Ukraine, US hold first meeting of joint investment fund board, PM says

By Olena Harmash and Yuliia Dysa

KYIV (Reuters) -Ukraine and the U.S. on Wednesday held the first board meeting of a joint investment fund, set up as part of a minerals deal with Washington, Prime Minister Yulia Svyrydenko said.

The deal with the United States, which gives Washington preferential access to Ukrainian minerals in exchange for investment, is seen as a way to help a Ukrainian economy shattered by Russia's invasion, as well as Kyiv's defence efforts.

Svyrydenko said Ukrainian and U.S. officials have approved several key steps to advance the fund's operations, including setting up committees and choosing an administrator and an investment adviser.

"We continue close cooperation with the American colleagues at all levels," Svyrydenko said, posting several pictures from the meeting, including one of U.S. Treasury Secretary Scott Bessent, who participated online.

"U.S. investments can be a guarantee of security both for Ukraine and for American businesses in Ukraine," she said on the Telegram app.

As the war with Russia heated up in recent months despite increased international efforts to push for a diplomatic solution, Kyiv is keen to maintain a positive relationship with the United States, an important military ally.

Kyiv and Washington agreed on the minerals deal after it was heavily promoted by U.S. President Donald Trump in April. It envisages that half the revenue the Ukrainian government earns from mineral extraction would go to the joint investment fund.

Svyrydenko said the next step would be to identify projects for the first pilot investments, adding that the issue would be discussed later this month during a visit of a delegation from U.S. development institution DFC.

To showcase that Kyiv is advancing its work on the minerals deal, the government has ordered a sweeping review of all mining licences in Ukraine and also launched a tender for the right to mine a lithium deposit site in its central Kirovohrad region.

Ukraine has deposits of 22 of 34 minerals considered critical by the European Union for industries such as defence, high-tech appliances and green energy, as well as ferro alloy, precious and non-ferrous metals used in construction, and some rare earth elements.

(Reporting by Yuliia Dysa, Olena Harmash; Editing by Ros Russell and Bill Berkrot)