In a significant development, the White House announced on Wednesday night that it has finalized an ‘economic partnership’ with Ukraine, aimed at facilitating access to essential minerals and natural resources from the war-torn nation.
After weeks of intense negotiations, the agreement has been established as the United States-Ukraine Reconstruction Investment Fund. Treasury Secretary Scott Bessent remarked that this partnership enables Washington to ‘invest alongside Ukraine’ to unlock its valuable assets, accelerate economic recovery, and secure repayment for U.S. military aid, as demanded by President Donald Trump.
‘We have made a deal that clearly signals to Russia the commitment of the Trump Administration to a peace process focused on a free, sovereign, and prosperous Ukraine,’ Bessent stated in an official release.
He emphasized that President Trump envisioned this collaboration as a symbol of mutual dedication between the American and Ukrainian people toward achieving lasting peace and prosperity.
‘No state or person who financed or supported the Russian war machine will be allowed to benefit from the reconstruction of Ukraine,’ he added.
Yulia Svyrydenko, Ukraine’s deputy prime minister and economy minister, articulated on X that the Ukrainian state retains control over the extraction and management of its subsoil resources.
According to Svyrydenko, the investment fund will be jointly managed by Ukraine and the United States, with neither party holding a dominant vote. The fund will be financed through new licenses for Ukrainian oil, gas, and critical minerals, allocating 50% of all revenue generated from these licenses to the fund.
‘Its funds will focus on investing in projects for the extraction of critical materials, oil, and gas, as well as related infrastructure and processing facilities. Specific investments will be jointly selected by both Ukraine and the United States,’ she wrote on X.
Though Svyrydenko hinted at potential contributions from the U.S. to the fund, details regarding the amount remain undisclosed. She also stated that contributions would not be taxed in either country.
Former Russian President Dmitry Medvedev quickly reacted to the news, framing the partnership as a setback for Kyiv. Medvedev claimed on Telegram, ‘Trump has finally forced the Kiev regime into paying for American aid with minerals.’
He further criticized the deal, stating, ‘Now they will have to pay for military supplies with the national wealth of a disappearing country.’
While the exact quantity and value of Ukraine’s rare earth elements are still undetermined, experts highlight that outdated geological surveys necessitate conducting new assessments.
Although President Trump has previously quoted Ukraine’s mineral wealth as being around $500 billion, a more realistic valuation from experts suggests that it may be closer to $12 billion.
‘Rare earth is called rare for a reason, and they have a lot,’ Trump noted during a Cabinet meeting prior to the agreement. ‘We made a deal to ensure our investment is secure, allowing us to commence extraction.’
Several weeks prior, the chances of the agreement being signed by the Trump and Ukrainian President Volodymyr Zelenskyy administrations appeared slim. During Zelenskyy’s visit to Washington in February for discussions on the deal, open tensions surfaced between him and Trump, leading to a dramatic public dispute that included Vice President JD Vance.
However, Trump asserted on Wednesday that their relationship has since improved, describing their latest meeting as ‘beautiful’ and conveying confidence that Zelenskyy wishes to reach a deal to conclude the war.
According to Trump, the newly established partnership aims to provide a means for the United States to recover funds it has allocated to Ukraine during its ongoing conflict with Russia, which the State Department has estimated stands at $66.5 billion in military assistance.
Since commencing his second term a little over 100 days ago, Trump has consistently emphasized the importance of recouping at least a portion of the financial support provided to Ukraine in its struggle against the Russian invasion that has persisted for nearly three years.
U.S. national security adviser Mike Waltz spoke to Fox News on Thursday, asserting that the deal is beneficial for American taxpayers hoping to reclaim the billions invested in supporting Ukraine’s efforts.
He stated, ‘It’s beneficial for Ukraine as it facilitates growth and development, and is crucial for ensuring its security.’
The direct repayment implications of the deal remain vague, as Svyrydenko clarified that the agreement does not include provisions for any debt obligations from Ukraine to the United States.
Despite allegations of treating Russia more leniently than Ukraine in ongoing peace negotiations with both parties, Trump has recently directed his criticism toward Russian President Vladimir Putin, condemning him for conducting extensive strikes against Kyiv despite ongoing ceasefire pursuits by U.S. officials.
Even as Putin announced a temporary ceasefire beginning next week, tangible signs of a long-term cessation in military activities were lacking.
In a tragic update, Russian airstrikes on the Ukrainian port city of Odessa overnight on Wednesday resulted in the deaths of two individuals and injuries to 15 others, as reported by Ukraine’s State Emergency Service in a post on Telegram.
Nevertheless, the minerals agreement has been viewed as a hopeful stride toward establishing a more sustainable peace.
Waltz mentioned on Thursday, ‘Both sides must genuinely seek peace and a cessation of hostilities. We believe there is still a viable deal to be made.’
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