May 2025 – The intergovernmental Agreement on the establishment of the US-Ukraine Reconstruction Investment Fund (Fund), signed on April 30, 2025, in Washington, D.C. (Agreement) reflects a reset of the US-Ukraine geopolitical relationship and looks to provide a strategic blend of economic investment and security cooperation.
First and foremost, the Agreement signals US commitment to a sovereign Ukraine to the international community. It provides the US with a direct stake in Ukraine's economic reconstruction by creating the legal foundation for an economic bond between Ukraine and the US. It seeks to reflect the Trump administration’s market-driven approach to rendering foreign assistance by triggering co-investment mechanisms that should lead to a win-win strategy.
The Agreement positions Ukraine as a potentially key player in global (and, primarily, European) supply chains by leveraging Ukraine’s reserves of critical minerals (e.g., lithium, cobalt) and energy resources, and its alignment with Ukraine’s EU accession process strengthens the country’s integration into the Western economic architecture.
By excluding entities complicit in Russia’s war against Ukraine from reconstruction benefits, the Agreement sends a clear message of accountability to the international community.
Key features:
The Fund will be formed as a limited partnership (LP) between the US International Development Finance Corporation (DFC) and Ukraine’s Agency on Support Public-Private Partnership.
Revenue-sharing model: Ukraine contributes 50% of royalties from new or unexploited natural resource licenses and/or production sharing agreements (PSAs). US makes financial and other contributions that will formalize the formation of the Fund (LP Agreement). The LP Agreement will reflect management and operational details. Crucially for Ukraine, the Agreement explicitly specifies that any forthcoming US military aid to Ukraine can be counted toward the US capital contributions to the Fund.
Investment and off-take rights: The Fund grants preferential access to US investors regarding investment opportunities and market-based off-take agreements for Ukraine’s resources. The interests of EU investors will be secured equally with those of US investors.
Tax and currency protections: Ukraine exempts the Fund from taxes and ensures free Hryvnia-to-US Dollar convertibility. The U.S. will not impose tariffs on the import of Ukrainian goods obtained through the Agreement.
Legal alignment: Once the Agreement is ratified by the Verkhovna Rada of Ukraine, its provisions will take precedence over any and all conflicting provisions of Ukrainian domestic laws.
Disputes: Any possible disputes between the parties will be resolved through consultation.
The term of the Agreement is unlimited.
We continue to monitor the developments and will cover the LP and other agreements in due course.