US-Ukraine Minerals Deal: US Gets 50% of Heavy Industry Revenues, Must Invest in Ukraine’s Security, Recovery

[UPDATES] As of 8 p.m. Kyiv time on Feb. 26, Ukraine’s government approved the signing of the mineral deal between the US and Ukraine, Prime Minister Denys Shmygal reported. 

The agreement will include six main points:

• Joint Fund Creation – Ukraine and the US will set up the Reconstruction Investment Fund, which both governments will own and manage together.
• Resource Ownership – Ukraine will keep full ownership of its natural resources and assets. They will not be transferred to the US or any other party.
• Revenue Sharing – Ukraine will contribute 50% of future revenues from its natural resources to the Fund.
• US Contributions – The US will provide financial aid, investments, and other essential assets to help Ukraine rebuild.
• Exclusive Use for Ukraine – The Fund’s money will be used only for Ukraine’s reconstruction projects, ensuring benefits for future generations.
• European Commitments – The agreement aligns with Ukraine’s European integration process, meaning it won’t conflict with EU commitments.

Kyiv agrees to allocate 50% of future revenues generated from minerals, hydrocarbons, oil, natural gas, and other extractive materials to a joint US-Ukraine fund in the new minerals deal with the US.

The deal, reportedly agreed by US and Ukrainian officials, should “promote the security, protection, and prosperity of Ukraine,” according to the final draft published by European Pravda. 

The deal, which was called a “framework” for a wider agreement, stipulates that a portion of contributions to the fund must be reinvested into Ukraine’s economic recovery “at least once a year” in return, and the US must help “establish lasting peace” in Ukraine – if it gets signed, potentially as soon as Friday.

According to European Pravda, the deal won’t need ratification from Ukraine’s parliament, the Verkhovna Rada. 

However, the subsequent document outlining how the “Reconstruction Investment Fund” works will require the nod from parliament.

President Volodymyr Zelensky said the minerals deal shouldn’t burden Ukraine with new loans. The new version also omitted the requirement that Ukraine repay US aid received after Russia’s full-scale invasion.

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What resources would be part of the deal?

According to the deal, the US and Ukraine will establish a “Reconstruction Investment Fund,” which would be governed by representatives from both countries. 

The fund ownership would be split between Ukraine and the US and operate under US law. The two countries would create a separate agreement about its structure and management. 

Based on the draft deal, Ukraine would contribute 50% of all future revenues “of all relevant natural resource assets” owned by the Ukrainian state to the fund, including: 

• Deposits of minerals
• Hydrocarbons
• Oil
• Natural gas
• “Other extractive materials”
• Infrastructure related to natural resource assets (such as liquefied natural gas terminals and port infrastructure)

Also, the deal pertains to future income – it doesn’t include “current revenue sources” already part of the Ukrainian government’s revenues. 

What would the Reconstruction Investment Fund do?

According to the document, if the deal goes through, the US-Ukraine Reconstruction Investment Fund will collect income from Ukraine’s minerals and invest them back into Ukraine at least once a year “to promote the security, protection, and prosperity of Ukraine.”

The deal says a safe and economically developed Ukraine is in America’s interest. 

“The government of the United States will support long-term financial commitments to the development of a stable and economically prosperous Ukraine,” the draft says.

Stakes in the fund cannot be transferred to another party without mutual consent.

“None of the Participants will sell, transfer or otherwise dispose of, directly or indirectly, any part of its interest in the Fund without the prior written consent of the other Participant,” the draft says.

Doesn’t stop Ukraine’s EU path

The draft says Ukraine’s path to the EU and other international agreements can’t be violated. 

Ukraine also calls for “special emphasis” on “control mechanisms that will prevent the weakening, violation, or circumvention of sanctions” in the draft.

After signing the mineral deal, Washington and Kyiv would create working groups chaired by representatives from the US Treasury Department and Ukraine’s Ministry of Economy and Ministry of Finance to implement it. 

According to European Pravda’s document, the final draft of the deal should be signed by Ukraine’s Minister of Economy Yulia Svyrydenko and US Treasury Secretary Scott Bessent.