Ukraine-US Minerals Pact: Long-Term Strategy Over Immediate Gains

In a recent discussion at the GLOBSEC Forum 2025 in Czechia, former US Special Envoy for Ukraine Kurt Volker addressed the implications of a newly established cooperation agreement between Ukraine and the United States focusing on minerals and natural resources. While the agreement carries significant political weight, he emphasized that it is unlikely to produce immediate financial benefits. The pact entails the formation of a Recovery Fund aimed at channeling revenues from future licenses related to natural resource extraction in Ukraine. However, Volker highlighted the delayed nature of this funding, stating, "the reality is: nothing will go into this fund... for years and years." According to Volker, the agreement is pivotal in reshaping the perception of Ukraine in the United States, transitioning from a narrative of dependence to one of potential repayment of aid in the future. He noted, "the Biden administration has been spending taxpayers’ money limitlessly and having no strategy." This new framework aims to establish a strategy where “a way Ukraine can pay them [the US – ed.] back,” is created. Volker stated that any financial returns from the deal are contingent upon the conclusion of the ongoing war and will require substantial investments in Ukraine's extraction sector over the following years. When discussing the investment climate in Ukraine, Volker pointed out that many regions are safe for business operations. He suggested that considerable barriers hindering investor confidence are not primarily related to the war but stem from Ukraine's overall business environment. He underscored the importance of identifying and addressing the factors impeding economic growth. Background Information: On May 8, the Ukrainian parliament ratified the minerals agreement with the US, which included the establishment of a joint reconstruction investment fund between Ukraine and the United States. President Volodymyr Zelenskyy subsequently signed the law on May 12. Following this, on May 13, Ukraine signed two commercial agreements with the US International Development Finance Corporation to further implement the ratified investment fund deal. On June 4, the Ukrainian parliament approved amendments to the Budget Code to facilitate the execution of the US-Ukraine mineral resources agreement. Support Ukrainska Pravda on Patreon!