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Ukraine-US Minerals Agreement Ratified by Parliament

by Roman Cheplyk
Thursday, May 8, 2025
2 MIN
Ukraine-US Minerals Agreement Ratified by Parliament

338 MPs back 50-50 Reconstruction Investment Fund that channels new U.S. capital—potentially including military aid—into critical-resource projects while keeping Kyiv’s control over subsoil

Key Vote

  • 338 deputies of the Verkhovna Rada approved the law ratifying the Agreement on the Establishment of the U.S.–Ukraine Reconstruction Investment Fund (often called the Minerals Agreement).

  • Ratification completes Ukraine’s internal procedures; the accord will enter into force after both governments exchange diplomatic notes.

Five Core Principles (outlined by Prime Minister Denys Shmyhal)

  1. Equality – Fund capital and voting rights split 50 % Ukraine / 50 % United States.

  2. Ukrainian control – Kyiv retains sovereign authority over subsoil, infrastructure and natural resources.

  3. Investment, not debt – capital is equity; no new sovereign borrowing.

  4. Off-take guarantees – “take-or-pay” contracts secure long-term buyers for extracted and processed materials.

  5. EU compatibility – provisions align with Ukraine’s European-integration commitments.

How the Fund Will Operate

Parameter Detail
Capital sources U.S. share may consist of direct financing or book-valued military assistance; Ukraine contributes 50 % of royalties, license fees and PSA income from new critical-mineral projects
Mandate Finance extraction, processing and infrastructure for 57 listed critical minerals plus selected oil & gas assets
Governance Six-member board (three Ukrainian, three U.S.) → decisions by consensus
Launch window Government expects full operational status within a few weeks

Strategic Impact

  • Accelerates investment in Ukraine’s untapped critical-material reserves—titanium, lithium, graphite, rare earths and more.

  • Unlocks additional U.S. defense support that can be counted as capital, bolstering both economic recovery and security.

  • Signals stability to global investors by embedding U.S. Development Finance Corporation oversight and equal governance.

Next Steps

  • Exchange of ratification notes → Fund registration and board appointments.

  • Passage of companion Budget Code amendments to channel earmarked mining revenues into the Fund’s special account.

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