Ukraine, U.S. Finalize Minerals Deal without Tariffs or Debt Commitments

Ukraine and the United States on Wednesday signed a minerals exploration agreement that eliminates tariffs and debt commitments, after months of negotiation aimed at ensuring Ukraine’s sovereignty over its resources.

The deal, signed in Washington on April 30, establishes a framework for U.S. investment in Ukraine’s mining and natural resources sectors. According to Ukrainian Prime Minister Denys Shmyhal, the agreement guarantees Ukraine’s “full control over subsoil, infrastructure, and natural resources” and explicitly states there are no debt obligations linked to previous U.S. military aid.

“This agreement does not provide for any debt obligations,” Shmyhal emphasized, addressing earlier concerns that the deal could force Ukraine to repay military support in the form of resource concessions.

The pact forms part of a broader strategy to strengthen U.S.-Ukraine relations amid Russia’s ongoing war in Ukraine. It also reflects what U.S. officials described as a “long-term strategic alignment” between the two nations, although it includes no direct security guarantees. Instead, it pledges American backing for Ukraine’s “security, prosperity, reconstruction, and integration into global economic frameworks.”

The agreement replaces previous drafts that critics had labeled exploitative. Those earlier versions were said to risk giving foreign investors excessive leverage over Ukraine’s infrastructure and state institutions. The revised deal is designed to reassure domestic stakeholders and international observers that Ukraine’s sovereignty remains intact.

The agreement establishes the United States-Ukraine Reconstruction Investment Fund, managed jointly by Ukraine’s public-private partnership agency and the U.S. International Development Finance Corporation. Both parties committed to maintaining favorable conditions for investment while ensuring Ukraine’s legal and financial autonomy.

On the tax side, the agreement exempts all payments related to the partnership from Ukrainian taxes and confirms that Ukraine’s partner agency will not be subject to U.S. federal taxes, given that the investments occur entirely within Ukraine.

The deal also includes provisions to ensure that Ukraine’s currency, the hryvnia, can be freely converted into U.S. dollars for partnership purposes. However, it allows Ukraine to impose temporary restrictions in the event of severe economic instability, provided it consults with the U.S. Treasury.

Importantly, the agreement affirms Ukraine’s exclusive right to determine which areas and resources are open for prospecting and extraction. It also contains clauses requiring transparency and fair access for the U.S. side when Ukraine’s agencies issue new licenses for subsoil use or infrastructure projects.

Despite the positive tone surrounding the signing, analysts noted the absence of direct security commitments. The document focuses strictly on economic cooperation, leaving military assistance and defense guarantees to be handled through separate channels.

U.S. officials described the pact as part of a broader commitment to Ukraine’s long-term recovery and reconstruction. “We are reinforcing our commitment to Ukraine’s recovery strategy, ensuring that investment flows into critical sectors in a transparent and accountable way,” a U.S. State Department spokesperson said.

The full text of the agreement highlights mutual recognition of Ukraine’s sovereign rights over its natural resources and reaffirms both parties’ desire for a lasting peace. It also underscores their shared aim to prevent adversarial states from benefiting from Ukraine’s post-war reconstruction.