Ukraine and the United States have reached significant agreements regarding the creation of a joint investment fund for mineral resources development, a topic that has already been widely discussed at the diplomatic level
Details of this agreement, which is set to fundamentally change the approach to managing the country's mineral resources, were disclosed by Ukrainian Prime Minister Denis Shmyhal during a national telethon broadcast on April 30. Although this project has remained under close public scrutiny, its key provisions now feature a new vision based on equality and partnership between the two nations. According to the Ukrainian government head, there was previously an idea, supported by American colleagues, that envisioned almost unilateral U.S. control over the fund and subordination to U.S. laws in case of any disputes. However, intensive negotiations have revised this concept: now, the management of the fund will be carried out on a parity basis, with an equal voice for both sides. “The fund's management council includes eight representatives: three Ukrainian and three American, with equal voting power,” the Prime Minister explained. “This means that Americans will not have a decisive vote, and decisions will be made on the principle of equality.” Another important achievement for the Ukrainian delegation was that the fund will not fall under U.S. jurisdiction. This change alters the concept of control and guarantees for Ukraine and demonstrates the parties’ willingness to create a genuinely equal partnership instrument. “We removed from the agreement a clause that in the previous draft allowed for dispute resolution in U.S. courts under their legislation,” Shmyhal added. He stated that this was done to strengthen partnership and trust between the two countries. The adjustment also pertains to the financial model of the fund. From now on, the Prime Minister said, within the first ten years of its establishment, expenses and profits generated by the fund will stay in Ukraine and be directed toward development projects. “During this period, the U.S. will not have the right to withdraw any profits from the country. All income will be systematically reinvested into restoring infrastructure, the economy, and social needs of Ukraine,” Shmyhal emphasized. Regarding the mechanism for attracting funding, the Prime Minister noted that the fund could involve other international partners. As agreed by the management, investors from other countries could join the fund, and the investments received would support Ukrainian projects. This opens new opportunities for attracting additional resources and increasing mineral development efforts. The size of Ukraine’s contributions will be determined by a formula based on 50% of the revenues from new resource rents. This scheme aims to balance the interests of Ukraine and its partners while ensuring stability and transparency of fund operations. Importantly, decisions on profit distribution will be deferred for at least ten years, serving as an additional mechanism to guarantee long-term stability and development. The Prime Minister stressed that this project is a significant victory for Ukrainian diplomacy and public administration. “We have managed to lay the foundation of an equal partnership that considers our interests and secures oversight over mineral resources for future generations,” Shmyhal concluded. As a result, the country will not only have the opportunity to increase investment potential in mineral resource management but also strengthen sovereignty in this vital sector. It is expected that the fundamental agreements reached between Ukraine and American colleagues will be signed in the coming days, opening a new chapter in the history of mineral resource management and partnership between Kyiv and Washington. These decisions provide a solid basis for further sector reforms and investment attraction efforts that will have a decisive impact on Ukraine’s economic and social future.