US‑Ukraine fund launches to rebuild and revitalize economy
The USA and Ukraine are establishing a joint investment fund to support the reconstruction of the war-torn country and the development of the raw materials sector. Profits for the first decade will be reinvested exclusively in Ukraine, with neither side maintaining a decisive influence, ensuring equal partnership.
The United States and Ukraine have signed a cooperation agreement concerning natural resources and the country's reconstruction. Under this agreement, the Reconstruction Investment Fund will be set up to invest in sectors such as mining, energy, and infrastructure. The funds will be allocated solely to Ukraine.
The agreement was announced on Facebook by Ukraine's First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko. She highlighted that the fund will have joint management, with neither party dominating.
"Neither party will have a dominant vote, and this will reflect the equal partnership between Ukraine and the United States," noted Svyrydenko.
Financial and military contribution
The American side will provide input to the fund not just financially but also potentially with military resources, such as air defence systems. Ukraine commits to transferring 50% of budget revenues from new licence fees in areas covered by the agreement.
Kyiv also reserves the right to make additional contributions if deemed necessary.
The fund is expected to operate for many years. "This is a cooperation for decades ahead," Svyrydenko emphasised. In the first ten years of operation, all profits and revenues are to be reinvested in Ukraine, primarily in new projects and the reconstruction process.
The fund will finance extractive projects, including oil and gas, as well as the development of infrastructure related to the raw materials sector. The specific selection of projects will be decided jointly by both sides of the agreement.
Contrary to initial US demands, the agreement does not obligate Ukraine to repay past US military aid using revenues from resource exploitation. Ukrainian resource deposits are also to remain under "full control and ownership of Ukraine," while the fund itself is to be co-managed by both parties.
The American government is also expected to help attract additional investments and technologies to Ukraine through the US International Development Finance Corporation (DFC).
Despite Ukraine's hopes, the agreement does not provide concrete security guarantees from the United States. However, as reported by the "Washington Post," it outlines a long-term strategic partnership, emphasizing American backing for Ukraine’s security, economic development, post-war recovery, and integration into the global economy.
Ukraine and USA signed an agreement
"On April 30, the United States and Ukraine signed an agreement to establish the United States-Ukraine Reconstruction Investment Fund. In recognition of the significant financial and material support that the people of the United States have provided to the defense of Ukraine since Russia’s full-scale invasion, this economic partnership positions our two countries to work collaboratively and invest together to ensure that our mutual assets, talents, and capabilities can accelerate Ukraine’s economic recovery," stated the announcement. It was announced that both parties will continue working on finalising the programme management details.
It was announced that both parties will continue working on finalising the programme management details.
