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Local sources from Ukraine: BBC, Закарпаття онлайн.
UK coverage: The Guardian.

In a historic move, the United States and Ukraine have signed an agreement to establish the US-Ukraine Reconstruction Investment Fund, aimed at sharing profits and royalties from the future sale of Ukrainian minerals and rare earths. The deal, which was nearly derailed just hours before it was signed, is seen as a crucial step in repaying the estimated $175bn in aid provided by the US to Ukraine since the beginning of the war. Ukrainian officials have portrayed the agreement as equitable, emphasizing that it allows Ukraine to maintain control over its natural resources.

The signing of the agreement comes after months of negotiations and revisions. The first version of the agreement was presented to Ukraine in February, but due to a dispute between the presidents, it fell apart. However, the parties were able to find common ground and reach a compromise. The agreement, signed by First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko, ensures that full ownership and control of resources remain with Ukraine. It also establishes an equal partnership between Ukraine and the United States, with neither party having a dominant voice.

One of the key concerns raised by critics was the potential for the agreement to be exploitative, with previous versions of the agreement stipulating that the US would have 100% ownership of the special fund in the mining agreement. However, the final agreement does not involve any changes in privatization processes or the management of state-owned companies, ensuring that companies like ‘Ukrnafta’ and ‘Energoatom’ will remain state-owned. Furthermore, the agreement does not mention any debt obligations of Ukraine to the US, alleviating concerns about additional financial burdens.

The agreement also aligns with Ukraine’s Eurointegration course and complies with national legislation and international obligations. It serves as a signal to other global players that Ukraine is a reliable long-term partner. The fund will be filled with revenues exclusively from new licenses for projects in critical materials and the oil and gas sectors, with 50% of the funds flowing into the budget after the establishment of the fund. The US government, through the Development Finance Corporation, will assist Ukraine in attracting additional investments and technologies.

While the agreement does not include specific security guarantees, it is seen as a tangible expression of US support for Ukraine’s security. The Trump administration has emphasized that US involvement in Ukraine’s mining industry and other sectors is an investment in security. The agreement also highlights the US commitment to Ukrainian security, recovery, and reconstruction.

The signing of this agreement marks a significant milestone in the relationship between the US and Ukraine. It not only helps repay the aid provided by the US but also paves the way for long-term economic cooperation and investment. The establishment of the US-Ukraine Reconstruction Investment Fund will accelerate Ukraine’s economic recovery and ensure that Ukraine maintains control over its natural resources. As both countries look towards the future, this agreement sets the stage for a strong and mutually beneficial partnership.