Politics
US Ukraine Critical Minerals Deal: Strategic Agreement to Secure Key Resources
US Treasury Secretary Scott Bessent says accord is signal to Russia that US supports a ‘free, independent, and prosperous Ukraine’.
US Ukraine critical minerals deal
The United States and Ukraine have inked a deal to finance rehabilitation efforts in the war-torn nation and give Washington access to prized rare minerals.
After months of tense discussions, during which there was uncertainty until the very last minute due to rumors of last-minute changes to the agreement, the two nations signed the agreement in Washington, DC, on Wednesday.
After a spectacular blow-out between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy during their February White House meeting, relations between the two countries slumped until the agreement.
The establishment of the United States-Ukraine Reconstruction Investment Fund, according to US Treasury Secretary Scott Bessent, is a statement to Russia that the Trump administration is “committed to a peace process centred on a free, sovereign, and prosperous Ukraine over the long term.”
In a statement, Bessent stated that President Trump wanted this relationship between the American and Ukrainian people to demonstrate their shared commitment to enduring peace and prosperity in Ukraine.
“To be clear, the reconstruction of Ukraine will not benefit any state or individual that provided funding or supplies to the Russian war machine.”
The Trump administration did not elaborate on the agreement.
According to Ukraine’s Ministry of Economy, Kyiv would donate half of the money made from the exploitation of natural resources, while the US would either directly or through military aid contribute to the fund.
According to the government, for the first ten years, all of the fund’s assets would be invested solely in Ukraine; after that, “profits may be distributed between the partners.”
According to the ministry, the agreement would only cover future US military assistance—not previous aid—and the US and Ukraine would have equal decision-making authority over the fund.
In a statement, Ukrainian Minister of Economy Yulia Svyrydenko stated, “We are gaining not only investment but also a strategic partner committed to working with us to drive economic growth and innovation.”
“This agreement is the result of lengthy talks, and I appreciate the professionalism and commitment of both negotiating teams. We have collaborated to create a structure that benefits both parties. It also shows that the US values Ukraine’s contribution to international security and is committed to a long-term peace in that country.
Ukrainian Prime Minister Denys Shmyhal stated in a Telegram message just prior to the agreement’s signing that Kyiv would have “complete control over subsoil, infrastructure, and natural resources” and that the agreement would not impede its attempt to join the EU.
Ukraine and the US had planned to sign the agreement weeks ago, but a fiery clash between Trump and Zelenskyy in front of the world’s news media on February 28 temporarily derailed talks.
Former Ukrainian Economy Minister Tymofiy Mylovanov, who is the head of the Kyiv School of Economics, called the agreement a significant diplomatic and political victory for both nations.
According to Mylovanov on X, “it gives Trump a domestic political boost – and that translates, I expect, into a more positive attitude toward Ukraine.”
Ukraine managed to hold the line. All of the opposing side’s excessive demands were withdrawn in spite of tremendous pressure. The final agreement seemed reasonable.
Joint Fund
Any agreement to end Russia’s three-year incursion must include security assurances, according to Ukraine.
In the event of a truce, the Trump administration has maintained that advancing US corporate interests in Ukraine will aid in discouraging Russia from launching another attack.
It was unclear if Ukraine would get any security assurances as part of Wednesday’s agreement, which has to be approved by the Ukrainian parliament in order to go into force.
Ukraine is thought to possess around 5% of the world’s stocks of vital minerals, which are utilized in the production of electric cars, consumer electronics, and military gear.
The reserves of 22 of the 34 minerals that the EU has designated as critical are found in the nation’s deposits.