On April 30, 2025, the United States and Ukraine solidified a significant economic partnership by signing a landmark agreement aimed at the joint extraction of minerals and the establishment of an American-Ukrainian investment fund dedicated to the restoration of Ukraine. This agreement, reached at the U.S. Treasury Department, signals a pivotal moment in U.S.-Ukraine relations, particularly in light of ongoing tensions with Russia.
U.S. Treasury Secretary Scott Bessent, who announced the deal, emphasized that the agreement is intended to help "put an end to this cruel and senseless war." He added that it sends a clear message to Russia regarding the U.S. commitment to a peaceful resolution centered around a free, sovereign, and prosperous Ukraine. Bessent stated, "This agreement clearly shows Russia that the Trump administration is committed to a peaceful process, at the center of which is a free, sovereign and prosperous Ukraine in the long term."
Ukrainian Economy Minister Yulia Sviridenko, who signed the agreement on behalf of Ukraine, expressed optimism about the partnership. She noted that the fund would attract global investments, thus bolstering Ukraine's economy. "Together with Washington, we are creating a fund that will attract global investments to our country," Sviridenko said.
The agreement encompasses the development of 57 types of minerals, including critical resources like aluminum, graphite, oil, and natural gas. Notably, Sviridenko assured that full ownership and control over all resources within Ukrainian territory and territorial waters would remain with Ukraine. She described the partnership as one based on equality, with the fund structured on a 50/50 basis between the two nations.
According to Sviridenko, the fund will focus on investing in the extraction of essential minerals, oil, and gas, as well as the necessary infrastructure. Both the U.S. and Ukraine will collaborate on project selection, aiming to create favorable conditions for increased investments in the mining industry and energy technologies in Ukraine.
Importantly, the agreement stipulates that all profits generated by the fund during the first ten years will be reinvested in new projects and the reconstruction of Ukraine. "These conditions will be the subject of further discussion," Sviridenko noted, indicating that the initial profits will not be distributed but instead focused on rebuilding efforts.
While the agreement outlines a cooperative framework, it does not include explicit security guarantees for Ukraine from the U.S. However, it does mention that any new military assistance provided by the U.S. to Ukraine will be considered an increase in the U.S. capital investment in the fund.
The deal also reflects a shift in U.S. rhetoric regarding Russia. Following the agreement, U.S. officials adopted a more critical stance towards Russia, with Bessent stating, "This agreement sends a clear signal to Russia that the Trump administration is in favor of a peaceful process, based on a free, sovereign and prosperous Ukraine." This marks a departure from previous narratives that often downplayed Russia's role as an aggressor.
In terms of legislative implications, Sviridenko indicated that any necessary changes to Ukrainian law to facilitate the fund's operation would be limited and targeted. She emphasized that the fund’s establishment would not infringe upon Ukraine's sovereignty or its aspirations for European Union membership. "The agreement supports Ukraine's course towards European integration," she assured.
Despite initial concerns that the agreement could compromise Ukraine’s sovereignty and its EU aspirations, Sviridenko confirmed that the terms were crafted to align with Ukraine's constitutional framework. The Ukrainian government has been cautious about ensuring that the agreement does not hinder its path toward EU membership, especially amid fears that it might favor American investors over local interests.
Furthermore, the deal allows for the possibility of U.S. military assistance, including air defense systems, which has been a point of contention in previous negotiations. The agreement does not impose any long-term obligations on Ukraine regarding past U.S. military aid, which has been a significant concern for Kyiv. "No debts, no assistance that was provided to Ukraine for the signing of this agreement is not the subject of this agreement," Shmygal emphasized.
As the agreement unfolds, it is expected to enhance Ukraine's economic recovery while solidifying its strategic partnership with the U.S. The investment fund is set to play a crucial role in channeling resources into Ukraine's reconstruction efforts, particularly in sectors that have been devastated by the ongoing conflict.
In the wake of the signing, U.S. President Donald Trump highlighted the potential benefits for both nations, stating, "We have concluded a deal in which our money is safe, where we can start digging and do what we have to do." He noted that the American presence in Ukraine would deter unscrupulous actors from interfering in the resource extraction process.
While the agreement has been met with cautious optimism, it also raises questions about the future of U.S. involvement in Ukraine and the broader implications for regional security. As both nations move forward with the implementation of the agreement, the focus will remain on ensuring that Ukraine's sovereignty is preserved while fostering a robust economic partnership.
The implications of this agreement are significant, not only for Ukraine's immediate recovery efforts but also for the geopolitical landscape in Eastern Europe. As the U.S. and Ukraine navigate this new chapter in their relationship, the eyes of the world will be watching closely to see how these developments unfold.
