sends a clear message to Russia that the Trump administration is dedicated to a peace process centered around a free, sovereign, and prosperous Ukraine in the long term. This partnership aims to demonstrate the commitment of both nations to lasting peace and prosperity in Ukraine. No state or individual that has funded or supplied the Russian military machine will be allowed to benefit from Ukraine's reconstruction".

Details: Svyrydenko outlined the key provisions of the agreement regarding natural resources.

• All resources remain under Ukrainian ownership as stipulated in the agreement.
• The Investment Fund will be established on a 50/50 basis, with Ukraine and the USA jointly managing the Fund.
• The agreement does not change the privatization processes or the management of state-owned enterprises; companies like Ukrnafta and Energoatom will remain state-owned.
• The agreement does not mention any debt obligations of Ukraine to the USA.
• The agreement is in accordance with the Constitution and does not change the Euro-integration course.
• The document complies with national legislation and does not contradict any of Ukraine's international obligations.
• The Fund will be financed exclusively from new licenses, with 50% of revenues from new critical materials and oil and gas projects going to the budget after the Fund is established.
• Legislative changes will be minimal, only requiring amendments to the budget code, and the agreement must be ratified by the Verkhovna Rada.
• The United States will assist Ukraine in attracting investments, technologies, and innovations through the DFC (Development Finance Corporation).
• Revenues and contributions to the Fund are not taxable in either the USA or Ukraine.

Direct quote from Svyrydenko: "The USA is contributing to the Fund, including direct funds and new aid such as air defense systems for Ukraine.

We expect that in the first 10 years, the Fund's profits and revenues will not be distributed but can only be invested in Ukraine – in new projects or reconstruction. These terms will be discussed further".