Ukraine and the United States have finalized negotiations on rare earth metals: Media published the full text of the agreement

On February 26, 2025, the media published the final text of the Ukraine-US agreement on minerals. The document is likely to be signed this week, by March 2.

The head of the Ukrainian government, Denys Shmyhal, announced the conclusion of the negotiations during a telethon on February 26. At the same time, the media published a possible text of the future agreement. The following is the text of the document:

BILATERAL AGREEMENT ON THE ESTABLISHMENT OF THE RULES AND CONDITIONS OF THE INVESTMENT FUND FOR RECONSTRUCTION

WHEREAS, the United States of America has provided significant financial and material support to Ukraine since Russia's full-scale invasion of Ukraine in February 2022;

WHEREAS, the American people want to invest with Ukraine in a free, sovereign and secure Ukraine;

WHEREAS, the United States of America and Ukraine seek a lasting peace in Ukraine and a lasting partnership between their two peoples and governments;

WHEREAS, the United States and Ukraine recognize the contribution that Ukraine has made to international peace and security by voluntarily giving up the world's third largest nuclear weapons arsenal;

WHEREAS, the United States of America and Ukraine wish to ensure that those states and others who acted hostilely against Ukraine in the conflict do not benefit from Ukraine's reconstruction after a lasting peace;

NOW, THEREFORE, the Government of the United States of America and the Government of Ukraine (each, a "Participant") enter into this Bilateral Agreement Establishing the Terms and Conditions of the Reconstruction Investment Fund to deepen the partnership between the United States of America and Ukraine as set forth herein.

1. The Governments of Ukraine and the United States of America, in order to achieve lasting peace in Ukraine, intend to establish a Reconstruction Investment Fund (the Fund) by creating a partnership in the Fund through joint ownership, to be further defined in the Fund Agreement. The joint ownership will take into account the actual contributions of the Participants as defined in Sections 3 and 4. The Fund will be managed jointly by representatives of the Government of Ukraine and the Government of the United States of America. More detailed terms regarding the management and operation of the Fund will be set forth in a subsequent agreement (the Fund Agreement) to be negotiated immediately following the conclusion of this Bilateral Agreement. The maximum percentage of ownership of the equity and financial interests of the Fund to be held by the United States Government, as well as the decision-making powers of the representatives of the United States Government, will be within the limits permitted by applicable United States law.

No Participant will sell, transfer or otherwise dispose of any part of its interest in the Fund, directly or indirectly, without the prior written consent of the other Participant.

2. The Fund will collect and reinvest the income contributed to the Fund, less expenses incurred by the Fund, and earn income from the future monetization of all relevant natural resource assets owned by the State of Ukraine (whether directly or indirectly owned by the State of Ukraine), as defined in Section 3.

3. The Government of Ukraine will contribute to the Fund 50% of all revenues received from the future monetization of all relevant natural resource assets owned by the State of Ukraine (whether directly or indirectly owned by the State of Ukraine), defined as mineral deposits, hydrocarbons, oil, natural gas and other extractive materials and other infrastructure relevant to natural resource assets (such as liquefied natural gas terminals and port infrastructure) as agreed by both Participants, as may be further described in the Fund Agreement. For the avoidance of doubt, such future sources of revenue do not include current sources of revenue that are already part of the general revenues of the Ukrainian budget. The timing, amount and stability of the contributions will be further defined in the Fund Agreement.

At its sole discretion, the Fund may credit or refund to the Government of Ukraine the actual costs incurred under newly established projects from which the Fund receives revenues.

Contributions made to the Fund will be reinvested at least once a year in Ukraine to promote the security, defense and prosperity of Ukraine, as further defined in the Fund Agreement. The Fund Agreement will also have provisions for future dividends.

4. In accordance with applicable United States law, the United States Government will maintain a long-term financial commitment to the development of a stable and economically prosperous Ukraine. Further contributions may consist of cash, financial instruments, and other tangible and intangible assets critical to the reconstruction of Ukraine.

5. The Fund's investment process will be designed to invest in projects in Ukraine and to attract investments to increase the development, processing, and monetization of all public and private assets, including, but not limited to, the following: mineral deposits, hydrocarbons, oil, natural gas, and other extractive materials, infrastructure, ports, and state-owned enterprises, as may be further described in the Fund Agreement. It is the intention of the United States Government and the Government of Ukraine that the investment process should lead to opportunities for additional allocation and greater reinvestment to ensure that sufficient capital is available for the reconstruction of Ukraine, as defined in the Fund Agreement.

Participants reserve the right to take the necessary actions to protect and maximize the value of their economic interests in the Fund.

6. The Fund Agreement will include appropriate representations and warranties, including those necessary to ensure that any obligations that the Government of Ukraine may have to third parties or that it may incur in the future will not result in the sale, transfer, assignment, pledge or other encumbrance of the contributions of the Government of Ukraine to the Fund or the assets from which such contributions are derived, or in the disposition of funds by the Fund.

In drafting the Fund Agreement, the Participants shall seek to avoid conflicts with Ukraine's obligations under its accession to the European Union or its obligations under arrangements with international financial institutions and other official creditors.

7. The Fund Agreement will provide, inter alia, for the recognition that both the Fund Agreement and the activities provided for therein are of a commercial nature.

The Fund Agreement will be subject to ratification by the Parliament of Ukraine in accordance with the Law of Ukraine "On International Treaties of Ukraine".

8. The Fund Agreement will pay special attention to control mechanisms that will make it impossible to weaken, violate or circumvent sanctions and other restrictive measures.

9. The text of the Fund Agreement will be promptly developed by working groups chaired by authorized representatives of the Government of Ukraine and the Government of the United States of America. The contact persons responsible for the preparation of the Fund Agreement on the basis of this Bilateral Agreement are: from the Government of the United States of America: Department of the Treasury; from the Government of Ukraine: Ministry of Finance and Ministry of Economy.

10. This Bilateral Agreement and the Fund Agreement will constitute integral elements of the architecture of bilateral and multilateral agreements, as well as concrete steps to establish lasting peace, strengthen economic and security resilience, and reflect the goals set forth in the preamble to this Bilateral Agreement.

The United States Government supports Ukraine's efforts to obtain the security assurances necessary to establish a lasting peace. The participants will seek to identify any necessary steps to protect mutual investments as defined in the Fund Agreement.

11. This Bilateral Agreement is binding and will be implemented by each Participant in accordance with their internal procedures. The Government of the United States of America and the Government of Ukraine undertake to proceed promptly with the negotiation of the Fund Agreement.

From the Government of the United States of America:

Scott C. G. Bessent

Secretary of the Treasury

On behalf of the Government of Ukraine:

Yulia Svyrydenko

First Vice Prime Minister of Ukraine - Minister of Economy of Ukraine