In a landmark move that could reshape Ukraine’s economic recovery and strengthen American interests, the United States and Ukraine are closer to finalising a bilateral agreement centred on Ukraine’s vast mineral wealth.
The deal, which establishes a Reconstruction Investment Fund, is expected to provide much-needed stability to war-torn Ukraine while also offering the US a return on its extensive aid to Kyiv.
Under the terms of the agreement, Ukraine will allocate half of the revenues from future monetisation of its state-owned natural resources, including minerals, hydrocarbons, oil, and natural gas, to the fund. This fund will be jointly managed by both nations.
The primary objective is to attract investment for the development, processing, and monetisation of Ukraine’s natural assets, with a particular focus on the oil, gas, and rare earth sectors.
The deal has been spearheaded by key figures from both governments. Ukrainian President Volodymyr Zelenskyy has actively pursued US support, framing the agreement as a crucial step in securing Ukraine’s future. US President Donald Trump has emphasized the need for the US to recover some of the financial aid provided to Ukraine over the past three years, stating that he wants to “get that money back.”
It is anticipated that they will sign a “preliminary” agreement in Washington, US, on Friday.
Ukrainian Prime Minister Denys Shmyhal confirmed that a final version of the agreement had been reached, while Deputy Prime Minister and Justice Minister Olha Stefanishyna played a central role in negotiations. US Treasury Secretary Scott Bessent and Ukraine’s Foreign Minister Andrii Sybiha were also involved in shaping the deal.
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Mineral wealth
Ukraine’s vast mineral wealth makes it a strategic partner in global resource markets. The country holds approximately five percent of the world’s critical raw materials, including significant deposits of graphite, titanium, lithium, and rare earth metals—resources that are essential for industries ranging from defense to electric vehicles.
With growing tensions between the US and China, securing alternative sources of these materials has become a priority for Washington.
The agreement has drawn mixed reactions from global leaders. Russian President Vladimir Putin was unconcerned about the deal, asserting that Russia possesses far greater reserves of similar minerals and remains open to foreign investment in its own resource sector.
Zelenskyy, while optimistic about the agreement, initially rejected a US request for $500 billion in mineral wealth, signaling Ukraine’s reluctance to cede too much control over its resources.
The timing of the deal is significant, as Ukraine continues to battle Russian forces in an ongoing war that has devastated its economy. The agreement is seen as an effort to repay some of the financial aid provided by the US while strengthening Ukraine’s post-war economic prospects. The deal also marks a shift in US policy, with Trump adopting a more transactional approach compared to previous administrations.
As negotiations continue, the world will be watching closely to see how this partnership unfolds. While the deal promises economic relief for Ukraine, it also raises questions about the long-term implications of US financial involvement and the sovereignty of Ukraine’s natural resources. The upcoming meeting between Zelenskyy and Trump in Washington is expected to shed further light on the future of this partnership.
Picture: Le Monde
