US, Ukraine sign deal giving America ‘preferential access’ to minerals wealth

Ukraine and Washington have formalized an agreement that will allow America preferential access to the extensive critical minerals and natural resources of Ukraine, just days following the meeting between US President Donald Trump and Ukrainian President Volodymyr Zelensky at Pope Francis’ funeral. The two parties provided minimal specifics regarding the terms of the agreement, which they referred to as the United States-Ukraine Reinvestment Fund. 

However, it is anticipated that this will grant the US access to Ukraine’s precious rare earth minerals while offering Kyiv some degree of reassurance about ongoing American support amid its prolonged conflict with Russia. 

The two nations finalized the agreement late on Wednesday, Washington time, after several months of often tense discussions. Doubts lingered until the very end, with reports of a last-minute complication emerging. The agreement creates a cooperative investment fund aimed at facilitating Ukraine’s reconstruction as Trump seeks to attain a diplomatic resolution to Russia’s three-year-long war in Ukraine. 

This is pivotal to Kyiv’s attempts to restore relations with Trump, which deteriorated following his inauguration in January. A tumultuous meeting between Trump and Zelensky at the Oval Office on February 28 concluded with the Ukrainian president departing the White House prematurely and led the US to temporarily halt military assistance and intelligence sharing with Ukraine. They also failed to finalize the anticipated minerals agreement.

Trump has frequently criticized Zelensky, stating that he did not “have the cards” necessary to win the war and attributing the ongoing violence to his refusal to relinquish Crimea.

However, in recent days, Trump has also criticized Russian President Vladimir Putin, asserting that he is hindering negotiations with his “very bad timing” by executing lethal attacks on Kyiv. Trump and Zelensky convened at St Peter’s Basilica on Saturday, without advisers, just minutes ahead of the Pope’s funeral. Zelensky later expressed that their meeting had the potential to be historic, while the White House described it as productive.

US Treasury Secretary Scott Bessent and Ukrainian First Deputy Prime Minister Yulia Svyrydenko were captured signing the minerals agreement on Wednesday in a photograph shared on X by the Treasury.

 “This agreement clearly communicates to Russia that the Trump administration is dedicated to a peace initiative focused on a free, sovereign, and prosperous Ukraine in the long run,” Bessent stated in a report by The New York Times.

President Trump imagined this partnership between the American people and the Ukrainian people to demonstrate the dedication of both parties to lasting peace and prosperity in Ukraine. “And to clarify, no nation or individual that has financed or backed the Russian war effort will be allowed to benefit from the rebuilding of Ukraine.

Following the signing of the deal, Trump remarked that it – “in theory” – signifies that the US would gain more from Ukraine than it invested. “I wanted to be protected,” he mentioned, adding that he did not wish to appear “foolish” by not recouping funds for the investment.

For Ukraine, the pact is regarded as vital to securing its access to future US military assistance. “Indeed, this is a strategic agreement for establishing an investment partner fund,” Ukraine Prime Minister Denys Shmyhal stated.  “This is genuinely an equitable and favorable international agreement on collective investment in the advancement and reconstruction of Ukraine between the governments of the United States and Ukraine. ”

Svyrydenko posted on X that the agreement also allowed for Washington to contribute to the fund. “Besides direct financial contributions, it could also provide NEW assistance – for instance, air defense systems for Ukraine,” she mentioned. Washington has been Ukraine’s largest military benefactor since Russia’s invasion in 2022, offering aid exceeding $US72 billion ($112 billion), as reported by the Kiel Institute in Germany. Before the signing, Trump reiterated on Wednesday that the US should gain something from its assistance to Kyiv, which led to efforts to secure a deal regarding Ukraine’s abundant rare earth mineral reserves. 

The US has sought access to over 20 raw materials considered strategically essential to its interests, including some non-minerals such as oil and natural gas. 

Included are Ukraine’s titanium reserves, utilized for manufacturing aircraft wings and other aerospace products, and uranium, which is used for nuclear energy, medical tools, and weaponry. Ukraine also possesses lithium, graphite, and manganese, which are components in electric vehicle batteries. 

After Kyiv perceived the initial US draft of the agreement as favoring American interests excessively, it proposed new terms to address those issues. According to Shmyhal, the newest version would establish a balanced partnership between the two nations and endure for 10 years. Financial contributions to a joint fund would occur in cash, and only fresh US military aid would be counted toward the American portion. 

Aid provided prior to the signing of the agreement would not be included. Unlike a former draft, the agreement would not hinder Ukraine’s pursuit of European Union membership – a crucial element for Kyiv. The Ukrainian cabinet sanctioned the agreement on Wednesday, granting Svyrydenko – who traveled to Washington to assist in finalizing the agreement – the authority to sign it. It must still be ratified by the Ukrainian parliament before it can come into effect. In revealing the agreement, the US Treasury stated that the partnership acknowledged “the considerable financial and material support that the citizens of the United States have extended to the defense of Ukraine since Russia’s large-scale invasion. ” 

The agreement occurs amid difficult progress in Washington’s efforts to halt the conflict. Western European leaders have accused Putin of delaying while his forces aim to seize more Ukrainian territory. Russia has taken nearly one-fifth of Ukraine’s land since Moscow’s troops launched a full-scale invasion on February 24, 2022. 

Putin endorsed calls for a ceasefire prior to peace negotiations, Kremlin spokesperson Dmitry Peskov stated during his daily conference call with reporters, adding that “before it’s finalized, it’s essential to address several questions and clarify a few nuances. ”

Trump has repeatedly described the conflict as a waste of lives and resources from American taxpayers – a feeling he reinforced on Wednesday during his cabinet meeting.

Russia has effectively rejected a US proposal for an immediate and comprehensive 30-day ceasefire, making its agreement contingent upon a halt to Ukraine’s mobilization activities and Western military assistance to Kyiv.

Russian Foreign Minister Sergey Lavrov mentioned on Wednesday that Ukraine accepted an unconditional ceasefire solely because it was experiencing difficulties on the battlefield, where Russian forces maintained an upper hand.

In the meantime, per a United Nations report presented this week in New York, Ukrainian civilians have been killed or injured in attacks every day throughout this year.
The UN Human Rights Office noted in the report that during the first three months of this year, it verified 2641 civilian casualties in Ukraine, which was almost 900 more a year ago.