WASHINGTON, D.C. – After months of intense negotiations, the United States and Ukraine have formalized an agreement focused on the joint exploitation of Ukraine’s vast energy and mineral resources.
The deal, which was finalized in Washington on Wednesday, includes the creation of the US-Ukraine Reconstruction Investment Fund, designed to fuel Ukraine’s economic recovery from its ongoing war with Russia.
US Treasury Secretary Scott Bessent hailed the agreement as a demonstration of both nations’ commitment to ensuring long-term peace and prosperity in Ukraine.
The fund, which recognizes the significant financial and material support provided by the US since Russia’s invasion in February 2022, aims to unlock Ukraine’s untapped potential—particularly its rich deposits of critical minerals such as lithium, titanium, and graphite.
These minerals are crucial to various industries, including renewable energy, military technology, and infrastructure.
The timing of the agreement is significant, as it comes amidst the United States’ ongoing trade war with China, which currently controls around 90% of the world’s rare-earth minerals.
Ukraine’s resources, seen as a vital alternative to China’s dominance, are poised to play a central role in the global supply chain.
In her statement after the signing, Ukraine’s Deputy Prime Minister Yulia Svyrydenko emphasized that the deal would “attract global investment” to Ukraine, particularly in sectors like minerals, oil, and gas.
While these resources will remain under Ukrainian ownership, the partnership is structured on a 50:50 basis, offering both countries an equal stake.
However, the deal still requires approval from Ukraine’s lawmakers.
In exchange for this access to Ukraine’s natural resources, the United States will provide additional security assistance, including air defense systems.
This reciprocal arrangement marks a significant shift from the Trump administration’s earlier stance, which had demanded repayment for all US military aid extended to Ukraine since the start of the war.
The final agreement, though, is believed to be a compromise, with Ukrainian President Volodymyr Zelensky successfully securing some key concessions from Washington.
The long-anticipated deal was initially set to be signed earlier this year but faced delays due to disagreements over final terms.
A US official familiar with the negotiations criticized Ukraine for attempting to alter already finalized provisions, particularly concerning the governance and transparency of the new investment fund.
Despite these hurdles, the deal’s eventual signing comes on the heels of a pivotal meeting between President Donald Trump and President Zelensky in Vatican City, where Trump urged Zelensky to finalize the terms.
During a phone interview with NewsNation, Trump stressed the importance of securing access to Ukraine’s rare-earth resources, describing them as “a big asset” with significant global potential.
The deal is also seen as crucial to Ukraine’s broader efforts to bolster its defense capabilities against Russia, with Trump indicating that it would help offset the multi-billion-dollar US aid provided to Ukraine since the war’s outbreak.
Kremlin has yet to respond to the agreement, but the geopolitical ramifications of the deal could be far-reaching, especially as both Washington and Kyiv look to fortify their economic and military positions in the face of Russia’s continued aggression.
