The United States and Ukraine have signed a minerals deal after a two-month delay, marking a new form of US commitment to Kyiv.
This agreement has sparked interest in the global community, with many wondering what this means for the future of Ukraine and its relations with the US.
Ukraine has secured key interests in the deal, including full sovereignty over its rare earths, which are vital for new technologies and largely untapped.
The US had initially demanded rights to Ukraine’s mineral wealth as compensation for US weapons sent under former president Joe Biden after Russia invaded just over three years ago. However, after protracted negotiations, Ukraine has accepted the minerals accord as a way to secure long-term investment by the United States.
Treasury Secretary Scott Bessent announced the deal in Washington, saying, “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.”
He added, “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.”
What the Deal Entails
The deal establishes a Reconstruction Investment Fund with equal voting rights for both countries. Ukraine will retain “full control over its subsoil, infrastructure and natural resources.”
The fund’s profits will be reinvested exclusively in Ukraine, financing mineral and oil and gas projects, as well as “related infrastructure or processing,” according to Ukrainian Economy Minister Yulia Svyrydenko.
In Kyiv, Prime Minister Denys Shmygal said the agreement was “good, equal and beneficial.” He said that Ukraine would not be asked to pay back any “debt” for billions of dollars in US support since Russia invaded in February 2022. Instead, the fund’s profits will be reinvested in Ukraine.
Reaction to the Deal
The deal has received mixed reactions, with some praising it as a step towards peace and others criticizing it as unfair. US Congressman Gregory Meeks called the deal “Trump’s extortion of Ukraine deal” and believes Trump should focus on pressuring Putin rather than fixating on Zelensky and Ukraine.
President Trump had originally sought $500 billion in mineral wealth, around four times what the United States has contributed to Ukraine since the war. However, the final deal seems to favor Ukraine, with the country retaining control over its natural resources.
Despite balking at offering security guarantees to Ukraine, Trump said a US presence on the ground would benefit Ukraine. “The American presence will, I think, keep a lot of bad actors out of the country or certainly out of the area where we’re doing the digging,” Trump said at a cabinet meeting.
The deal’s implications are far-reaching, with potential benefits for both the US and Ukraine.
Ukraine holds some 5% of the world’s mineral resources and rare earths, including around 20% of the world’s graphite, an essential material for electric batteries.
The country is also a major producer of manganese and titanium and says it possesses the largest lithium deposits in Europe.
However, much work remains to be done to tap these resources, and many sites are currently controlled by Russian forces. The deal may reopen the door to more US military aid to Ukraine, but its future is uncertain.
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