Ukraine and the US have signed a historic critic minerals deal.

Here are the key provisions of the subsoil agreement:

Full ownership and control remain with Ukraine. All resources within the country’s territory and territorial waters belong to Ukraine. It is up to the Ukrainian state to determine where and what to extract.

Equal partnership. The fund is created 50/50. Ukraine will manage this fund jointly with the United States. Neither party will have a majority vote.

National property is protected. The agreement does not allow for changes in the privatization processes or management of state-owned companies – they will continue to belong to Ukraine.

No debt. The agreement does not mention Ukraine’s debt obligations to the United States. Implementing the agreement will enable both countries to enhance their economic potential through equal cooperation and investment.

The agreement complies with Ukraine’s Constitution and does not alter the European integration trajectory. It should also serve as a signal to other global players that Ukraine will cooperate reliably over the long term – for decades to come.

The fund will be financed exclusively by revenue from new licenses. This includes 50% of the funds from new licenses for projects in critical materials and oil and gas, which will be allocated to Ukraine’s budget after the fund is established. Revenue from projects that have launched or those that have been accounted for in the budget are not included in the fund.

Legislative changes. For the fund to operate, only amendments to the budget code are required. The agreement itself must be ratified by the Verkhovna Rada. This could happen as soon as May 13-15. Following this, it will take effect and remain in force until the parties agree to terminate it.

The US will assist in attracting additional investment and technologies. The fund has the backing of the US government through the DFC agency, which will help Ukraine secure investment and technologies from funds and companies in the US, the EU, and other nations.

The agreement offers tax guarantees. The fund’s income and contributions are exempt from taxes in both the US and Ukraine.

Ukraine and the US have decided to break the agreement into several components. The agreement, signed on April 30, outlines the political parameters for cooperation between the two governments. Two additional steps are planned: finalizing an agreement between the US DFC and the Ukrainian agency, as well as developing a technical framework that will specify the fund’s operations and resource distribution.