US and Ukraine sign landmark minerals deal pushed by Trump to reimburse aid

Ukraine and the United States signed an agreement to create a joint investment fund aimed at rebuilding Ukraine and attracting global investments to the country.

“Together with the United States, we are creating the Fund that will attract global investment into our country,” wrote Ukraine’s Minister of Economy Yulia Svyrydenko.

The US-Ukraine Reconstruction Investment Fund, signed by Svyrydenko and US Treasury Secretary Scott Bessent, will operate as an equal partnership with 50/50 management structure, where neither country will have a predominant vote in decision-making.

“This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term,” wrote US Treasury Department in a press release. 

The US Treasury also noted that the agreement recognizes “Ukraine’s contribution to global security by giving up its nuclear arsenal” and demonstrates American commitment to “Ukrainian security, restoration, and reconstruction.”

Key provisions

• Equal partnership structure – The fund will be managed jointly on a 50/50 basis with neither country having a predominant vote.

• Ukrainian sovereignty guaranteed – All resources in Ukrainian territory remain under Ukrainian ownership and control. The Ukrainian state determines what resources to extract and where.

• Protection of national assets – State companies like Ukrnafta and Energoatom will remain state-owned with no changes to privatization processes.

• No debt obligations – The agreement creates no Ukrainian debt to the United States.

• Constitutional compliance – The agreement aligns with Ukrainian legislation and doesn’t conflict with international obligations, including Ukraine’s EU integration course.

• Funding from new licenses only – The fund will receive 50% of revenues from newly issued licenses for critical materials, oil, and gas projects, without affecting existing projects or planned budget revenues.

• Minimal legislative changes – Only amendments to Ukraine’s budget code will be required, with the agreement requiring ratification by Ukraine’s parliament.

• US technical support – The US Development Finance Corporation will help attract investments and technologies from US, EU, and other supporting countries.

• Tax exemptions – All fund income and contributions will be tax-free in both countries to maximize investment potential.

•  Ukraine-focused investment – All funds will be invested exclusively within Ukraine.

• Reinvestment focus – During the first 10 years, profits will be reinvested in Ukraine rather than distributed.

Implementation plan

The United States will make contributions to the fund, potentially including new aid such as air defense systems for Ukraine, according to Svyrydenko. Ukraine will contribute the designated portion of revenues from new licenses.

Ukraine will contribute half of all state revenue generated from new licensing fees for newly developed resource sites. The Ukrainian government retains the option to make supplementary contributions when appropriate. This arrangement is designed for long-term partnership spanning multiple decades.

Investment activities will focus on mineral extraction, oil and gas development, and associated infrastructure and processing facilities. All investment decisions will require mutual agreement between Ukrainian and American representatives. A key provision ensures that all investments remain exclusively within Ukraine.

During the initial decade of operation, all profits and revenues generated by the Fund will be reinvested within Ukraine, supporting either new development projects or reconstruction efforts. The specific mechanisms for this reinvestment approach will be subject to further negotiation.

Criticism of the minerals deal

Previously, some Ukrainian officials described the agreement as “unfair” and akin to “robbery,” worrying that it could undermine national sovereignty, direct profits abroad, and deepen dependence on Washington in a long term. 

Ukrainian parliamentarian Yaroslav Zheleznyak released details indicating the new proposal would give US representatives majority control of the fund management board (three out of five members) and prioritize American interests in new investment projects, profit use, and licensing.

He also noted that the deal lacks explicit security assurances from the US, a key demand from Kyiv. Critics argue this leaves Ukraine vulnerable if future US administrations disengage.

Zelenskyy initially accused Trump of pushing Ukraine to “sell” its resources but he committed to transparency with the Ukrainian public about potentially “risky” elements of this agreement and promised not to sign any document that might compromise Ukraine’s EU accession prospects.

Ukrainian soldiers also expressed deep distrust in Western security assurances, recalling broken promises like the Budapest Memorandum in 1994, and insisted that only concrete military support, such as advanced weaponry like F-35s-could help Ukraine reclaim its territory.