US, Ukraine sign resource agreement

Washington and Kyiv have signed an agreement involving the establishment of an investment fund to support Ukraine’s reconstruction and facilitate the joint extraction of the country’s natural resources.

The agreement was signed by US Treasury Secretary Scott Bessent and Ukraine’s First Deputy Prime Minister and Minister of Economy, Yulya Sviridenko.

Secretary Bessent stated that this “historic agreement” sends a clear message to Moscow, emphasizing that the US aims for a peaceful resolution centered on “a free, sovereign, and prosperous Ukraine in the long term.”

Bessent added, “President [Donald] Trump designed this partnership between the American and Ukrainian peoples to make it clear that no state or person financing or supplying the Russian war machine will be allowed to benefit from Ukraine’s reconstruction.”

The US Treasury Department stated that the two sides would work on the final management parameters of the program and “the development of this important partnership.”

Regarding the signed agreement, Ukraine’s First Deputy Prime Minister Sviridenko stated, “Now the document is of a nature that can ensure the success of both our countries—Ukraine and the US.”

Sviridenko noted that the document must be approved by Ukraine’s parliament, the Verkhovna Rada.

According to the agreement, a special fund is being established to which revenues from the use of certain types of natural resources, infrastructure facilities, and some other Ukrainian assets will be transferred for management.

According to a report by the BBC, based on a draft of the document, Washington gains an advantage in signing new contracts for the development of Ukraine’s natural resources.

However, the agreement does not grant the US an automatic right to a share of the revenues derived from Ukraine’s mineral resources or existing infrastructure.

Sviridenko clarified the matter, stating, “All resources on our land and in our territorial waters belong to Ukraine. The Ukrainian state determines where and what will be extracted. Subsoil resources will remain the property of Ukraine.”

She stated that the investment fund would be financed with only half of the revenue generated from “only new” critical materials, oil, and gas projects.

Ukraine’s Economy Minister added that the fund’s revenues and contributions would not be taxed in either the US or Ukraine.

Furthermore, it was emphasized that the agreement would not affect privatization processes or the management of state-owned companies in Ukraine.

According to the document, military aid provided by the US to Ukraine before the agreement was signed is not considered a US contribution.

However, aid allocated by the US after the agreement is signed will be considered an investment.

Previously, US President Donald Trump estimated that US financial and military aid to Kyiv since February 2022 amounted to $350 billion and had insisted on the return of these funds.

Ukrainian President Volodymyr Zelenskiy had opposed this demand.