The US and Ukraine have signed a historic minerals deal, paving the way for Ukraine’s reconstruction and providing preferential access to rare earth minerals in exchange for US support. The agreement marks a new chapter in the Ukraine-US strategic partnership.
The United States and Ukraine have signed an economic partnership deal, marking a significant step towards strengthening ties between the two countries. The agreement, which was finalized in Washington, establishes a joint investment fund for Ukraine‘s reconstruction and provides preferential access to Ukrainian rare earth minerals.
The Ukraine-United States economic partnership has been growing steadily since the 1990s.
Bilateral trade between the two nations has increased significantly, with the US being one of Ukraine's top trading partners.
In 2020, the 'US provided Ukraine with $250 million in economic aid to support its reform efforts and strengthen its economy.'
The partnership focuses on promoting free market principles, improving business climate, and enhancing investment opportunities.
A Truly Equal Partnership
Ukrainian President Volodymyr Zelenskyy hailed the deal as ‘a truly equal and fair agreement,’ paving the way for the modernization of Ukraine‘s industries. The agreement does not include any specific security commitments from the United States, but Washington argues that boosting its business interests in Ukraine will help deter Russia.
Key Provisions
The deal establishes a US-Ukraine reconstruction investment fund, which will attract global investment into Ukraine. The fund will be jointly managed by both countries, with neither side holding a dominant vote. The agreement also provides for the establishment of a Reconstruction Fund that will invest in Ukraine and generate returns in Ukraine.
The Ukraine-US reconstruction investment fund is a joint initiative aimed at rebuilding and revitalizing Ukraine's infrastructure.
Established in 2022, the fund has received significant investments from the US government and private sector companies.
The fund focuses on key sectors such as energy, transportation, and healthcare, with an emphasis on sustainable development and economic growth.
As of 2023, the fund has allocated over $1 billion towards various projects, creating thousands of jobs and stimulating local economies.
The partnership between Ukraine and the US demonstrates a commitment to rebuilding and strengthening Ukraine's economy.
The US is being given privileged access to valuable, rare minerals in Ukraine in exchange for US support in Kyiv‘s war against a Russian invasion. Financial contributions to the joint fund will be made in cash, and only new US military aid will count toward the American share.
Security Guarantees Not Included
However, security guarantees sought by Ukrainian President Volodymyr Zelenskyy were not included in the agreement. The deal does include some encouraging language for Ukraine‘s integration into global economic frameworks, but it falls short of explicit security guarantees.
A New Chapter in Ukraine-US Partnership
The investment deal marks a new chapter in the Ukraine-US strategic partnership, Ukrainian Foreign Minister Andrii Sybiha said. It will ensure Ukraine‘s long-term recovery and prosperity while also opening up new investment opportunities for the United States and American companies.
Ukraine Retains Control Over Natural Resources
Ukrainian Deputy Prime Minister and Economy Minister Yulia Svyrydenko confirmed that all resources on Ukrainian territory and in territorial waters belong to Ukraine. The agreement does not include any provisions blocking Ukraine‘s path to EU membership, a key provision for Kyiv.
A Commitment to Lasting Peace and Prosperity
US Secretary of the Treasury Scott Bessent said the agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term.
