The United States and Ukraine have announced the creation of a joint fund for investment in the extraction of critical minerals, energy, and the reconstruction of infrastructure. It is being formed through equal contributions from both sides — $75 million each from the U.S. government and the Ukrainian government. On the American side, the initiative is led by the U.S. International Development Finance Corporation (DFC), which has been granted a leading role on the fund’s supervisory board.
The establishment of the fund is the result of a minerals agreement signed in the spring after lengthy negotiations, which provides the United States with special access to investment projects in Ukraine’s natural resource sector. According to the arrangements, half of the revenues from licenses for new deposits and royalties from extraction will be directed into the fund and later reinvested into the recovery of Ukraine’s economy. Profits will be shared between Ukraine and the United States.
Official Kyiv views the agreement as strategic, since it helps maintain Washington’s interest in Ukraine even under wartime conditions. Prime Minister Yulia Svyrydenko described American investments as “a sign of trust and long-term cooperation,” emphasizing that they can serve as a guarantee of security both for Ukraine and for American business in the country.
The American side has also openly stated that it seeks to turn this initial capital into a catalyst for private investment. According to DFC representatives, U.S. involvement has not only economic significance but will also help create jobs, restore critical infrastructure, and strengthen trade ties between the two countries.
At the same time, experts warn of significant challenges. Among them are complex licensing procedures, outdated geological surveys that complicate the assessment of the true value of Ukraine’s subsoil, and, above all, the risks of war. Russian forces currently control part of Ukraine’s mineral resources and continue advancing in the east of the country. In recent months, they have carried out several strikes near Western-linked facilities, which could deter potential investors.
Despite this, Ukraine has already announced its first tender — for the development of the Dobra lithium deposit, one of the largest in the country. Several companies, including TechMet, which is partially owned by the U.S. government, have confirmed their participation. Other promising projects are also being considered in central regions, where deposits of titanium and graphite are located.
The new fund has the potential to serve as both a financial and political signal: America is not stepping back from Ukraine but instead is combining support with economic interests. This aligns with the new business-oriented logic of Donald Trump’s administration, which focuses on investments and sales rather than direct grants and non-repayable aid.
Author: Diana Khudko