Ukraine's Minister of Economy, U.S. Treasury Secretary sign deal to establish U.S.-Ukraine Reconstruction Investment Fund
Ukraine and the United States will establish a U.S.-Ukraine Reconstruction Investment Fund to attract global investments into the country. The relevant agreement was signed on Wednesday in Washington by First Deputy Prime Minister and Minister of Economy of Ukraine Yulia Svyrydenko and U.S. Treasury Secretary Scott Bessent.
"The Fund will be financed exclusively through revenue from NEW licenses – specifically, 50% of the proceeds from new licenses for critical materials and oil and gas projects that will flow into the budget after the Fund's creation. Revenues from already launched projects or budgeted income will not be included in the Fund," Svyrydenko wrote in a Facebook post.
She explained that, in addition to direct monetary contributions, the United States could support the Fund with new forms of aid – for example, air defense systems for Ukraine.
"Ukraine will contribute 50% of the state budget revenues from NEW royalties on NEW licenses for NEW plots. Ukraine may also make additional contributions beyond this baseline if it deems necessary. This is a long-term partnership – one designed to last for decades," the First Deputy Prime Minister said.
According to Svyrydenko, the Fund will invest in projects related to the extraction of minerals, oil, and gas, as well as associated infrastructure and processing. Specific investment projects to be financed by the Fund will be jointly determined by Ukraine and the United States.
"Importantly, the Fund can only invest in Ukraine. We expect that for the first ten years, the Fund's profits and revenue will not be distributed but rather reinvested exclusively into new projects or reconstruction within Ukraine. These conditions will be subject to further discussion," she added.
She emphasized that the agreement guarantees full ownership and control by Ukraine. "All resources within our territory and territorial waters belong to Ukraine. The Ukrainian state alone determines where and what to extract. The subsoil remains under Ukrainian ownership – this is enshrined in the agreement," Svyrydenko said.
The agreement establishes an equal partnership: the Fund will be created on a 50/50 basis. "Ukraine and the United States will jointly manage the Fund. Neither side will hold a controlling vote – this ensures equal partnership between the two nations," she explained.
Svyrydenko also noted that the agreement does not alter existing privatization processes or management structures of state-owned enterprises such as Ukrnafta or Energoatom, which will remain under Ukrainian ownership. She reiterated that the Fund will be capitalized solely through new licenses and royalties from critical materials and oil and gas projects.
"The agreement contains no provisions for Ukrainian debt obligations to the United States. Its implementation will enable both countries to expand their economic potential through equal cooperation and investment," she said.
She also underscored that the agreement is in line with Ukraine's Constitution and does not affect the country's EU integration course. "This agreement sends a strong signal to the global community that long-term cooperation with Ukraine is reliable and viable for decades to come," she wrote.
To operationalize the Fund, only amendments to the Budget Code are required, while the agreement itself must be ratified by the Verkhovna Rada.
The Fund will be supported by the U.S. government through the U.S. Development Finance Corporation (DFC), which will help attract investment and technology from funds and companies in the United States, EU, and other countries backing Ukraine in its war against Russian aggression, Svyrydenko noted.
She added that the agreement includes tax guarantees: the Fund's income and contributions will not be taxed in either Ukraine or the United States to maximize investment outcomes.
"We have developed a mutually beneficial version of the agreement for both countries. It demonstrates the U.S. commitment to long-term peace in Ukraine and acknowledges Ukraine's contribution to global security through the relinquishment of its nuclear arsenal. It is an agreement in which the United States reaffirms its dedication to Ukraine's security, recovery, and reconstruction," Svyrydenko concluded.
