Washington, D.C. — The United States and Ukraine have formalized a significant economic partnership, granting the U.S. access to Ukraine’s rare earth minerals while establishing a joint investment fund. This agreement, following extensive negotiations, underscores the growing collaboration between the two nations amid ongoing geopolitical tensions.
Discussions around the deal have been in progress since January, coinciding with President Donald Trump’s return to office. The negotiations faced various hurdles, including disagreements that temporarily halted U.S. aid to Ukraine. Trump expressed optimism about the agreement during a recent conversation, highlighting its potential to bolster Ukraine against Russian aggression.
In a statement, the U.S. Treasury Department confirmed the signing, with Secretary Scott Bessent emphasizing America’s commitment to Ukraine’s sovereignty and long-term stability. The agreement aims to signal to Russia the U.S. administration’s dedication to a peaceful outcome for Ukraine. He also stated that any entities supporting the Russian military efforts would not benefit from the reconstruction of Ukraine.
Ukraine’s Economy Minister Yulia Svyrydenko, who was in the capital for the signing, asserted that the agreement guarantees full ownership of resources to Ukraine. She reiterated that all natural resources within the nation’s borders and territorial waters remain under Ukrainian control, highlighting the country’s sovereignty in determining resource extraction.
The timeline for finalizing the agreement was tumultuous, with a last-minute conflict regarding the documentation nearly derailing the negotiations. Ukrainian President Volodymyr Zelensky had previously intended to secure the deal during a visit to Washington in February, but complications during that trip left the agreement unsigned.
Key points of contention included the question of security guarantees from the U.S., which Trump initially preferred to address only after Ukraine committed to the partnership. This stance triggered concerns in Kyiv, with Zelensky previously expressing reservations about the terms, fearing they required Ukraine to compromise its national integrity. However, subsequent discussions have indicated a shift in Ukrainian officials’ attitudes, suggesting that American investment in the country will enhance its security posture.
Following the contentious meeting in February, Trump had briefly suspended aid to Ukraine, a decision that sparked alarm among Kyiv’s European allies and prompted them to enhance their support. The President has portrayed the agreement as a means for Ukraine to reciprocate for U.S. assistance since the onset of the conflict in February 2022, which has totaled around $123 billion.
Bessent described the deal as a pivotal opportunity for American involvement, enabling a chance for the U.S. to share in the financial and military benefits associated with Ukraine’s recovery and development. The details of the agreement remain largely undisclosed, although Ukrainian Prime Minister Denys Shmyhal indicated it would not retroactively cover assistance received prior to its signing.
Shmyhal characterized the partnership as a strategic endeavor focused on establishing an investment framework conducive to mutual growth. Under the terms of the deal, both nations will contribute equally to the investment fund, sharing management responsibilities.
Ukraine is rich in mineral resources, possessing deposits of 22 critical materials identified by U.S. Geological Survey, encompassing essential components for electronics and renewable energy technologies. Historically, global production of these minerals has been predominantly in the control of China, prompting Western nations to seek alternative sources.
Last year, a memorandum drafted during the Biden administration outlined the U.S. intent to stimulate investment in Ukraine’s mining sector, contingent upon Kyiv adopting favorable economic practices. This initiative parallels an existing agreement with the European Union, further solidifying Ukraine’s strategic partnerships.