Ukraine, US explore stronger defence ties to boost local industry

Ukrainian Economy Minister Yulia Svyrydenko has said that Ukraine and the US are exploring ways to strengthen cooperation in the defence sector, with particular focus on increasing support for domestic defence industry initiatives in Ukraine.

“Our delegation met with US Treasury Secretary Scott Bessent. We discussed the US-Ukraine Reconstruction Investment Fund, particularly the possibility of expanding its mandate to support projects in Ukraine’s defence industry,” Svyrydenko said, Caliber.Az reports via Ukrainian media. 

She emphasised that the US side showed readiness to engage in such collaboration, signaling growing interest in helping Ukraine strengthen its military-industrial base. In addition to defence-related discussions, Ukrainian officials also called on the US to ramp up sanctions against Russia.

Earlier, Svyrydenko stated that the first meeting of the governing board of the US-Ukraine bilateral fund established under the strategic minerals agreement will take place at the end of July. Kyiv has already proposed expanding the fund’s investment mandate to include the defence industry and military risk insurance. However, US companies are demanding security guarantees before proceeding. On May 23, Svyrydenko announced the official launch of the investment fund under the critical minerals agreement with the US.

She emphasised that Ukraine will contribute 50 per cent of all revenues from new royalties and licenses for mineral extraction to the fund. Both countries will have equal decision-making power in managing the fund. The agreement does not impose direct debt obligations on Ukraine nor include any security guarantees. During the fund’s first 10 years of operation, no dividends will be paid; instead, all profits will be reinvested within Ukraine. Investments from the fund will be directed toward the exploration and processing of critical minerals, as well as the development of infrastructure projects necessary to support the sector.

By Naila Huseynova