Ukraine and US sign long-awaited minerals deal

Ukraine and the United States on April 30 signed a deal that covers 57 strategic minerals – including lithium, cobalt, nickel, uranium, and rare earths that are essential for electric vehicles, semiconductors, satellites, and advanced weapons. 

In doing so, the U.S. gets preferential access to these difficult-to-extract minerals, including newly discovered oil and gas deposits. Washington has stated that a U.S. presence in the project could act as a deterrent to further hostilities. 

Both sides will have a 50-percent stake in a fund called the U.S.–Ukraine Reconstruction Investment Fund, Ukraine’s Economy Minister Yuliia Svyrydenko and the U.S. Department of the Treasury announced.

“This is a document that can ensure success for both of our countries – Ukraine and the United States,” Svyrydenko said.

All Ukrainian companies that are responsible for energy resources remain 100 percent Ukrainian state-owned (Ukrnafta and Energoatom). All funds invested in the first years will be invested in the reconstruction of Ukraine over a period of 10 years. 

“This agreement signals the U.S. commitment to fostering long-term peace in Ukraine and recognises Ukraine’s contribution to global security by giving up its nuclear arsenal,” Svyrydenko said.

The document also states that the U.S. “reaffirms its commitment to Ukrainian security, recovery, and reconstruction.”

The agreement also stipulates that Russia conducted a full-scale invasion of Ukraine. 

Additionally, the agreement does not impose any debt obligations on Ukraine. 

The fund will be financed exclusively through revenues from new licences, with only targeted changes to Ukrainian legislation as needed. Importantly, the agreement does not obstruct Ukraine’s path toward European Union membership.

Ukraine’s legislature, the Verkhovna Rada, must still ratify the deal to give it legal status. 

The U.S. will also help attract additional investments and technology through its International Development Finance Corporation (DFC). The agreement includes tax exemptions—fund revenues and contributions will not be taxed in either country.

Svyrydenko said that the U.S. will contribute to the fund.

“Besides direct funding, contributions can come in the form of new assistance—such as air defence systems for Ukraine,” she said.

Ukraine will contribute 50 percent of state budget revenues from a new rent tax on new licences for newly opened sites.

“Ukraine may also contribute additional resources beyond this base amount if deemed necessary. This is a partnership designed to last for decades,” Svyrydenko said.

The fund will invest in mineral extraction, oil and gas projects, as well as related infrastructure and processing. All investment projects will be approved jointly by Ukraine and the U.S., and the fund is strictly limited to projects inside Ukraine.

“We expect that for the first 10 years, the fund’s income and revenues will not be distributed but reinvested in Ukraine—in new projects or reconstruction. These terms will be further discussed,” the minister said.

U.S. Treasury Secretary Scott Bessent said the agreement “signals clearly” to Russia that the Trump administration is committed to a peace process “centered on a free, sovereign, and prosperous Ukraine over the long term.”

“President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides’ commitment to lasting peace and prosperity in Ukraine,” Bessent said. “And to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine.”