The United States and Ukraine have signed a significant economic partnership agreement granting the U.S. access to Ukraine’s rare earth minerals in exchange for establishing a joint investment fund aimed at Ukraine’s recovery and development.
After weeks of challenging negotiations, the U.S. Treasury Department confirmed the agreement on Wednesday. Treasury Secretary Scott Bessent emphasized that the deal reinforces the United States’ commitment to ending the war in Ukraine and supporting its long-term prosperity.
“This agreement sends a clear message to Russia that the Trump administration is committed to a peace process built on the foundation of a free, sovereign, and prosperous Ukraine,” Bessent said. “No individual or state that financed or supplied Russia’s war effort will benefit from Ukraine’s reconstruction.”
Ukrainian Economy Minister Yulia Svyrydenko, who signed the agreement in Washington, clarified that all mineral resources remain under Ukrainian ownership and control. “All resources on our territory and in our territorial waters belong to Ukraine,” she said in a post on X (formerly Twitter). “It is Ukraine that determines what and where to extract.”
The deal nearly collapsed at the last moment due to a dispute over final documentation. It was initially expected to be signed during President Volodymyr Zelensky’s February visit to Washington, which was cut short following a contentious Oval Office meeting.
Past Tensions in Negotiations
One of the main points of contention during negotiations was whether the U.S. would provide security guarantees as part of the agreement. President Trump initially refused to offer such assurances before the deal was signed, prompting Zelensky to accuse the U.S. of pressuring Ukraine into compromising its sovereignty. Ukrainian officials have since suggested that American investment and corporate presence will inherently increase U.S. interest in Ukraine’s security.
Following Zelensky’s visit, Trump temporarily suspended U.S. aid to Ukraine. Although the aid was later restored, the incident alarmed European allies, prompting them to reaffirm their commitment to Ukraine’s defense and recovery.
Trump has characterized the deal as a form of repayment for the substantial aid the U.S. has provided Ukraine since Russia’s full-scale invasion began in February 2022. However, Ukrainian Prime Minister Denys Shmyhal confirmed that the agreement would not retroactively include previous assistance.
“This is a strategic agreement to establish an investment partnership fund,” Shmyhal said Wednesday. “It is a truly equal and mutually beneficial arrangement for joint investment in Ukraine’s development and recovery.”
According to Shmyhal, the U.S. and Ukraine will contribute equally to the investment fund and share management responsibilities. He also stated that any new military aid from the U.S. may count toward America’s contribution to the fund.
Ukraine’s Strategic Mineral Resources
Ukraine possesses deposits of 22 out of the 50 materials the U.S. Geological Survey classifies as critical, including rare earth elements essential for electronics, clean energy technologies, and advanced weapons systems.
With global supply chains heavily reliant on China for rare earth minerals, Western nations have been eager to diversify their sources — making Ukraine a strategic partner.
A memorandum of understanding drafted under the Biden administration previously outlined U.S. support for investment in Ukraine’s mining sector. That document encouraged Ukraine to create incentives and maintain strong environmental and business practices to attract American companies.
Ukraine already maintains a similar minerals agreement with the European Union, signed in 2021.
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