The United States and Ukraine have signed a contentious rare earth minerals deal.

The deal will allow the US to exploit Ukraine’s natural resources, including aluminium, graphite, oil and natural gas.

Scott Bessent, US treasury secretary, said the agreement recognises “the significant financial and material support that the people of the United States have provided to the defence of Ukraine since Russia’s full-scale invasion.”

He added: “Thanks to president Trump’s tireless efforts to secure a lasting peace, I am glad to announce the signing of today’s historic economic partnership agreement between the United States and Ukraine establishing the United States-Ukraine Reconstruction Investment Fund.

“As the president has said, the United States is committed to helping facilitate the end of this cruel and senseless war. 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.”

Mr Bessent continued: “President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides’ commitment to lasting peace and prosperity in Ukraine. And to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine.”

Yulia Svyrydenko, Ukraine’s first vice-prime minister, also confirmed a deal had been agreed, writing on X: “On behalf of the Government of Ukraine, I signed the Agreement on the Establishment of a United States–Ukraine Reconstruction Investment Fund.”

She added: “Together with the United States, we are creating the Fund that will attract global investment into our country.”

The deal comes after The Telegraph reported that Donald Trump had dropped his demand to force Volodymyr Zelensky to hold elections that could oust him as part of a peace deal.

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