Representatives from the United States and Ukraine say they signed a long-awaited deal that will create a joint fund to assist in Ukraine’s reconstruction and reportedly allow the U.S. some access to Ukraine’s minerals, after months of negotiations.
Earth and minerals are loaded onto trucks at an open-pit mine near the frontline, despite the threat ... More
The agreement creates the United States–Ukraine Reconstruction Investment Fund, which will be jointly managed with “50% of the revenues from new licenses in the field of critical materials, oil, and gas” in Ukraine being put into it, according to Yulia Svyrydenko, Ukraine’s economy minister.
A draft of the agreement seen by Reuters detailed the U.S. getting “preferential access to new Ukrainian natural resources deals,” the outlet reported Wednesday.
The U.S. will also contribute to the fund through “direct financial contributions” and through military assistance to Ukraine, Svyrydenko said in a post announcing the deal had been signed.
The Treasury Department said in a statement the fund is in “recognition of the significant financial and material support that the people of the United States have provided to the defense of Ukraine since Russia’s full-scale invasion” and will help “accelerate Ukraine’s economic recovery.”
The agreement appears to be similar to the original deal that was set to be signed in February and indicated Ukraine would put 50% of the proceeds from its state-owned mineral resources into a fund that would be jointly owned with the U.S., and there were not security guarantees outlined for Ukraine, the BBC reported.
The deal originated after President Donald Trump indicated Ukraine could give the U.S. access to its minerals in return for U.S. support of Ukraine in its ongoing war with Russia and described the potential agreement as a reimbursement for the U.S.’ aid, the Associated Press reported.
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“This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term,” Treasury Secretary Scott Bessent said in a video announcing the agreement.
Ukraine President Volodymyr Zelenskyy traveled to the U.S. in February to reportedly sign the deal, but he left the White House without signing it after an Oval Office meeting between him and Trump ended in a shouting match. Zelenskyy put out a statement days after the visit saying he wanted to end the war with Russia and that Ukraine was ready to sign the minerals deal and saw it as “a step toward greater security and solid security guarantees.”
It’s not clear. Back in February, experts expressed concerns to Forbes about the cost and production times associated with mining raw materials, and some said the mining might not result in a huge payoff. Benchmark Minerals Intelligence rare earths pricing analyst George Ingall told Forbes the minerals the U.S. desired at the time “won’t be used to make a profit in the next 10 or 15 years.” Ingall also said it takes up to $2 billion to get a rare earth mineral mine operational. Even though a minerals deal may take time to financially benefit the U.S., obtaining the natural resources from Ukraine could help reduce the U.S.’ reliance on China and Russia to import the materials, The Guardian reported.
Ukraine’s Ministry of Environmental Protection and Natural Resources said it has the number-one graphite and lithium reserves in Europe, with its graphite reserve making up 6% of the world’s total. Ukraine has also said it has the largest titanium and uranium reserves in Europe, and alleged its beryllium reserves are “capable of satisfying 40 years of the world's production.”
Ukraine has been at war with Russia since Russia invaded in February 2022, and the U.S. has given an estimated $66.5 billion in military assistance as of March. Trump has been critical of the aid former President Joe Biden gave to Ukraine and insisted the war never would have begun were he president at the time. Trump has also faced criticism for seeming to side with Russia and President Vladimir Putin, though he recently has been more critical of Putin, suggesting on social media Saturday Putin “doesn’t want to stop the war, he’s just tapping me along, and has to be dealt with differently.” During his campaign, Trump said he could end the war on his first day in office—though in a recent interview ahead of his 100th day in office, Trump said he made the comment “figuratively, and I said that as an exaggeration.” Trump and Zelenskyy had not publicly met since their blow up in February until this most recent weekend, when the pair sat down to talk at the funeral of Pope Francis. Trump said on social media he had “a good day in talks and meetings with Russia and Ukraine,” and added: “They are very close to a deal.” Zelenskyy also said on X the two had a “good meeting,” thanked Trump for talking and said they “discussed a lot.”
Ukraine Reportedly Agrees To Mineral Deal With U.S.—As Trump Pushes For Russia-Ukraine Ceasefire (Forbes)
Trump’s ‘Big Deal’ For Ukraine Minerals? It Might Not Pay Off Soon—If Ever—Experts Say (Forbes)