Economy

Agreement between Ukraine and the United States: what it provides for and why it does not apply to subsoil

Recently, public attention has been focused on the negotiations between Ukraine and the United States on signing a framework agreement on cooperation in the field of subsoil, including rare earth minerals. This document, which has already been approved by the Cabinet of Ministers of Ukraine, has caused a lot of debate: is Ukraine not giving up its sovereignty by giving away its subsoil rights? In an interview with Yurydychna Praktyka, Olha Stefanishyna, Vice Prime Minister for European and Euro-Atlantic Integration , explained the essence of the agreement, emphasizing that it does not provide for the transfer of subsoil use rights or any property rights.

Framework agreement: a political basis for future cooperation

According to Olga Stefanishyna, the framework agreement between Ukraine and the United States is not an international treaty in the classical sense, but rather a political agreement that defines the parties’ intentions to create a joint Investment Recovery Fund. This document is ready for signing, and the responsibility for this process lies with the First Vice Prime Minister and Minister of Economy Yulia Svyrydenko.

“It is important to note that the text of the agreement has already been drafted and approved by the government, and the First Vice Prime Minister of Ukraine, Minister of Economy of Ukraine Yulia Svyrydenko is authorized to sign it. In other words, the Ukrainian side has actually completed negotiations on the text of the agreement as it was approved, and it is now being prepared for signing,” Stefanishyna said.

She emphasized that this is the result of joint work of the Ministry of Economy, the Ministry of Justice and the Presidential Office, in particular the head of the Presidential Administration Andriy Yermak, who coordinated the negotiations with the US side.

Subsoil remains the property of Ukraine

One of the main concerns of Ukrainians is whether Ukraine will give away its subsoil as part of this agreement Olga Stefanishyna categorically denied such assumptions, explaining that the agreement does not concern the transfer of subsoil use rights or property.

“The agreement does not provide for the transfer of subsoil use rights or any property rights. It is about the distribution of revenues to the state budget, part of which is generated by the Fund. After signing this agreement, there are no legal consequences. That is, Ukraine does not receive any obligations to actually transfer funds or transfer them,” the Vice Prime Minister emphasized.

She added that the Constitution of Ukraine clearly states that subsoil belongs to the people, and any actions that could change this status would require not only parliamentary ratification but also a referendum. However, the framework agreement does not address these aspects, but only outlines the intention to reinvest subsoil revenues into the Ukrainian economy.

The purpose of the agreement: creation of the Fund and reinvestment

The main idea of the agreement is to create a joint Investment Recovery Fund, which will be replenished with revenues from the use of Ukrainian subsoil. These funds will be used to develop Ukraine’s economy and will be jointly owned by both countries.

“The same agreement establishes a political agreement between the governments of Ukraine and the United States of America on the intention to create the Fund. It provides for the main elements to be enshrined in the next agreement, which will be subject to ratification by the Parliament and will be an international treaty. As for the Fund, it will be replenished with funds generated from the rights to use Ukrainian subsoil. These funds will be transferred to the Fund and reinvested in Ukraine. It is expected that the Fund will be jointly owned by Ukraine and the United States,” explained Stefanishyna.

She also noted that the agreement contains important political messages, including US support for providing security guarantees for Ukraine and continuing long-term financial cooperation.

Interestingly, the US side agreed to Ukraine’s proposal to protect the facilities that will generate revenue for the Fund.

“The agreement provides for the continuation and support of long-term financial cooperation between Ukraine and the United States. And a very important element proposed by the Ukrainian side and agreed to by the US side is that the US government reserves the right to ensure the protection of the facilities that generate revenues for the Fund. If we look from a broader geopolitical perspective, we will understand what this means,” the Vice Prime Minister added.

Why doesn’t the agreement with the US on fossil fuels require a referendum?

Since the agreement does not change the legal status of subsoil and does not transfer it to another state, it does not require approval in a national referendum. Stefanishyna explained that the framework document does not generate immediate legal obligations, such as the transfer of funds or their transfer.

“This agreement is not an international treaty. That is, it is not subject to the law on international treaties, and the procedures provided for the negotiation and approval of international treaties do not apply to it. The international treaty will be a subsequent agreement that will establish the Investment Recovery Fund itself. The same agreement sets forth the political agreement between the governments of Ukraine and the United States of America regarding the intention to establish the Fund. It provides for the main elements to be enshrined in the next agreement, which will be subject to ratification by the parliament and will be an international treaty,” she said.

The future agreement on the Fund, which will have international status, will be subject to ratification by the Verkhovna Rada of Ukraine.

Geopolitical context and prospects

The Framework Agreement between Ukraine and the United States could become a model for US cooperation with other countries. According to Stefanishyna, U.S. President Donald Trump has already announced his intention to conclude similar agreements with countries in Africa and the Arab world. At the same time, the agreement with Ukraine has a unique context related to support in the face of Russian aggression and economic recovery after the war.

“The format of the agreement reached by Ukraine and the United States can definitely become a model for all other partners. I think the American side may also think so. But the context in which the agreement with Ukraine is signed is certainly unique. Because the preamble to the agreement recognizes the obligations of the United States as a country that was the guarantor of security in connection with Ukraine’s renunciation of nuclear weapons. It also recognizes the context of Russian aggression against Ukraine,” the Vice Prime Minister said.

She also emphasized that the need to restore and invest in the Ukrainian economy after the war is also recognized.

“The U.S. President also emphasized that this agreement is the beginning of a long-term financial cooperation between Ukraine and the EU. Therefore, there is hardly a more important context for anyone in the world than Ukraine to sign such an agreement. But, of course, we are also watching the negotiations with other partners,” Stefanishyna summarized.

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Draft agreement between Ukraine and the United States: what is known

In February 2025, the United States and Ukraine reached a preliminary agreement aimed at jointly developing and managing Ukraine’s mineral resources. The agreement, known as the Bilateral Agreement Establishing Conditions for the Reconstruction Investment Fund, provides for the establishment of a joint investment fund to rebuild Ukraine’s war-ravaged economy. The main objective of the fund is to attract and reinvest revenues from Ukraine’s substantial mineral wealth to contribute to its recovery and long-term stability.

Key provisions of the draft agreement

Establishment of the Reconstruction Investment Fund. According to the text of the draft agreement published by The Kyiv Independent, the fund will be jointly owned and managed by the governments of the United States and Ukraine. The ownership and financial interests of each party will be defined in a subsequent agreement on the fund. The fund will be managed by representatives of both governments, and more detailed terms will be set out in a subsequent agreement.

Ukraine’s contribution. Ukraine commits to allocate 50% of its future revenues from the monetization of its natural resources, including minerals, hydrocarbons, oil, natural gas and other extractive infrastructure, to the Reconstruction Investment Fund. These contributions will continue until the amount reaches USD 500 billion. It is important to note that current sources of revenue that are already included in the general budget of Ukraine are not covered by this agreement.

The role of the United States. The U.S. government is committed to maintaining a long-term financial commitment aimed at developing a stable and economically prosperous Ukraine. This includes investments, financial instruments, and other tangible and intangible assets critical to Ukraine’s recovery. However, the agreement does not include specific security guarantees or continued arms sales to Ukraine; these issues will be negotiated separately.