A new economic partnership between the United States and Ukraine has been formalized through a minerals and rare earth agreement that will fund Ukraine’s reconstruction and help offset billions in US war aid. The pact lays the groundwork for a US-Ukraine Reconstruction Investment Fund, designed to support post-war rebuilding and future development.
Under the deal, both nations will jointly manage and benefit from future mining revenues. Profits and royalties from newly initiated mineral extraction projects will be equally shared, while each country will hold equal voting power within the fund’s governance. The agreement does not apply to existing resource projects, preserving Ukraine’s control and avoiding additional debt.
Kyiv’s First Deputy Prime Minister Yulia Svyrydenko confirmed the agreement’s signing and stated that Ukraine would retain full ownership of all natural resources and related infrastructure. She emphasized that the initiative is aimed at drawing in international investors without compromising state interests. The agreement will only become fully effective once it receives approval from Ukraine’s parliament.
The agreement comes after several months of complex negotiations that saw considerable back-and-forth between the two sides. Early proposals from Washington reportedly included terms that would have given the US exclusive control over revenues—a point Kyiv strongly opposed. Those provisions were ultimately removed following sustained diplomatic and legal efforts.
Ukrainian Prime Minister Denys Shmyhal described the deal as both equitable and beneficial. He reiterated that the country would maintain authority over decisions regarding extraction sites and licensing, while existing national companies like Ukrnafta and Energoatom would remain fully state-owned.
Sources suggest the deal almost collapsed just before the signing, as US officials pressed Ukraine to agree to additional legal and structural components related to the fund. Despite the pressure, Ukraine succeeded in securing changes that preserved key national interests.
The concept for the fund originated from Ukrainian officials seeking to offer economic opportunities that could help secure US political and financial backing, particularly under a potential Trump administration. However, the initial US response reportedly took Kyiv by surprise, with proposals seen as heavily skewed in Washington’s favor.
Trump has since voiced support for the finalized version, noting that a US role in Ukraine’s resource sector could deter interference from hostile actors. He also discussed the deal with President Zelenskyy during a recent meeting, reportedly encouraging him to proceed due to Ukraine’s relative vulnerability in the face of Russian aggression.
Though not officially confirmed, US contributions to the fund may include both financial investments and material support, such as military systems to enhance Ukraine’s defense capabilities. The agreement also outlines that income generated by the fund will not be taxed in either country, a move intended to maximize investor interest and returns.
Ukraine is estimated to possess around 5% of the world’s reserves of minerals and rare earth elements. Many of these resources remain untapped or are located in territories currently occupied by Russian forces.
The nonprofit Razom for Ukraine welcomed the initiative, urging US officials to expand their efforts by increasing sanctions against Russia and enhancing support for Ukraine’s sovereignty and security.
