WP: Ukraine, US agree on joint investment fund to boost reconstruction, tap natural resources

Ukraine and the United States have reached a landmark agreement to establish a joint investment fund aimed at rebuilding Ukraine’s war-torn economy and unlocking its largely untapped mineral wealth.

According to Ukrainian Economy Minister Yuliia Svyrydenko, both countries will have an equal say in managing the fund, which will be backed by the U.S. International Development Finance Corporation, Caliber.Az reports, citing The Washington Post.

The initiative is designed to attract investment and technology from the United States and Europe, with a particular focus on industries critical to reconstruction, such as mining, energy and infrastructure.

The fund will be capitalised through multiple channels. Ukraine will contribute 50% of all future profits generated from state-owned natural resources, while the U.S. will provide funding, equipment, and military assistance, including air defence systems that Kyiv says are urgently needed.

“No profits will be extracted from the fund for the first decade,” Svyrydenko said, emphasising that long-term reinvestment is key to sustainable growth. Contributions will be reinvested in projects spanning oil and gas, infrastructure, and critical minerals.

The agreement comes after a previous U.S. proposal — reportedly advanced by Trump administration officials — sought $500 billion in profits from Ukraine’s mineral sector in exchange for wartime support. President Volodymyr Zelenskyy rebuffed the plan, calling it an unacceptable burden on future generations.

Ukraine’s natural resource potential remains largely underdeveloped, hampered by outdated state policies, limited geological data and ongoing conflict. Analysts note that while reserves of key minerals like titanium and lithium are significant, an estimated 40% remain inaccessible due to Russian occupation.

In 2021, Ukraine’s minerals industry contributed 6.1% of GDP and accounted for 30% of national exports. The new fund is seen as a step towards revitalising the sector and safeguarding strategic assets before further Russian advances.

By Aghakazim Guliyev