This latest development could be a game changer. It’s what Donald Trump and his team have been waiting for.
And the Trump administration just signed a deal that has major global consequences.
A New Era of Partnership: US and Ukraine Launch Joint Fund for Reconstruction
On Wednesday, the Trump administration and the Ukrainian government unveiled a groundbreaking agreement to establish a joint investment fund aimed at revitalizing Ukraine’s war-ravaged economy. This innovative initiative targets the development of Kyiv’s oil, gas, and rare mineral sectors, signaling a bold step toward economic recovery and mutual prosperity.
Ukraine’s Economy Minister, Yulia Svyrydenko, announced the deal on X, emphasizing the equal partnership at the heart of the fund. “Together with the United States, we will create a fund that will attract Western investments to our country,” she stated. “We will manage this fund jointly with the United States. Neither party will have a majority vote, reflecting an equal partnership between Ukraine and the United States.”
The fund will draw its resources exclusively from new licensing revenues “for projects in the field of critical materials and oil and gas,” with profits split evenly between the two nations, Svyrydenko explained. The United States will also contribute to the fund, potentially through “NEW assistance — for example, air defense systems for Ukraine.”
To amplify the fund’s impact, the US will leverage its influence to draw cutting-edge technology and additional capital. The US International Finance Corporation, or “DFC,” will play a pivotal role in this effort. “DFC will help us attract investments and technologies from funds and companies in both the US and the EU and other countries that support our fight against the Russian enemy,” Svyrydenko noted.
The fund’s investments will focus on mineral extraction, oil and gas projects, and related infrastructure or processing facilities. Both nations will jointly decide on specific projects, ensuring alignment on priorities.
Svyrydenko highlighted a unique feature of the agreement: for the first decade, “the fund’s profits and revenues will not be distributed, but can only be invested in Ukraine.” She added that “these conditions will be discussed further” to refine the approach.
To maximize returns, the fund will operate tax-free, a move Svyrydenko said would ensure “investing yields the greatest possible results.” The US Treasury Department echoed this optimism, framing the agreement as a continuation of America’s steadfast support for Ukraine amid Russia’s 38-month invasion.
“In recognition of the significant financial and material support that the people of the United States have provided to the defense of Ukraine since Russia’s full-scale invasion, this economic partnership positions our two countries to work collaboratively and invest together to ensure that our mutual assets, talents, and capabilities can accelerate Ukraine’s economic recovery,” the department stated.
Crucially, Svyrydenko clarified that “the agreement does not mention any debt obligations of Ukraine to the US,” addressing a major concern for Kyiv. This provision points to the spirit of equality driving the partnership.
“The implementation of the agreement will allow both countries to increase their economic potential through equal cooperation and investment,” she said.
The road to this agreement was not without challenges. A draft framework had been in discussion for two months, with hopes of finalization on February 28.
However, that day saw tensions flare when Ukrainian President Volodymyr Zelensky engaged in a heated Oval Office exchange with President Trump and Vice President JD Vance, leaving the deal unsigned. Despite this setback, perseverance on both sides brought the agreement to fruition.
Svyrydenko expressed hope that the fund would serve as a beacon for global investors, demonstrating that “it is reliable to cooperate with Ukraine in the long term — for decades.”
She tied the agreement to deeper geopolitical significance, noting that it reflects America’s commitment to “achieving long-term peace in Ukraine” and acknowledges Ukraine’s historic sacrifice in relinquishing its nuclear arsenal under the 1994 Budapest Memorandum, which Russia violated with its invasion.
“Thank you to everyone who worked for the agreement, making it more meaningful,” Svyrydenko stated. “Now the document is one that can ensure success for both our countries – Ukraine and the United States.”
This partnership marks a pivotal moment, not only for rebuilding Ukraine but also for forging a resilient economic alliance with the United States.
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