Key points of the Subsoil Agreement between Ukraine and the United States: The Cabinet of Ministers published a document
1 May 2025 14:11
The full text of the economic partnership agreement signed by Ukraine and the United States has been released. It provides for the creation of an investment fund for reconstruction. This is reported by "Komersant Ukrainian" with reference to the government portal.
The agreement was signed by the First Vice Prime Minister and Minister of Economy of Ukraine Yulia Svyrydenko and U.S. Treasury Secretary Scott Bessent.
Key provisions of the Agreement
The key goal of the agreement is to establish the U.S.-Ukraine Reconstruction Investment Fund. It will be half Ukrainian and half American. Neither side will have a majority vote. The Fund will attract global investment to rebuild Ukraine.
The signed agreement details guarantees that it will not conflict with Ukraine’s agreements with the EU and Ukraine’s accession aspirations, and that if such a conflict appears in the EU accession agreement, the provisions of the agreement with the United States should be revised.
The Agreement may be amended from time to time in accordance with its provisions. The agreement is valid until Ukraine and the United States agree to terminate it.
What is the Recovery Fund?
It is a limited liability partnership between the two parties:
- the United States – the U.S. Agency for International Development, acting on behalf of the U.S. Government;
- on the part of Ukraine, the Agency for Public-Private Partnership.
These institutions will sign a supplemental agreement (the “Limited Partnership Agreement”) that will regulate specific rules and mechanisms of cooperation.
Establishment of the U.S.-Ukraine Investment Fund
The Fund is being established through a Limited Partnership Agreement between the United States Corporation for International Development (the “U.S. Partner”) and the State Agency of Ukraine for the Support of Public-Private Partnerships (the “Ukrainian Partner”). Both partners operate with the full support of their respective governments.
“It is the policy of the Parties that the Limited Partners shall enter into a Limited Partnership Agreement to establish the U.S.-Ukraine Reconstruction Investment Fund,” the Agreement states.
The Government of Ukraine undertakes to ensure legal stability for the Fund’s activities, in particular by adopting the necessary legislation and providing the Fund with favorable treatment, even in the event of changes in national legislation.
Objectives of the Agreement
- Attracting investments in key sectors of the economy: subsoil, energy, infrastructure and innovative technologies.
- Ensuring transparency and equal conditions for investors.
- Preventing the participation of individuals or states hostile to Ukraine in the reconstruction process.
- Ensuring legal protection for American investors – Ukrainian legislation cannot contradict the provisions of this agreement.
Priority is given to subsoil and infrastructure
The agreement contains important provisions regarding access to Ukrainian natural resources:
- All new licenses and permits for the use of subsoil must contain a condition that investment information be provided to the Partnership.
- If the US side is interested in a project, the subsoil user company is obliged to negotiate in good faith with the Partnership and cannot provide better terms to third parties.
- The United States receives market rights to purchase extracted products under agreed commercial terms.
These provisions cover strategic minerals such as lithium, uranium, titanium, rare earth elements, oil, gas, etc.
Taxation and monetary transactions
Ukraine undertakes to:
- not to impose taxes on income, payments, investments or profit distribution related to the activities of the Partnership;
- guarantee free conversion of hryvnia into US dollars and transfer of funds abroad;
- in case of currency restrictions, to reimburse the Partnership for all losses incurred.
The United States, for its part, undertakes not to impose duties on goods imported to the United States under this agreement, including raw materials extracted in Ukraine.
Contributions and financing
Ukraine contributes to the Fund 50% of all state revenues (royalties, license fees, etc.) related to new upstream projects. The United States can further increase its contribution by providing military assistance to Ukraine, which is counted as equity in the partnership.
Right of first refusal for US investors
The key provision of the agreement is that no other country or company can get more favorable terms than those offered to the American side. This applies to:
- investment projects
- purchase of resources;
- public-private partnerships.
Full ownership and control remain with Ukraine.
All resources on our territory and in our territorial waters belong to Ukraine. It is the Ukrainian state that determines where and what to extract. Subsoil remains in Ukrainian ownership – this is enshrined in the agreement.
The agreement does not provide for any changes in the privatization or management of state-owned companies – they will continue to belong to Ukraine.
Stability guarantees
The Ukrainian side undertakes not to change its legislation to the detriment of the Partnership, and in case of contradictions, the text of the Agreement prevails over the laws of Ukraine. All disputes shall be resolved through mutual consultations.
Dispute Resolution and Amendments
The Parties seek to resolve disputes through consultations and negotiations. The Agreement may be amended by written consent of both parties, and amendments shall enter into force upon approval in accordance with national procedures.
Entry into force and termination
The Agreement shall enter into force upon the exchange of notes on the completion of internal procedures, including ratification by the Verkhovna Rada of Ukraine. It shall remain in force until the Parties agree to terminate it.
Full text of the agreement between Ukraine and the USA
Minerals Agreement covers 57 types of minerals
“Evropeiska Pravda reports that during the negotiations, the parties decided to divide the agreement into several separate parts. The agreement signed on Wednesday establishes the political framework for cooperation, and most of the key aspects of cooperation will be detailed in a separate technical agreement, the text of which is not yet ready for signing.
The agreement specifies the list of minerals to which it applies.
The Minerals Agreement covers 57 types of minerals. Assets related to natural resources means areas, reserves and deposits on the territory of Ukraine of aluminum, antimony, arsenic, barite, beryllium, bismuth, cerium, cesium, chromium cobalt, copper, dysprosium, erbium, europium, fluorine, fluorspar, gadolinium, gallium, germanium, gold, graphite, hafnium, holmium, indium, iridium, lanthanum, lithium, lutetium, magnesium manganese, neodymium, nickel, niobium, palladium, platinum, potassium, praseodymium, rhodium, rubidium, ruthenium, samarium, scandium, tantalum, tellurium, terbium, thulium, tin, titanium, tungsten, uranium, and vanadium, vanadium, ytterbium, yttrium, zinc, zirconium, oil, natural gas (including liquefied natural gas) and other minerals or hydrocarbons otherwise agreed upon by the principals.
It also stipulates that in the event of new military assistance from the United States (including the transfer of weapons systems, ammunition, technology, or training), the partner’s capital contribution will be considered increased by the estimated value of such military assistance.
Earlier, the Minister of Economy of Ukraine Yulia Svyrydenko explained how the Fund will work.
The United States makes a contribution to the Fund. In addition to direct funds, they can also contribute NEW assistance, such as air defense systems for Ukraine.
Ukraine contributes 50% of the state budget revenues from NEW rents on NEW licenses for NEW fields. Ukraine can also make additional contributions beyond this basic one, if it deems it necessary. We are talking about cooperation for decades to come.
The Fund then invests in mining and oil and gas projects, as well as related infrastructure or processing. Ukraine and the United States will jointly determine the specific investment projects to which the funds will be allocated. Importantly, the Fund can invest exclusively in Ukraine.
