The U.S. and Ukraine agree to link security aid to future profits from Ukraine's vast mineral reserves, paving the way for increased Western investment and cooperation. Image credit: Axios
The United States and Ukraine have signed a landmark economic partnership agreement. This deal grants Washington a stake in future earnings from Ukraine’s vast mineral and oil reserves, aiming to make American investment in Ukraine’s defense and reconstruction safe.
U.S. Treasury Secretary Scott Bessent announced the agreement, marking a significant milestone in the months-long effort to tie additional U.S. aid to Kyiv to tangible long-term benefits. According to Bessent, “This agreement is a cornerstone of our commitment to Ukrainian peace, sovereignty, and prosperity. It shows the important assistance that the United States has already provided and guarantees we can continue to provide that assistance responsibly and sustainably.”
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The agreement establishes a joint U.S.-Ukraine Reconstruction Investment Fund, representing a new era for Western investment in Ukraine’s future. This fund combines shared economic interests with military aid. Under the agreement, Ukraine will retain full ownership of its natural resources, while U.S. institutions and businesses will have the right to co-invest in critical mineral projects, such as lithium, titanium, and graphite.
These minerals are central to the world’s tech, defense, and renewable energy industries. The deal also allows U.S. military aid to qualify as contributions to the new investment fund, enabling Washington to recover some of the approximately $123 billion it has spent backing Ukraine since Russia’s full-scale invasion in 2022.
Ukraine Deputy Prime Minister Yulia Svyrydenko emphasized that the agreement preserves Ukraine’s sovereignty over resources. “All minerals and energy reserves remain Ukrainian property,” she said. “The partnership is 50:50 — we are not selling our land or our future. We are investing in it.” The deal requires endorsement from the Ukrainian parliament but is already being seen as crucial for upholding U.S. military assistance.
The agreement has significant implications beyond Ukraine, particularly given the global demand for rare earth elements and the intensifying U.S.-Chinese trade war. Ukraine’s mineral wealth has taken on new strategic value, with the country possessing 22 of the 50 minerals identified as critical by the U.S. Geological Survey. This status could make Ukraine a leading Western supplier.
President Trump framed the deal as a pragmatic move to “protect the American taxpayer” and ensure the U.S. “gets something back” for its unprecedented aid. Officials from both countries assured that the agreement does not retroactively apply to aid given before signing. The signing follows a historic in-person encounter between Trump and Zelensky at Pope Francis’ funeral, which helped end the stalemate.
While early concerns were raised in Kyiv about the optics of “selling off” Ukrainian holdings, officials have embraced the deal as a political convenience to continue American arms and financial aid. Ukrainian Prime Minister Denys Shmyhal described it as “a strategic agreement on joint investments in the development and recovery of Ukraine.” He asserted that it would “ensure that American investment means American interest in our security.”
As of now, the Kremlin has not commented on the news. However, analysts believe the agreement sends a clear message that U.S. support for Ukraine is becoming increasingly entrenched and economically driven. With estimated reconstruction needs in the hundreds of billions and fighting still ongoing, this agreement may reshape the future of Western investment in Ukraine
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