U.S. and Ukraine Forge Economic Partnership for Mineral Access and Reconstruction

A joint economic investment agreement has been signed between Ukrainian and U.S. officials. This deal grants the U.S. access to Ukrainian rare earth minerals, according to an announcement from the Treasury Department. The agreement establishes a "United States-Ukraine Reconstruction Investment Fund," described as an "economic partnership."

Yulia Svyrydenko, Ukraine's economic development minister, confirmed the deal's signing. She explained that it is a 50/50 partnership between the U.S. and Ukraine, focusing on the development of mineral, oil, and gas projects. The funding will come from direct investment, future U.S. aid, and revenue from new mineral licensing deals, without creating any Ukrainian debt obligations.

The U.S. will contribute to the fund through direct financial input or new military assistance, with the agreement emphasizing future military aid. Ukraine will contribute 50% of royalties from future oil, gas, and mineral licenses. Ukraine will retain ownership of its natural resources, and the fund's investments will be limited to resource and infrastructure projects within Ukraine. Profits will be reinvested in the Ukrainian economy for the first decade, with distribution between partners possible afterward.

A U.S. government agency official stated that the joint fund will make strategic investments in critical minerals, hydrocarbons, natural resources, and related infrastructure in Ukraine. This is intended to diversify and secure supply chains vital to U.S. economic prosperity and national security. The fund will also select critical minerals for the U.S. to acquire.

The deal was previously discussed by President Trump, who framed it as a way for Ukraine to repay the U.S. for military aid. Ukraine is estimated to possess approximately 5% of the world's rare earth element reserves, which are crucial for electronics, defense technology, and energy projects. Some of these reserves are located in areas of eastern Ukraine currently occupied by Russia.

President Trump has presented the mineral deal as a key component of his broader strategy to mediate an end to the Russia-Ukraine war. However, negotiations have faced challenges, with threats to withdraw unless progress is made. Trump has also criticized Ukrainian President Zelenskyy, while simultaneously threatening to tighten sanctions on Russia.