Washington DC: Ukraine and the United States have finalized a critical minerals agreement, marking the culmination of lengthy negotiations between the two nations. Economy Minister Yulia Svyrydenko signed the accord on behalf of Ukraine following discussions with US Treasury Secretary Scott Bessent in Washington DC. "Together with the United States, we are creating the Fund that will attract global investment into our country," Svyrydenko announced on X, signaling a significant step toward bolstering Ukraine's economic landscape.
According to Anadolu Agency, this agreement also serves as a strategic message to Russia, with US Treasury Secretary Bessent emphasizing the US administration's commitment to a peace process that upholds a free and sovereign Ukraine. US Secretary of State Marco Rubio described the deal as "a milestone in our shared prosperity" and a pivotal advancement in efforts to resolve the ongoing Russia-Ukraine conflict. The agreement's key provisions, particularly emphasized by Ukraine, outline crucial facets of this new partnership.
Negotiations for the minerals deal have been underway since the start of President Trump's second term. In a statement made in late February, Trump indicated that the agreement was nearing finalization, with plans for Ukrainian President Volodymyr Zelenskyy to visit Washington for its completion. However, a contentious Oval Office meeting on February 28 led to a temporary collapse of the signing ceremony, resulting in a suspension of US military aid to Ukraine. The two countries resumed talks, leading to a memorandum of intent signed on April 17, which paved the way for the formal agreement.
Svyrydenko has outlined key provisions of the agreement, affirming that ownership of resources within Ukraine's territory will remain under Kyiv's control. She clarified that the deal does not impact privatization processes or the management of state-owned enterprises, with companies like Ukrnafta and Energoatom staying under state ownership. Notably, the agreement omits any provisions regarding Ukrainian debt to the US, an issue President Zelenskyy previously stated Ukraine would not accept as part of the deal.
The agreement establishes an investment fund, structured on a 50/50 basis and jointly managed by both nations. Svyrydenko noted that neither country would hold a dominant vote within the fund, which will be financed by revenues from new licenses in critical materials, oil, and gas sectors. The US will play a crucial role in attracting additional investment and technology, with support from the International Development Finance Corporation (DFC). Svyrydenko emphasized that the fund aims to attract investments from international partners who support Ukraine's fight against Russian aggression.
The fund's profits and revenues are expected to be reinvested in Ukraine for the first decade, focusing on new projects and reconstruction. This arrangement is subject to ongoing discussions, indicating that the agreement's implementation will continue to evolve. The finalized deal now awaits ratification by the Ukrainian parliament, marking the next step in solidifying this significant international partnership.