The US and Ukraine signed an agreement to establish an Investment Reconstruction Fund.

Ukrainian Minister of Economy Yulia Svyrydenko and US Treasury Secretary Scott Bessant signed an Agreement on the establishment of the US–Ukraine Investment Reconstruction Fund. The document concludes a lengthy negotiation process that sparked considerable discussion over the past few weeks.

Key provisions of the agreement

According to Minister Svyrydenko, the agreement is based on equal partnership, where the fund is established on a 50/50 basis, and management will be conducted jointly. 'Neither party will have a prevailing vote, and this will reflect the equal partnership between Ukraine and the United States,' the minister emphasized.

For the Ukrainian side, it was important to maintain control over resources. 'All resources in our territory and territorial waters belong to Ukraine. The subsoil remains Ukrainian property - this is enshrined in the agreement,' Svyrydenko noted.

The agreement does not affect national ownership - state companies remain in Ukrainian ownership.

Fund Operation Mechanism

The fund will be filled with contributions from both parties. The US can make contributions not only in cash but also in new military assistance. Ukraine will contribute 50% of state budget revenues from new rents on new licenses.

'Importantly, the fund can invest exclusively in Ukraine. We expect that for the first 10 years, the fund's profits and revenue will only be invested in Ukraine - in new projects or reconstruction,' the minister explained.

Reaction from the US

According to Bloomberg, the agreement provides the US with privileged access to new investment projects for the development of Ukraine's natural resources, including aluminum, graphite, oil, and natural gas.

'We made an agreement under which our money is safe, where we can start digging and do what we have to do,' President Donald Trump said. 'This is also good for them, because you will have an American presence on site, and the American presence will keep many wrongdoers away from the country or at least from the territory where we are excavating,' he added.

According to Bloomberg, the US will have first claims on profits transferred to a special investment reconstruction fund that will be controlled by Washington. According to the draft document, the US agreed that only future military assistance they may provide to Ukraine will count towards their contribution to the fund.

Context of the Negotiations

The signing of the agreement was preceded by a complex negotiation process. Just the day before, there were discrepancies regarding the documentation. The package of documents consisted of three parts: a framework intergovernmental agreement, an agreement to establish the investment fund, and a technical document on the principles of the fund's operation.

US Treasury Secretary Scott Bessant stated that 'the Ukrainian side decided to make some last-minute changes.' Some experts, including former Minister of Economy Tymofiy Milovanov, noted that according to Ukrainian legislation, the government had the authority to sign only the first part of the agreement, while the subsequent documents could be signed only after the first part is ratified by the Verkhovna Rada.

According to Prime Minister Denys Shmyhal, the agreement is based on five key principles: equality of the parties, Ukraine's control over resources, absence of debt obligations, investment guarantees, and alignment with the European integration course.

For the administration of President Donald Trump, this agreement is viewed as an important victory in the context of efforts to end the war in Ukraine.