Ukraine-USA Investment Fund Launches Pilot Projects Under Historic Minerals Agreement

The Ukraine-USA Reconstruction Investment Fund has officially launched its first pilot projects following the establishment of its Steering Council, marking a pivotal milestone in the implementation of the historic minerals agreement signed between the two nations earlier this year. Ukrainian Prime Minister Yulia Sviridenko confirmed the development via her official Telegram channel, signaling the beginning of what experts are calling one of the most significant bilateral economic partnerships of the 21st century.

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Historic Agreement Takes Shape

The Steering Council meeting, held with equal representation from both nations, brings together senior officials from the United States and Ukraine to oversee what industry analysts estimate could be a vast array of critical minerals with an estimated value in excess of US$26 trillion. The American delegation includes Finance Secretary Scott Bessent, DFC Chief Investment Officer Connor Coleman, and DFC Vice President and General Counsel Robert Stebbins, while Ukraine is represented by Minister of Economy, Environment and Agriculture Oleksiy Sobolev, Deputy Minister Yehor Perelyhyn, and State Secretary of the Ministry of Foreign Affairs Oleksandr Karasevych.

The council’s first meeting resulted in the approval of operating rules, establishment of various committees, and authorization to open the Fund’s bank accounts. Most significantly, the council approved the appointment of both an administrator and investment advisor, setting the stage for the first major investments expected to launch by the end of September.

Strategic Resource Partnership Addresses Global Supply Chain Vulnerabilities

The market for critical minerals has doubled to over $320 billion in the last five years and is foreseen to double again in the next five, making Ukraine’s resource wealth particularly valuable in the current geopolitical landscape. The partnership addresses growing concerns about supply chain dependency on non-democratic nations, with China attaining global dominance in critical minerals through strategic long-term investments, controlling 85-90% of global rare earth elements from mining to refining and 92% of global manufacturing of rare earth element magnets.

Ukraine’s strategic importance cannot be overstated. Ukraine holds deposits of 22 out of 34 minerals the EU classifies as critical, including substantial reserves of lithium, titanium, uranium, and graphite. The country’s lithium reserves are largely untapped and considered one of Europe’s largest, at an estimated 500,000 tonnes, while it maintains Europe’s largest deposits of uranium, an estimated 2 percent of world reserves.

Investment Structure and Economic Framework

The agreement establishes a 50-50 partnership structure that represents a significant diplomatic victory for Ukraine. Ukraine will maintain complete ownership over its natural resources and infrastructure, including decisions on what to extract. The United States–Ukraine Reconstruction Investment Fund will be jointly managed by both countries on an equal partnership basis. Crucially, current projects—such as the country’s largest oil and gas producers, Naftogaz and Ukrnafta—are exempt from contributing to the fund.

Under the agreement’s terms, Ukraine will contribute 50 percent of revenues from new natural resource extraction projects, while the United States will provide both direct financial contributions and military assistance, including advanced air defense systems. This structure ensures that Ukraine has no debt obligations to the United States, addressing earlier concerns about the agreement potentially burdening Ukraine with repayment requirements for past U.S. aid.

The fund will be controlled by a company with equal representation of three Ukrainian and three American board members, who will work together through a collaborative process to make decisions for allocation of fund resources. Additionally, if the United States decides to acquire these resources for ourselves, we will given first choice to either acquire them or designate the purchaser of our choice, providing strategic supply chain security for American interests.

Wartime Context and Resource Control

The timing of this partnership is critical, as Russia controlled between 50 and 100 percent of Ukraine’s reserves of lithium, tantalum, cesium, and strontium by the end of 2022. Russian occupation of eastern Ukraine has particularly impacted access to mineral-rich territories, with many of Ukraine’s most valuable deposits located in contested regions. Most of these minerals span Luhansk, Donetsk, Zaporzhizhia, Dnipropetrovsk, Korovohrad, Poltava and Kharkiv, areas that have seen significant military activity.

Despite these challenges, Ukraine has continued to operate mining activities in secure regions while preparing for expanded operations post-conflict. The government has been actively auctioning exploration permits for minerals like lithium, copper, cobalt, and nickel, presenting attractive investment opportunities as part of broader plans to advance Europe’s green transition and boost Ukraine’s economic recovery.

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Economic Impact and Market Implications

The partnership comes at a time when global demand for critical minerals is surging due to the transition to renewable energy and electric vehicles. Ukraine’s resource potential for green technology is one of the richest in the world, with deposits of 24 out of the European Union’s 34 critical minerals. Industry experts suggest that Ukraine’s discovered reserves of lithium, graphite, nickel and iron ore will be enough to produce Li-batteries with a total capacity of 1,000 gigawatt hours (GWh) to support the manufacturing of around 20 million electric vehicles.

The economic significance extends beyond individual minerals. According to a 2023 study by Forbes Ukraine, the country’s rare earth and other critical minerals could be worth as much as $14.8 trillion, though precise valuations remain challenging due to fluctuating commodity prices and the need for comprehensive geological surveys in post-conflict conditions.

Technical Implementation and Next Steps

Prime Minister Sviridenko indicated that DFC representatives will visit Kyiv in September to discuss priority projects for initial investments. The focus will likely include the development of extraction capabilities in secure regions while planning for expanded operations as security conditions improve.

The partnership is expected to leverage existing Ukrainian expertise and infrastructure. The state-owned United Mining and Chemical Company, one of the world’s largest producers of titanium raw materials, was approved for privatization auction on October 11, 2024 by the Government of Ukraine for approximately EUR 92.2 million, with additional investment commitments for technical modernization.

Geopolitical Implications and International Response

The agreement represents a significant shift in U.S.-Ukraine relations under the Trump administration and has broader implications for global mineral supply chains. The creation of the US–Ukraine Reconstruction Investment Fund marks a significant shift in the Trump administration’s relationship with Kyiv and its position regarding the Russia–Ukraine war.

Secretary of State Marco Rubio characterized the agreement as “a step toward ending the war,” while Treasury Secretary Scott Bessent emphasized that “this agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term”.

The partnership also serves as a template for similar arrangements, with the United States and DRC also in discussions on minerals cooperation, which is expected to lead to increased U.S. investment in the DRC’s mining sector as part of broader efforts to diversify critical mineral supply chains away from Chinese dominance.

Industry Analysis and Investment Outlook

Market analysts view the agreement as addressing critical vulnerabilities in Western supply chains while providing Ukraine with essential reconstruction funding. The 50-50 partnership structure has been praised as more equitable than initial proposals, which would have given the United States more controlling interests in Ukrainian resources.

Ukraine seems to have pulled off some seriously tough negotiating with the Trump administration. Past proposals from Washington reportedly saw the United States taking partial or total ownership of broad swaths of Ukraine’s natural resources and infrastructure… Now, Ukraine retains full ownership of its assets and has turned the deal into a joint investment fund toward the country’s future reconstruction.

However, challenges remain significant. The success of the partnership will largely depend on private sector investment, as Trump cannot force private U.S. firms to make expensive and potentially unprofitable investments. Security concerns continue to affect investor confidence, with ongoing military activities in mineral-rich regions creating operational challenges.

Long-term Strategic Vision

The partnership extends beyond immediate resource extraction to encompass broader economic development goals. Natural resource projects will include minerals, hydrocarbons, and related infrastructure development, supporting comprehensive reconstruction efforts across multiple sectors. For additional context on Ukraine’s mineral mapping and deposits, see this visual overview.

Ukrainian officials have emphasized that this represents a long-term commitment to rebuilding the nation’s economy on a sustainable foundation. The agreement’s structure ensures that Ukraine will maintain full ownership and control of the country’s resources and will determine what and where minerals may be extracted, preserving national sovereignty while accessing international investment and expertise.

Conclusion

As the Ukraine-USA Investment Fund moves from framework to implementation, the coming months will be critical in determining whether this ambitious partnership can deliver on its promises. With pilot projects now launching and September meetings scheduled to identify priority investments, the partnership represents both a significant diplomatic achievement for Ukraine and a strategic move by the United States to secure access to critical minerals essential for national security and economic competitiveness.

The success of this endeavor will likely influence future international partnerships in the critical minerals sector and could serve as a model for similar agreements between Western nations and resource-rich countries seeking to reduce dependence on authoritarian regimes. As global competition for critical minerals intensifies, the Ukraine-USA partnership may prove to be a defining moment in the reshaping of international supply chains and economic alliances in the post-Cold War era.

The Ukraine-USA Reconstruction Investment Fund is expected to begin operations in Q4 2025, with initial pilot projects focusing on titanium, lithium, and uranium extraction in secure regions of Ukraine. Further details on specific investment targets will be announced following the September DFC delegation visit to Kyiv.

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By: Montel Kamau

Serrari Financial Analyst

4th September, 2025