Ukraine and the United States are negotiating a historic agreement to create a jointly owned investment fund. The goal is to finance the reconstruction of the war-torn country and stimulate its economy. This fund will be fueled by a portion of Ukraine’s future revenues, especially from natural resources such as minerals, oil, and gas.
However, the agreement has sparked debates and concerns in Kyiv. The lack of security guarantees from the US is one of the most sensitive issues for the Ukrainian government, which seeks protection against future threats. Authorities have stated that Ukraine will not sign the document without these formal guarantees, which could complicate the conclusion of the negotiations.
Expectations are that Ukrainian representatives will visit Washington soon to discuss the final details of the agreement. Depending on the outcome of these negotiations, the partnership could mark a milestone in the country’s reconstruction or a significant diplomatic impasse. But how exactly will this fund work? What natural resources are at stake? And what are the risks to Ukrainian sovereignty? Let’s clarify these questions below.
How Will the Investment Fund Work?
The investment fund will be structured as a partnership between the US and Ukraine, aiming to manage and direct resources toward the country’s reconstruction projects. The main idea is to ensure that Ukraine’s economy receives a sustainable boost to recover from the damages caused by the conflict.
For this purpose, part of Ukraine’s future revenues will be allocated to the fund. This model allows the country to have immediate access to capital to rebuild infrastructure, invest in technology, and strengthen strategic sectors. In return, the US would have a role in managing and benefiting from these investments.
However, there are still doubts about how this joint management will be conducted. The division of decision-making between Washington and Kyiv could lead to conflicts regarding the allocation of resources and Ukraine’s sovereignty over its own finances.
What Strategic Minerals Are Included in the Agreement?
One of the most sensitive points of the agreement is the inclusion of strategic minerals, which will be used to fund the investment fund. Ukraine has vast reserves of rare minerals essential for technological and military industries.
Among the key resources are lithium, used in battery production for electronic devices and electric cars, and titanium, essential for the aerospace industry. Other strategic minerals, such as nickel and cobalt, may also be included in the negotiations, attracting interest from various global powers.
This mineral wealth could be an economic advantage for Ukraine, but it also raises concerns about the control of its natural resources. Joint management with the US may prompt questions about how much autonomy Ukraine will maintain over its riches.
Why Is Ukraine Concerned About Security Guarantees?
Despite the economic potential of the agreement, Ukraine is concerned about the lack of formal security guarantees from the US. The country faces a prolonged war and needs military and diplomatic support to ensure its sovereignty.
The nation’s leadership seeks long-term protection commitments from Washington, including military aid and a rapid response in case of new threats. However, so far, the US has not offered such guarantees within the agreement.
This uncertainty could delay the signing of the document, as Ukrainian authorities assert they will not accept the terms without a clear promise of protection from the US.
Will the US Have Control Over Ukraine’s Natural Resources?
The issue of Ukraine’s economic sovereignty is central to this agreement. With the joint management of the investment fund, there are concerns that the US may have indirect control over the country’s natural resources.
Although Ukraine will formally remain the owner of its minerals and other wealth, US influence in decision-making could impact the allocation of these resources. This raises questions about the degree of economic independence that Kyiv will maintain.
This dynamic generates criticism, especially from political sectors that fear Ukraine could become overly dependent on the US, potentially relinquishing part of its economic and political sovereignty.
When Will the Agreement Be Signed?
Ukrainian representatives are expected to travel to Washington in the coming weeks to negotiate the final details of the agreement. However, its signing will depend on the outcome of discussions regarding security guarantees.
If the US agrees to include a firmer commitment to protection, the agreement could be finalized quickly. Otherwise, negotiations may be prolonged, jeopardizing Ukraine’s plans for rapid reconstruction.
Regardless of the outcome, the negotiation between Ukraine and the US represents one of the most decisive moments of the post-war period, with a direct impact on the country’s economic and geopolitical future. If you have any doubts, you can also check out this article.
