Ukraine-US Minerals Agreement Unlocks Fresh Defense Support

What Happened?

• The Verkhovna Rada is expected to ratify the Agreement on the Establishment of the U.S.–Ukraine Reconstruction Investment Fund—informally the Minerals Agreement—signed on 1 May 2025.

• First Deputy Prime Minister & Economy Minister Yuliia Svyridenko told reporters the deal “opens the way to new defense support,” because U.S. military assistance can be booked as the American share of the fund’s capital.

Why It Matters

1. Direct path to additional weapons and security aid: equipment supplied by Washington will now qualify as a U.S. contribution.

2. No new debt for Kyiv: the fund brings equity investment, not loans.

3. Balanced governance: all decisions require consensus; voting rights are 50 % Ukraine / 50 % United States.

4. Control over resources remains Ukrainian: subsoil licenses, infrastructure and natural assets stay under Ukraine’s sovereign jurisdiction.

5. EU integration protected: the treaty explicitly states it will not hinder Ukraine’s accession process.

Five Key Principles (per Prime Minister Denys Shmyhal)

• Equality – 50/50 ownership and equal voting rights.

• Preservation of control – Ukraine keeps authority over its natural resources.

• Investment over debt – no sovereign borrowing obligations added.

• Commercial off-take guarantees – “take-or-pay” contracts secure buyers for future output.

• EU compatibility – terms aligned with European law.

How the Fund Will Work

Next Steps

• Parliamentary ratification → exchange of diplomatic notes → entry into force.

• Passage of a companion Budget Code amendment will route 50 % of rents, license fees and PSA proceeds on new projects into a special state fund before transfer to the investment vehicle.