Economy

Subsoil deal: the US says it has sent a signal to Russia

U.S. Treasury Secretary Scott Bessent called the agreement signed with Ukraine on the creation of a joint Investment Fund for Reconstruction a “historic agreement on economic partnership” between the countries. This was reported by "Komersant Ukrainian" with reference to the US Treasury Department.

In his statement, the U.S. minister announced that “on April 30, the United States and Ukraine signed an agreement to establish the U.S.-Ukraine Reconstruction Investment Fund.” This is the so-called “subsoil agreement”.

“In recognition of the significant financial and material support that the people of the United States have provided to Ukraine’s defense in the wake of Russia’s full-scale invasion, this economic partnership allows our two countries to work together and invest together so that our combined assets, talents, and capabilities can accelerate Ukraine’s economic recovery,” Bessent said.

According to him, under the leadership of U.S. President Donald Trump, the U.S. Treasury Department and the U.S. International Development Finance Corporation (DFC) “will work together with the government of Ukraine to complete program management and advance this important partnership.”

“Thanks to President Trump’s tireless efforts to secure a lasting peace, I am pleased to announce the signing of today’s historic economic partnership agreement between the United States and Ukraine, which establishes the U.S.-Ukraine Recovery Investment Fund,” Bessent said.

The agreement between Ukraine and the United States is a signal to Russia

He recalled Trump’s words about the United States’ commitment to helping end “this cruel and senseless war.”

“This agreement sends a clear message to Russia that the Trump administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine in the long term. President Trump envisioned this partnership between the American and Ukrainian people to demonstrate both sides’ commitment to lasting peace and prosperity in Ukraine,” the U.S. Secretary said in a statement.

Bessent also added, “for clarity,” that neither the state nor the individual who “financed or supplied the Russian war machine will be allowed to benefit from Ukraine’s reconstruction.”

“Both the United States and the government of Ukraine look forward to the swift implementation of this historic economic partnership for both the Ukrainian and American people,” the US Treasury Secretary concluded.

Thanks to @POTUS @realDonaldTrump‘s tireless efforts to secure a lasting peace, I am pleased to announce the signing of today’s historic economic partnership agreement between the United States and Ukraine establishing the United States-Ukraine Reconstruction Investment Fund to help… pic.twitter.com/N1jPa35DYh

– Treasury Secretary Scott Bessent (@SecScottBessent) April 30, 2025

Updated provisions of the signed agreement:

• Full ownership and control remain with Ukraine.

All resources on our territory and in our territorial waters belong to Ukraine. It is the Ukrainian state that determines where and what to extract. Subsoil remains in Ukrainian ownership – this is enshrined in the agreement.

• Equal partnership.

The Fund is being created on a 50/50 basis. We will manage this Fund jointly with the United States. Neither party will have a majority vote, and this will reflect the equal partnership between Ukraine and the United States.

• National property is protected.

The agreement does not change the privatization process or the management of state-owned companies – they will continue to belong to Ukraine. Companies such as Ukrnafta or Energoatom remain in state ownership.

• No debts.

The agreement does not mention any debt obligations of Ukraine to the United States. Implementation of the agreement will allow both countries to increase their economic potential through equal cooperation and investment.

The agreement is in line with the Constitution and does not change Ukraine’s European integration course.

The document is consistent with national legislation and does not contradict any of Ukraine’s international obligations. It is important that the agreement will signal to other global players that it is reliable to cooperate with Ukraine in the long term – for decades.

• The Fund will be filled with revenues exclusively from NEW licenses.

We are talking about 50% of the funds from new licenses for projects in the field of critical materials and oil and gas that will go to the budget after the Fund is created. Revenues from projects already launched or budgeted revenues are not included in the Fund. The agreement refers to further strategic cooperation.

• Legislative changes are only point changes.

Only amendments to the Budget Code are envisaged for the Fund to function. The Agreement itself must be ratified by the Verkhovna Rada.

• The US will help attract additional investments and technologies

The Fund is supported by the U.S. government through the DFC agency, which will help us attract investment and technology from funds and companies in the U.S., the EU and other countries that support our fight against the Russian enemy. Technology transfer and development is an important component of the Agreement, as we need not only investment but also innovation.

• The Agreement provides tax guarantees

The Fund’s income and contributions are not taxed in the United States or Ukraine, so that investments can yield the greatest possible results.

How will the Fund work?

The United States makes a contribution to the Fund. In addition to direct funds, they can also contribute NEW assistance, such as air defense systems for Ukraine.

Ukraine contributes 50% of the state budget revenues from NEW royalties on NEW licenses for NEW fields. Ukraine can also make additional contributions beyond this basic one, if it deems it necessary. We are talking about cooperation for decades to come.

The Fund then invests in mining and oil and gas projects, as well as related infrastructure or processing. Ukraine and the United States will jointly determine the specific investment projects to which the funds will be allocated. Importantly, the Fund can invest exclusively in Ukraine.