Ukraine and the U.S. on Wednesday signed a minerals deal seen as an integral component in the effort to end the Russia-Ukraine war.
The minerals deal which gives the United States preferential access to new Ukrainian minerals aims to fund investment in Ukraine’s reconstruction.
The accord which was signed in Washington on Wednesday after months of negotiations establishes a joint investment fund for Ukraine’s reconstruction as Trump tries to secure a peace settlement in the three-year-old war in Ukraine.
Ukrainian officials hope that the deal would ensure continued U.S. support for Ukraine’s defence against Russia.
Response to the Deal
Ukrainian First Deputy Prime Minister Yulia Svyrydenko wrote on X that the accord provides for Washington to contribute to the fund.
“In addition to direct financial contributions, it may also provide NEW assistance – for example air defense systems for Ukraine,” she said.
The U.S. has been Ukraine’s single largest military donor since Russia’s 2022 invasion with aid of more than 64 billion euros ($72 billion), according to the Kiel Institute in Germany.
In announcing the deal, the U.S. Treasury Secretary , Scott Bessent noted the partnership recognized “the significant financial and material support that the people of the United States have provided to the defense of Ukraine since Russia’s full-scale invasion.”
Svyrydenko however notes that the accord allowed Ukraine to “determine what and where to extract” and that its subsoil remains owned by Ukraine.
Ukraine’s Mineral Deposits
Ukraine is rich in natural resources including rare earth metals which are used in consumer electronics, electric vehicles and military applications, among others.
The signing of the deal is significant as Trump has sometimes falsely blamed Ukrainian President Volodymyr Zelenskiy for the war with
U.S. peace proposals calling for recognition of Russia’s claim to Crimea, which it seized from Ukraine in 2014, and potentially four other Ukrainian regions.
The deal includes a requirement that Ukraine be freed from paying back the US’ previous military aid to the country even though there are no express provisions for US protection for the country in its ongoing war with Russia.
