What is US-Ukraine Reconstruction Fund, key element in new mineral deal
The US Treasury Department announced the US-Ukraine Reconstruction Investment Fund on Wednesday, as the two countries signed a long-anticipated minerals deal. Announcing the signing of the accord, Treasury Secretary Scott Bessent said it showed “both sides’ commitment to lasting peace and prosperity in Ukraine.”
President Donald Trump meets with Ukraine’s President Volodymyr Zelensky at Trump Tower.(AP)
Ukrainian Prime Minister Denys Shmygal said on national television that the agreement was “good, equal, and beneficial.” He further added in a post on Telegram that the two countries would establish a Reconstruction Investment Fund with each side having 50 percent voting rights.
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“Ukraine retains full control over its subsoil, infrastructure and natural resources,” he said. “The fund’s profits will be reinvested exclusively in Ukraine.”
What is the US-Ukraine Reconstruction Investment Fund?
According to a press release by the Treasury Department, the fund will have the “two countries work collaboratively and invest together to ensure that our mutual assets, talents, and capabilities can accelerate Ukraine’s economic recovery.”
“Under the leadership of President Donald J. Trump, the Treasury Department and the U.S. International Development Finance Corporation (DFC) will work together with the Government of Ukraine to finalize program governance and advance this important partnership,” it further added.
The US-Ukraine Reconstruction Fund is a US-controlled investment fund designed to support Ukraine’s long-term reconstruction and modernization following Russia’s invasion.
Purpose: The fund collects profits from US-backed investment projects in Ukraine’s natural resources, such as aluminum, graphite, oil, and natural gas, to finance rebuilding efforts.
US Priority: The US has first claim on profits transferred into the fund, ensuring American investments are prioritized.
Aid Terms: Only future US military assistance counts toward contributions to the fund, with no repayment required for prior aid provided since Russia’s invasion began in 2022.
“Thanks to President Trump’s tireless efforts to secure a lasting peace, I am glad to announce the signing of today’s historic economic partnership agreement between the United States and Ukraine establishing the United States-Ukraine Reconstruction Investment Fund,” Scott Bessent said.
“As the President has said, the United States is committed to helping facilitate the end of this cruel and senseless war. This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term.”
