The US and Ukraine have signed a landmark agreement giving the US preferential access to new Ukrainian minerals deals and funding investment in Ukraine’s reconstruction, marking a significant step forward in their bilateral relations.
The United States and Ukraine have signed a landmark agreement that will give the U.S. preferential access to new Ukrainian minerals deals and fund investment in Ukraine‘s reconstruction, marking a significant step forward in their bilateral relations.
The Ukraine-US partnership has been a cornerstone of international relations since the early 1990s.
The two countries have maintained strong diplomatic ties, with Ukraine being one of the largest recipients of US foreign aid.
The partnership focuses on security cooperation, economic development, and democratic governance.
In recent years, the US has provided significant support to Ukraine in its efforts against Russian aggression, including military aid and sanctions against Russia.
Bilateral trade between the two countries has also increased, with the US being one of Ukraine's largest trading partners.
The deal is part of a broader effort to promote long-term peace in Ukraine and recognize the country’s contribution to global security by giving up its nuclear arsenal. The agreement will create a joint reconstruction and investment fund, governed by three board members from each country, where each side will receive half of royalties, license fees, and other proceeds from national resource projects in Ukraine.
The U.S. will have first right of refusal on buying the resources or designating the buyer, and the deal is expected to attract global investment to Ukraine. Ukrainian Economy Minister Yulia Svyrydenko hailed the agreement as a way to attract foreign investment and promote economic growth.
Ukraine's economy is a mixed market-oriented economy, with a GDP of approximately $142 billion as of 2022.
The country has a diverse industrial base, with major sectors including steel, machinery, and automotive production.
Ukraine is also a significant agricultural producer, accounting for around 10% of global wheat exports.
However, the economy faces challenges due to ongoing conflict in eastern regions, corruption, and dependence on Russian energy imports.
The White House says the deal will cover a range of sectors, including minerals, hydrocarbons, oil, gas, and related infrastructure development. The U.S. will have priority access to Ukraine‘s critical mineral reserves, which are key components in certain batteries and other technologies that are in demand.
The investment projects covered by the agreement will be financed through a 50-50 partnership between the U.S. and Ukraine, with no debt obligations for either side. This is seen as a significant development, following tense exchanges between the Trump administration and Volodymyr Zelenskyy, Ukrainian President over a previous deal.
The minerals deal could restore constructive relations between the two countries by defining the format of further U.S. military and financial support to Ukraine. According to ‘ideally,’ the agreement could help stabilize the region and promote economic growth, said Volodymyr Landa, a senior economist at the Centre for Economic Strategy in Kyiv.
The deal is also seen as a victory for Ukraine, which has faced significant challenges in recent years, including the ongoing conflict with Russia. With the signing of this agreement, Ukraine takes a major step forward in its reconstruction and development efforts, and the U.S. demonstrates its commitment to supporting the country’s long-term success.
Located in Eastern Europe, Ukraine is a country with a rich history dating back to the Kievan Rus' state.
With a population of approximately 42 million people, it shares borders with Russia, Belarus, Poland, Slovakia, Hungary, Romania, and Moldova.
The capital city is Kyiv, known for its stunning architecture and cultural heritage.
Ukraine has a diverse economy, with major industries including agriculture, manufacturing, and energy production.
