Ukraine, US launch fund for critical minerals projects with $150 million investment

By Yuliia Dysa

KYIV (Reuters) - Ukraine and the U.S. International Development Finance Corporation will each commit $75 million to a joint investment fund that is part of Kyiv's minerals deal with Washington first signed in April, officials said on Wednesday.

"The U.S. Development Finance Corporation (DFC) has made a pilot commitment of $75 million, which Ukraine will match," Prime Minister Yulia Svyrydenko said in a statement.

DFC said the investment would support Ukraine’s reconstruction and economic recovery and strengthen U.S. natural resource supply chains.

Svyrydenko said the initial focus would be on projects in energy, infrastructure, and critical minerals.

Ukraine and the U.S. signed the deal, which had been promoted by President Donald Trump, in April, giving the United States preferential access to new Ukrainian minerals projects in exchange for investment.

The U.S. has been Ukraine's key military donor since Russia's invasion in February 2022. But after Trump's return to the White House this year, he has argued that the U.S. should get something back for its aid to Kyiv.

Half of the revenue Ukraine earns from new mineral extraction under the deal would go to the fund, with profits split between Kyiv and Washington.

The government plans to implement three large-scale projects through the end of 2026.

"American partners are paying particular attention to gas projects," said Economy Minister Oleksiy Sobolev, adding that such projects could be implemented quicker compared with minerals exploration.

DFC's team was in Ukraine this month, scouting for projects. The delegation was in the central Kirovohrad region, visiting sites with deposits of titanium and zirconium ore, Sobolev said.

Ukraine has deposits of 22 of the 34 minerals considered critical by the EU for industries such as defence, high-tech appliances and green energy. It also possesses ferro alloys needed by the steel industry, non-ferrous metals used in construction, and some rare earth elements.

(Reporting by Yuliia Dysa, writing by Olena Harmash; Editing by Bernadette Baum)