Ukraine and the United States have signed an agreement to provide Washington with access to valuable rare minerals and fund reconstruction efforts in the war-torn country.
The two countries signed the accord in Washington, DC, on Wednesday after months of fraught negotiations, with uncertainty persisting until the last moment following reports of 11th-hour proposals to change aspects of the deal.
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end of listThe agreement marks a breakthrough in US-Ukraine ties after relations reached a nadir following a spectacular blow-up between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy during their meeting at the White House in February.
Announcing the agreement, US Treasury Secretary Scott Bessent said the creation of the United States-Ukraine Reconstruction Investment Fund was a signal to Russia that the Trump administration was “committed to a peace process centred on a free, sovereign, and prosperous Ukraine over the long term”.
“President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides’ commitment to lasting peace and prosperity in Ukraine,” Bessent said in a statement.
“And to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine.”
The Trump administration did not provide further details of the deal.
Ukraine’s Ministry of Economy said the US would contribute to the fund directly or through military assistance, and Kyiv would contribute 50 percent of revenues from the exploitation of natural resources.
The ministry said all of the fund’s resources would be exclusively invested in Ukraine for the first 10 years, after which “profits may be distributed between the partners”.
The US and Ukraine would have equal decision-making power over the fund, the ministry said, with the deal only covering future US military assistance, not past aid.
“We are gaining not only investment, but also a strategic partner committed to working with us to drive economic growth and innovation,” Ukrainian Minister of Economy Yulia Svyrydenko said in a statement.
“This agreement is the outcome of extensive negotiations, and I am grateful to both negotiating teams for their professionalism and dedication. Together, we have developed a mutually beneficial framework. It also reflects the US commitment to lasting peace in Ukraine and recognition of Ukraine’s contribution to global security.”
In a Telegram post shortly before the deal was signed, Ukrainian Prime Minister Denys Shmygal said the deal would leave Kyiv with “full control over subsoil, infrastructure, and natural resources”, and not interfere with its bid to join the European Union.
Ukraine and the US had planned to sign the agreement weeks ago, but a fiery clash between Trump and Zelenskyy in front of the world’s news media on February 28 temporarily derailed talks.
Joint fund
Ukraine has been pushing for security guarantees as part of any deal to halt Russia’s three-year invasion.
The Trump administration has argued that boosting US business interests in Ukraine will help deter Russia from future aggression in the event of a ceasefire.
It was not clear if Wednesday’s deal, which must be ratified by the Ukrainian parliament to take effect, included any security guarantees for Ukraine.
Ukraine has estimated that it holds about 5 percent of the world’s reserves of critical minerals, which are used in the manufacturing of consumer electronics, electric vehicles and military hardware.
The country’s deposits include reserves of 22 out of the 34 minerals classified as critical by the EU.
Source: Al Jazeera
