Ukraine and the United States have agreed and signed a document on the creation of a Reconstruction Investment Fund, i.e., a “subsoil agreement.” It provides for joint management and investment in the extraction of minerals and energy resources.
This was announced by First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko.
“Together with US Secretary of the Treasury Scott Bessent, I signed an agreement on the establishment of a US-Ukraine Investment Fund for Recovery,” she wrote.
Svyrydenko explained the main provisions of the signed agreement. According to her, an Investment Fund for Recovery will be established jointly with the US to attract global investment to Ukraine.
The main provisions of the agreement on subsoil resources are as follows:
Full ownership and control remain with Ukraine
All resources on the territory of Ukraine and in its territorial waters belong to the Ukrainian state, which determines where and what to extract. Subsoil resources remain Ukrainian property – this is enshrined in the agreement.
Equal partnership
The fund will be created on a 50/50 basis. Ukraine will manage this fund jointly with the US. Neither party will have a casting vote, reflecting the equal partnership between Ukraine and the United States.
National property is protected
The agreement does not provide for changes in the privatization or management of state-owned companies—they will continue to belong to Ukraine. Companies such as Ukrnafta and Energoatom remain state-owned.
No debts
The agreement does not mention any debt obligations of Ukraine to the United States. The implementation of the agreement will allow both countries to increase their economic potential through equal cooperation and investment.
The agreement complies with the Constitution and does not change the course of European integration
The document is consistent with national legislation and does not contradict any of Ukraine’s international obligations. Importantly, the agreement will send a signal to other global players that Ukraine is a reliable long-term partner for decades to come.
The fund will be financed exclusively from new licenses
This refers to 50% of the proceeds from new licenses for projects in the field of critical materials and oil and gas, which will be transferred to the budget after the Fund is established. Revenues from projects already underway or planned in the budget are not included in the Fund. The agreement provides for further strategic cooperation.
Legislative changes are only minor
Only amendments to the budget code are required for the Fund to operate. The agreement itself must be ratified by the Verkhovna Rada.
The US will help attract additional investment and technology
The Fund is supported by the US government through the DFC, which will help us attract investment and technology from funds and companies in the US, the EU, and other countries that support Ukraine’s fight against Russia. Technology transfer and development are an important part of the Agreement, because we need not only investment but also innovation.
The Agreement provides tax guarantees
The Fund’s income and contributions are not taxed in either the US or Ukraine, so that investments can yield maximum results.
How will the Fund work?
The US contributes to the Fund. In addition to direct funds, it can also provide new assistance, such as air defense systems for Ukraine.
Ukraine contributes 50% of state budget revenues from new royalties on new licenses for new sites. Ukraine may also make additional contributions beyond this baseline if it deems necessary. This is a partnership for decades to come.
The Fund will then invest in mineral, oil, and gas extraction projects, as well as in related infrastructure and processing. Ukraine and the US will jointly determine the specific investment projects to which the funds will be allocated. It is important that the Fund can invest exclusively in Ukraine.
According to Svyrydenko, it is expected that for the first 10 years, the fund’s profits and revenues will not be distributed, but may only be invested in Ukraine – in new projects or reconstruction. These conditions will be discussed further.
The Ukrainian side has drafted an agreement that provides mutually beneficial conditions for both countries. In the document, the US declared its commitment to promoting long-term peace in Ukraine and recognized the country’s contribution to global security after renouncing its nuclear arsenal. The agreement also reaffirms the US commitment to Ukraine’s security, recovery, and reconstruction.