KYIV, Ukraine — Ukraine and the United States have reached a preliminary economic agreement that underscores a long-term commitment from the U.S. to assist in rebuilding Ukraine, while deferring discussions on security guarantees until future negotiations.
The finalized agreement, designed to establish a co-owned investment fund, aims to finance the reconstruction of Ukraine’s war-affected economy.
This milestone agreement follows two weeks of intense negotiations between Kyiv and Washington, focusing on U.S. access to Ukraine’s abundant natural resources. Ukrainian President Volodymyr Zelenskyy has emphasized the necessity of security assurances alongside any resource agreements.
President Donald Trump is set to meet with Zelenskyy to officially sign the agreement, cementing a close partnership between the two nations for years to come.
The agreement references Ukraine’s security concerns but leaves those details for subsequent talks between both leaders.
It states the U.S. “supports Ukraine’s efforts to obtain necessary security guarantees to achieve lasting peace,” while committing to long-term financial support for a stable and prosperous Ukraine.
The agreement highlights a mutual interest in protecting investments, asserting that the American public is eager to invest in a free and sovereign Ukraine.
Speaking at a press conference in Kyiv, Zelenskyy expressed the need for clarity about U.S. military support moving forward. He anticipates an in-depth discussion with Trump regarding future collaborations.
Zelenskyy remarked that while the economic agreement might tie into future security discussions, understanding the overarching strategy for Ukraine is essential.
A senior Ukrainian official confirmed that security discussions would progress independently of establishing the joint fund.
The official noted that the fund’s establishment is seen as a vital step to enhance Ukraine’s security amidst ongoing threats from Russia.
Under the agreement, Ukraine is set to contribute 50% of future revenues from its natural assets, including minerals and hydrocarbons, to the fund. Kyiv anticipates that these resources will encourage U.S. support in reaching a fair resolution to ongoing conflict.
The proposal to leverage U.S. involvement in Ukraine’s natural resource management was introduced by Zelenskyy to strengthen Ukraine’s negotiating position with Moscow.
Additionally, Ukraine will allocate half of revenues from infrastructure tied to the extraction and transportation of natural resources to the fund, excluding government budget assets such as state-owned oil and gas entities.
Annual reinvestments from the fund will be directed towards enhancing Ukraine’s safety and prosperity.
It is important to note that while the fund will benefit from revenues generated from natural resources, ownership of those resources will remain solely with Ukraine.
According to a senior official, there will be no U.S. ownership of Ukraine’s mineral resources, with the fund receiving 50% of revenues once resources are developed.
This agreement negates previous demands for Ukraine to pay $500 billion in compensation for U.S. assistance provided thus far. Ukrainian officials clarified that contributions to the fund should not be interpreted as repayment for past support but rather as investment in Ukraine’s future.
The U.S. is committed to maintaining financial support for Ukraine’s stability and economic growth, with potential additional contributions beyond the fund aimed at facilitating Ukraine’s reconstruction.
Ukrainian payments into the fund could offer a pathway to enable future U.S. assistance to be reimbursed in the long run.
Zelenskyy highlighted that Ukraine does not consider itself a debtor to the U.S., expressing gratitude for prior support but affirming that no agreements necessitating repayment for previous assistance were ever established.
Furthermore, the agreement aims to ensure alignment with Ukraine’s obligations to the European Union, as well as any potential conflicts with other financial institutions or creditors.
