Draft of the New Minerals Agreement Between the U.S. and Ukraine: The U.S. Secures % Economic Rights

Key Chapter Title List

1. Core Terms for the Establishment of the U.S.-Ukraine Reconstruction Investment Fund
2. Agreement on 100% Economic Interest Ownership of the Fund
3. Explanation of the Fund's Joint Management Mechanism
4. Rules for the Distribution of Ukrainian Mineral and Oil & Gas Resource Revenues
5. Provisions for the Directed Allocation of Other Income Sources
6. Revenue Adjustment Mechanism Following the Liberation of Russian-Occupied Facilities
7. Ukraine's Fund Contribution Threshold and Adjustment Rules
8. Relevant Agreements on U.S. Financial Commitments to Ukraine
9. Explanation of the Agreement's Compatibility with Ukraine's International Obligations
10. Responsibility and Process for Drafting Subsequent Specialized Agreements
11. Background Review of the U.S.-Ukraine Mineral Cooperation Agreement
12. Negotiation Dynamics Between the Trump Administration and the Zelenskyy Government

Document Introduction

This report is based on the updated draft text of the U.S.-Ukraine mineral agreement as of February 21, 2025. It focuses on the core issue of the Ukraine Reconstruction Investment Fund proposed by the two countries, systematically analyzing the equity distribution, operational mechanisms, and policy impacts under the agreement's framework. Against the backdrop of the ongoing Russia-Ukraine conflict, the United States and Ukraine seek to link economic reconstruction through mineral resource cooperation, making this agreement a key vehicle for deepening their partnership.

The core content of the agreement shows that the U.S. and Ukraine will jointly establish the Ukraine Reconstruction Investment Fund, with the United States holding 100% of the fund's economic interest, while both countries will jointly manage the fund. The fund's core funding sources include 50% of the net revenues from Ukraine's mineral and oil & gas resources. These funds will be directed towards Ukraine's economic reconstruction areas such as mining and processing infrastructure and ports, with the goal of leveraging two dollars in foreign direct investment for every dollar invested, aiming to restore Ukraine's GDP to its level at the end of 2021.

The agreement clarifies multiple revenue allocation rules: in addition to mineral and oil & gas resources, the U.S. and Ukrainian governments will separately determine the directed injection methods for other Ukrainian income sources; if facilities occupied by Russia at the time of signing are liberated, the proportion of their related revenues injected into the fund may exceed 50%. Ukraine must continue contributing to the fund until a predetermined amount is reached. Non-credit economic assistance provided by the U.S. after the agreement's signing will correspondingly increase Ukraine's contribution threshold, while the U.S. commits to separately determining the specific amount of its financial support to Ukraine.

Regarding the agreement's compatibility and advancement process, the fund agreement explicitly states that it does not violate Ukraine's existing international obligations nor affect its future process of joining the EU or other international organizations. Both countries have committed to immediately initiating the drafting of subsequent specialized agreements, with Ukraine's Ministry of Economy taking on the specific drafting responsibility.

The agreement's advancement process exhibits characteristics of multiple rounds of negotiation: On February 13, 2025, U.S. Treasury Secretary Scott Bessent visited Kyiv, and the U.S. side submitted the first draft of the "Partnership Agreement," proposing sustained aid to Ukraine in exchange for investment in its mineral resources; previously, the Trump administration had proposed acquiring a 50% stake in Ukraine's rare earth minerals, which was rejected by the Zelenskyy government; on February 15, Zelenskyy clearly stated he had not abandoned the agreement but conditions for signing were not yet met; on February 20, Trump claimed Ukraine had canceled the rare earth cooperation agreement; until February 21, the agreement text was updated and its core terms disclosed.