The agreement between the governments of the United States and Ukraine “on the establishment of the US–Ukraine Reconstruction Investment Fund” leaves a number of key provisions of bilateral cooperation unspecified and primarily outlines basic political parameters, Yevropeyska Pravda reports, having reviewed the document signed in Washington.
The publication notes that during negotiations, Ukraine and the United States decided to divide the agreement into several components. The bilateral agreement signed on Wednesday in Washington sets out the political framework of cooperation between the two governments concerning subsoil development, mineral sales, and US assistance – including military aid – which Ukraine is to receive in the future.
However, many details, including those of political significance, will be specified in a “technical agreement” that is not yet ready for signature. The agreement signed on Wednesday is only 12 pages long. For comparison, the earlier draft handed over by the US in March, using the same font, exceeded 90 pages.
The parameters of the signed agreement align with most of the key points previously made public by Prime Minister Denys Shmyhal.
Indeed, the document contains detailed assurances that the agreement will not contradict Ukraine’s commitments to the EU or its aspirations for accession. In the event of such a contradiction with the EU accession agreement, the provisions of the agreement with the United States are to be revised.
The document does not subject Ukraine to US jurisdiction – disputes are to be resolved on a parity basis through consultation.
There is no “right of first refusal” for US companies seeking licences to extract mineral resources in Ukraine, but the agreement guarantees that US companies will have access to auctions or negotiations for such minerals on terms no less favourable than those offered to other buyers.
The agreement specifies the list of minerals to which it applies. It covers Ukrainian production of aluminium, antimony, arsenic, barite, beryllium, bismuth, cerium, caesium, chromium, cobalt, copper, dysprosium, erbium, europium, fluorine, gadolinium, gallium, germanium, gold, graphite, hafnium, holmium, indium, iridium, lanthanum, lithium, lutetium, magnesium, manganese, neodymium, nickel, niobium, palladium, platinum, potassium, praseodymium, rhodium, rubidium, ruthenium, samarium, scandium, tantalum, tellurium, terbium, thulium, tin, titanium, tungsten, uranium, vanadium, ytterbium, yttrium, zinc, zirconium, oil, and natural gas – but only with regard to new deposits for which Ukraine will issue licences after the agreement enters into force. This list may be expanded solely by mutual agreement between the parties.
The agreement does not regulate the production or revenues from the extraction of other minerals.
It also does not apply to revenues from Ukrainian infrastructure, as was originally proposed by the United States.
Ukraine will invest in the joint fund through revenues from the sale of licences and royalties from the extraction of the specified minerals, but retains the right to make additional contributions.
The US contribution may include, among other things, new arms supplies to the Ukrainian Armed Forces. “If [… the US government] provides the Government of Ukraine with new military assistance in any form (including transfers of weapons systems, ammunition, technology, or training), the US capital contribution shall be deemed to be increased by the estimated value of such military assistance,” the agreement states.
The publication notes that some provisions previously announced by the Prime Minister are not included in the agreement. For instance, it does not mention the fund’s management principles or the US commitment not to withdraw any income from the fund for 10 years but to reinvest 100% of the proceeds in Ukraine’s reconstruction. These points are expected to be defined in a subsequent agreement currently under preparation.
- Following the signing of the document, US Treasury Secretary Scott Bessent described it as a “historic economic partnership agreement” to create an investment fund for Ukraine’s recovery.