USA and Ukraine launch joint fund for reconstruction boost
The USA and Ukraine are setting up a joint investment fund to support the reconstruction of the war-torn country and the development of its raw materials sector. Profits for the first decade will be reinvested exclusively in Ukraine, and neither side will hold a decisive voice, which is intended to ensure an equal partnership.
The United States and Ukraine have signed a cooperation agreement focusing on natural resources and the country's reconstruction. Based on this agreement, the Reconstruction Investment Fund will be established to invest in sectors such as mining, energy, and infrastructure, with the funds directed solely to Ukraine.
The agreement was announced on Facebook by Ukraine's First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko. She emphasized that the fund will have joint management, with neither party having dominance.
"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 contribute to the fund not only with financial resources but also potentially with military resources, such as air defense systems. Ukraine commits to transferring 50% of budget revenues from new license 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," emphasized Svyrydenko. In the first 10 years of operation, all profits and revenues are to be reinvested in Ukraine, mainly 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 up to both sides of the agreement and will require a joint decision.
Contrary to initial U.S. demands, the agreement does not require Ukraine to repay past U.S. military aid using revenues from resource exploitation. Ukrainian resource deposits will also remain under "full control and ownership of Ukraine," while the fund itself will be jointly managed by both parties.
The American government is also expected to help attract additional investments and technologies to Ukraine through the U.S. 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 to work on finalizing the program management details.
