KYIV, Ukraine (AP) — In a significant development following months of negotiations, the U.S. and Ukraine have signed a strategic agreement designed to enhance Washington’s access to Ukraine’s critical minerals and natural resources.
This is particularly timely for Ukraine, which hopes that the deal will help secure long-term military and economic support against Russian aggression.
Ukrainian officials have hailed this version of the agreement as vastly more favorable than earlier proposals, which they claim relegated Ukraine to a secondary role and granted the U.S. extensive rights to its resources.
The agreement, signed on Wednesday, will still require ratification by the Ukrainian parliament.
One of the key features of the deal is the establishment of a reconstruction fund intended to facilitate future U.S. military assistance to Ukraine as it continues its defense efforts.
The previous attempt to finalize an agreement was halted during a tense meeting involving then-President Donald Trump, U.S. Vice President JD Vance, and Ukrainian President Volodymyr Zelenskyy.
Ukrainian Economy Minister Yulia Svyrydenko, who put pen to paper on the deal, expressed optimism, stating on Facebook, “We have formed a version of the agreement that provides mutually beneficial conditions for both countries.
This is an agreement in which the United States notes its commitment to promoting long-term peace in Ukraine and recognizes the contribution that Ukraine has made to global security by giving up its nuclear arsenal.”
The timing of the signing coincides with what U.S. Secretary of State Marco Rubio described as a “very critical” week for U.S.-led diplomatic efforts aimed at addressing the stalled conflict in Ukraine.
For Ukraine, this agreement signals reassurance that its primary ally, the United States, remains engaged and committed to providing military support, which is vital in the ongoing war against Russia.
U.S. Treasury Secretary Scott Bessent, who signed for the U.S., emphasized that the deal signifies the Trump administration’s long-term dedication to a peaceful future for Ukraine, stating, “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.”
So, what exactly does this agreement entail?
The deal encompasses not only critical minerals such as rare earth elements but also vital resources including oil and natural gas.
Importantly, it excludes existing sources of revenue for Ukraine, meaning that any financial benefits under the deal are tied to new investments.
Ukrainian officials have also highlighted that the agreement does not impose any debt obligations on Kyiv, suggesting that revenues generated from the fund will not serve to repay the U.S. for previous support.
The agreement clearly stipulates that Ukraine will maintain full ownership of its resources and retain the authority to decide what and where can be extracted.
However, it notably does not provide explicit security guarantees that Ukraine has long sought to deter future Russian aggression.
The official text lists 55 minerals, with the possibility of adding more elements in future negotiations.
Amid emerging economic shifts, Trump has expressed ongoing interest in Ukraine’s valuable rare earth elements, some of which are included in the deal, alongside other essential materials such as titanium, lithium, and uranium.
Understanding what rare earth elements are is crucial—they are a collection of 17 elements fundamental to a range of consumer technologies, from cellphones and hard drives to electric and hybrid vehicles.
China currently dominates the global market for rare earth elements, prompting the U.S. and Europe to seek ways to lessen their reliance on Beijing, which is seen as a geopolitical adversary.
Notably, the deal lists elements like lanthanum, cerium, and scandium, which play a critical role in the technology sector.
As for how the newly established fund will operate, it will be governed collaboratively by the U.S. and Ukraine, with both parties having equal say in its management.
Supported by the U.S. government through the U.S. International Development Finance Corporation, Ukrainian officials hope the fund will attract investment and technological support from American and European partners.
Future profits derived from government-owned natural resources will funnel 50 percent back into the fund, while the U.S. will additionally contribute through direct funds and military equipment, including much-needed air defense systems.
For the first decade, no profits will be extracted from the fund, according to Svyrydenko.
Initially, Trump administration officials envisioned a far more lucrative arrangement, demanding $500 billion in profits from mined minerals as compensation for U.S. wartime support.
However, President Zelenskyy firmly rejected this proposal, stating, “I would not sign off on an agreement that will be paid off by 10 generations of Ukrainians.”
Currently, Ukraine’s mineral industry is underdeveloped, largely due to strict state regulations, inadequate geological data, and the ongoing war, which has rendered many regions inaccessible.
Nonetheless, the potential for Ukraine’s natural resources is significant. Estimates suggest that it harbors some of Europe’s largest reserves of titanium, critical for various industries including aerospace and automotive, as well as extensive lithium reserves essential for batteries and technology.
As of 2021, the mineral sector accounted for 6.1 percent of Ukraine’s gross domestic product and constituted 30 percent of its exports.
However, ongoing Russian occupation has hindered access to approximately 40 percent of Ukraine’s metallic mineral resources, as reported by the Kyiv-based think tank We Build Ukraine.
In light of these developments, Ukraine maintains that furthering the exploration and utilization of its mineral assets is vital before further territorial losses occur due to Russian advances.
image source from：https://www.pbs.org/newshour/politics/whats-in-the-minerals-deal-ukraine-signed-with-the-united-states
