The United States and Ukraine have reached an initial agreement to jointly invest in Ukraine’s critical minerals sector. The framework, which still requires further negotiations, establishes a reconstruction investment fund with shared U.S.-Ukraine ownership. Under the terms, Ukraine will contribute 50% of future revenues from state-owned mineral, oil, and gas assets to the fund, excluding existing operations like Naftogaz and Ukrnafta.
The goal of the agreement is to attract private sector investment to develop Ukraine’s vast mineral resources, but significant hurdles remain. Ukraine lacks modern geological mapping of its rare earth deposits, and key infrastructure, including energy grids, has been severely damaged by war. Additionally, security risks and political uncertainty may deter long-term investors.
Unlike previous proposals, the deal does not require Ukraine to use its mineral wealth to repay U.S. military aid, nor does it provide security guarantees. Instead, it assumes that U.S. financial stakes in Ukraine’s resources will create an incentive for continued support. However, tensions between President Trump and President Zelensky over Ukraine’s wartime policies could complicate future negotiations.
While the agreement signals the U.S. administration’s focus on securing critical minerals, its success will depend on overcoming economic and geopolitical challenges in the region.
