On April 30, the Ukrainian government adopted the decisions necessary for the signing of an agreement between Kyiv and Washington on the creation of a reconstruction investment fund.
This was reported by the Prime Minister of Ukraine Denys Shmyhal.
The official listed the key principles of this document:
- the fund will be created on a 50/50 basis, with both parties having equal voting rights;
- Ukraine retains full control over subsoil, infrastructure and natural resources;
- the agreements do not provide for any debt obligations;
- the fund will invest in projects and guarantee commercial purchases of products on a "take or pay" basis;
- the agreement will not become an obstacle on Ukraineʼs path to the EU;
- The fund will be filled with contributions from Washington and Kyiv. Profits will be reinvested exclusively in Ukraine.
Shmyhal expects that thanks to these agreements, Ukraine will be able to attract significant resources for reconstruction, grow economically, and obtain the latest technologies from partners and a strategic investor in the person of the United States.
What is known about the US-Ukraine subsoil agreement?
The US Treasury Secretary Scott Bessent brought a pilot draft of a minerals agreement to Ukraine on February 12. Washington hoped that Kyiv would sign it immediately. However, President Zelensky said that he had banned the signing of the agreement because it would not be able to protect Ukraine’s interests — there is no connection to investments, profits, and security guarantees. After that, it began to be finalized.
The final agreement was supposed to be signed on February 28, during Volodymyr Zelenskyʼs visit to the White House. However, then Donald Trump and the Ukrainian president had a falling out — the Ukrainian delegation left the White House early. The document was not signed. However, both sides stated that negotiations on the agreement were ongoing.
The United States is now proposing a new deal on Ukrainian minerals, as well as oil and gas, without offering security guarantees in return. The Financial Times, which has seen the draft agreement, writes that Washington is aggressively expanding its demands. Kyiv believes that this could undermine Ukraine’s sovereignty, divert profits abroad and deepen the country’s dependence on the United States. However, Kyiv will ask to change the agreement, demanding in return increased American investment. The US President Donald Trump has already threatened Zelensky with “big problems” if he abandons the subsoil deal.
- The day before, Prime Minister of Ukraine Denys Shmyhal confirmed that Kyiv could sign an agreement with the US on minerals within the next 24 hours.
- On April 27, an official said that Kyiv had agreed not to count United States aid in the subsoil deal.
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