Ukraine and United States finalize a minerals agreement pursued by Trump

On Wednesday, Ukraine and the United States finalized a significant agreement, heavily advocated by President Donald Trump, which grants the U.S. preferential access to new mineral deals in Ukraine and allocates funds for the country’s reconstruction efforts.

The accord was signed in Washington following months of challenging negotiations, with uncertainty lingering until the last moment due to a last-minute complication. This agreement establishes a joint investment fund aimed at supporting Ukraine’s reconstruction as Trump seeks to facilitate a peace resolution in the ongoing conflict with Russia.

The deal is crucial for Kyiv’s attempts to restore relations with Trump and the White House, which had deteriorated since his inauguration in January. Ukrainian officials are optimistic that this agreement will help secure ongoing U.S. support for Ukraine’s defense against Russian aggression. A photo shared on X by the U.S. Treasury depicted U.S. Treasury Secretary Scott Bessent and Ukrainian First Deputy Prime Minister Yulia Svyrydenko signing the agreement, which the Treasury stated clearly signals the Trump Administration’s commitment to a free, sovereign, prosperous Ukraine.

Svyrydenko stated that the agreement empowers Ukraine to decide on extraction methods and locations, affirming that the subsoil resources remain under Ukrainian ownership. Ukraine possesses abundant natural resources, including rare earth metals essential for consumer electronics, electric vehicles, and military uses.

Currently, China dominates the global rare-earth mining sector, amidst a trade conflict with the U.S. following significant tariff hikes during Trump’s administration. Additionally, Ukraine holds substantial reserves of iron, uranium, and natural gas.

Ukraine governs extraction decisions

Svyrydenko emphasized that under the agreement, Ukraine has no debt obligations to the United States, a crucial aspect of the protracted negotiations between the two nations. She also noted that the deal aligns with Ukraine’s constitution and its aspirations to join the European Union, which are vital components of Ukraine’s negotiating strategy.

While the minerals agreement and U.S. peace initiatives have been discussed separately, they both reflect Washington’s stance towards Ukraine and Russia. Trump’s administration has altered U.S. policy by adopting a more lenient approach towards Russia and occasionally misattributing the war’s blame to Ukrainian President Volodymyr Zelenskiy.

U.S. peace proposals have suggested acknowledging Russia’s claim to Crimea, annexed from Ukraine in 2014, along with potentially four other Ukrainian territories. Zelenskiy has firmly stated that Kyiv would never agree to this, as it would violate Ukraine’s constitution.

Svyrydenko remarked on X that the Agreement importantly signals to global partners that long-term cooperation with Ukraine is not only feasible but also dependable. A draft of the U.S.-Ukraine agreement reviewed by Reuters earlier indicated that Ukraine successfully eliminated any obligation to repay the U.S. for previous military aid, a point Kyiv had vigorously contested.

However, the draft did not offer any definitive U.S. security assurances for Ukraine, which was one of its primary objectives. In a separate discussion, Ukraine has been in talks with European allies about establishing an international force to bolster Ukraine’s security contingent upon a peace deal with Russia.