On April 30, under the leadership of President Donald J. Trump, the United States and Ukraine forged a groundbreaking agreement that marks the beginning of a first-of-its-kind partnership aimed at the reconstruction and long-term economic success of Ukraine. This unprecedented collaboration is designed to benefit both nations, illustrating a shared commitment to a free, peaceful, and sovereign future for Ukraine.
This historic partnership is not just a response to the devastation caused by Russia’s full-scale invasion; it represents a strategic alliance that will strengthen the ties between the United States and Ukraine. The Treasury Department and the U.S. International Development Finance Corporation (DFC) will work in tandem with the Government of Ukraine to finalize governance structures and advance this significant initiative. With the backing of the full faith and credit of both nations, the DFC will collaborate with Ukraine’s State Organization Agency on Support Public-Private Partnership, ensuring a robust framework for the partnership.
President Trump’s vision for this partnership emphasizes a mutual commitment to lasting peace and prosperity in Ukraine. A key component of this agreement is the establishment of a fund that will receive 50% of royalties, license fees, and other payments from natural resource projects in Ukraine. These funds will be reinvested into new projects within Ukraine, fostering long-term economic growth and generating returns for both the American and Ukrainian peoples.
As new projects emerge, resources from the fund can be swiftly allocated to essential developments, including job creation and other key priorities for Ukrainian growth. The partnership is expected to indirectly bolster the private sector and enhance the infrastructure of Ukraine, paving the way for long-lasting success.
The partnership will be governed by a company comprising an equal representation of three American and three Ukrainian board members. This collaborative governance structure aims to ensure transparent decision-making regarding fund resource allocation, investments, and distributions. The commitment to high levels of transparency and accountability will guarantee that both the people of Ukraine and the United States reap the benefits of Ukraine’s reconstruction.
Natural resource projects will encompass minerals, hydrocarbons, and related infrastructure development. In a strategic move to safeguard national interests, the United States will have the first option to acquire these resources or designate a preferred purchaser. This important measure ensures that critical resources do not fall into the wrong hands, reinforcing the idea that economic security is national security.
This partnership sends a clear and powerful message to Russia: the United States is deeply invested in Ukraine's long-term success. The agreement stipulates that no state, company, or individual that has financed or supported the Russian war machine will be allowed to benefit from Ukraine's reconstruction efforts or participate in projects funded by this initiative.
In summary, this historic partnership between the United States and Ukraine represents a significant step toward rebuilding Ukraine and fostering a prosperous future. By combining resources and expertise, both nations are committed to achieving sustainable economic growth and ensuring that the benefits of reconstruction are shared equitably.
