US, Ukraine each pledge $75 million to joint reconstruction fund

The United States and Ukraine have agreed to contribute $75 million each to a joint fund aimed at supporting Ukraine’s reconstruction, with a focus on critical minerals, hydrocarbons, and infrastructure development.

According to Caliber.Az, the announcement was made in a statement by the US International Development Finance Corporation (DFC).

“The US International Development Finance Corporation (DFC) today announced the allocation of $75 million to the US-Ukraine Reconstruction Investment Fund. The DFC's seed capital will match investments by the Ukrainian government, resulting in a total of $150 million,” the organisation said in a press release.

The contributions will serve as seed capital for investments in Ukraine’s key sectors, including critical minerals, hydrocarbons, and the infrastructure necessary to support them. The DFC added that these investments are expected to strengthen US natural resource supply chains while promoting economic growth, security, and innovation in the United States.

The initiative builds on an agreement signed by Ukraine and the US on the night of April 30 to May 1, establishing a joint Recovery Investment Fund with equal participation from both sides.

Following this, on May 8, the Verkhovna Rada ratified a bilateral agreement on mineral resources that sets political parameters for cooperation between the two governments. The agreement covers the development and sale of mineral resources, as well as US support, including future military assistance, and encompasses 57 types of minerals.

President Volodymyr Zelenskyy further ratified an agreement on rare earth metals with the US on May 12, and the US-Ukraine Investment Fund was officially launched on May 23.

Ukraine possesses substantial reserves of rare earth metals, essential for modern technologies, primarily concentrated in the Zhytomyr and Cherkasy regions and the Eastern Azov area. Moreover, temporarily occupied territories contain critical materials valued at approximately $350 billion. Reports indicate that up to 20% of Ukraine’s mineral resources, including about half of its rare earth deposits, are currently under Russian occupation.

By Tamilla Hasanova