Ukraine and US reach agreement on investment fund for reconstruction
The governments of Ukraine and the United States have signed an agreement for the establishment of an investment fund aimed at reconstructing the war-torn country. The memorandum, signed by Julia Swiridenko, the first deputy Prime Minister and Minister of Economy of Ukraine and the US side, emphasizes that the United States will provide Ukraine with significant financial and material support.
The details of the investment fund, which is intended to aid in the reconstruction of Ukraine, have been revealed. The Ukraine will contribute 50% of all revenues from new infrastructure and mining projects into the fund, which will be controlled by the US-based International Development Finance Corporation (DFC). The US contribution to the fund will be considered as their financial aid and weapons supplies to Ukraine.
However, further details of the fund’s operations, as well as other terms of the agreement, remain unclear. The US is demanding a “right of first refusal” for investments in all infrastructure and mineral projects, with the right to all profits and additional four percent interest per year until the US investments are repaid. The US also wants the right to prioritize the acquisition of resources and Ukraine is prohibited from selling resources to countries viewed as “strategic competitors” by the US.
The agreement is yet to be officially finalized and the next round of negotiations is set to take place next week in Washington. The Ukrainian Prime Minister Denis Schmygal is expected to meet with US Treasury Secretary Scott Bessent to finalize the technical details of the deal. The agreement is expected to be signed shortly after the negotiations are concluded.
Swiridenko commented on the signing of the memorandum, stating that “there is still much to do, but the current pace and significant progress suggest that the document will be highly beneficial for both countries.” Trump had previously claimed that the mineral agreement will be signed next Thursday, indicating that it will be finalized soon.