Ukraine’s Ministry of Economy claimed that Kyiv would donate half of the money made from natural resources. The US would contribute to the fund either directly or through military support.
The United States agreed to finance to bring the country’s economy back to its feet after its war with Russia. In return, Ukraine agreed to give Washington access to its prized rare minerals.
This deal comes at the right time when the United States is having a trade war with China, where almost all countries source 90% of the world’s rare-earth reserves.
Ukraine is believed to have large quantities of critical minerals like lithium, titanium, and graphite. These vital minerals can be used in industrial infrastructure, military uses, and renewable energy.
After months of tense conversations, during which there was persistent uncertainty till the last minute due to reports of last-minute modifications to the agreement, the two countries signed the deal in Washington, DC, on Wednesday.
The agreement is a turning point in United States-Ukraine relations, especially after a stunning outburst between President Donald Trump and President Volodymyr Zelenskyy during their February White House meeting, which brought the relations between the two countries to an all-time low.
After announcing the agreement, United States Treasury Secretary Scott Bessent stated that the United States-Ukraine Reconstruction Investment Fund established is a sign to Russia that the Trump administration is dedicated to a peace process focused on a long-term, free, independent, and wealthy Ukraine.
Bessent stated that both parties were committed to creating lasting peace and prosperity in Ukraine. This deal meant Kyiv, Ukraine’s capital, could now access US military aid.
He wanted to emphasize that the rehabilitation of Ukraine would not benefit any state or individual that provided funding or supplies to the Russian war machine.
The Trump administration did not elaborate on the agreement.
Ukraine’s Ministry of Economy claimed that Kyiv would donate half of the money made from natural resources. The United States would contribute to the fund either directly or through military support.
According to the government, for the first ten years, all of the fund’s assets would be invested solely in Ukraine; after that, they will divide any earnings among the partners.
The ministry stated that the United States and Ukraine would have equal say over the decisions made with the fund.
Through this fund, Ukrainian Minister of Economy Yulia Svyrydenko stated they are gaining investment and a strategic partner committed to helping Ukraine drive economic growth and innovation.
He added that they have collaborated to create a framework that benefits both parties.
He also claimed that the United States values Ukraine’s contribution to international security and is committed to long-term peace.
Ukrainian Prime Minister Denys Shmygal stated that the deal would give Kyiv complete control over its natural resources, infrastructure, and subsurface and not interfere with its attempt to join the European Union (EU).
A source with knowledge of the negotiations criticised Ukraine on Wednesday afternoon for attempting to revisit some provisions they reportedly agreed upon over the weekend.
According to the source, the main causes of contention were the fund’s governance, transparency concerns, and measures to ensure that all funds would be completely traceable.
Representatives from both countries signed the technical documents last week.
The Trump administration has argued that advancing US business interests in Ukraine will aid in discouraging Russia from launching another attack.
It was unclear whether Ukraine would receive any security guarantees as part of Wednesday’s agreement, which needs to be approved by the Ukrainian parliament before going into force.
According to estimates, Ukraine possesses over 5% of the world’s reserves of vital minerals, which are used for producing electric cars, consumer electronics, and military gear.
The nation’s deposits had reserves of 22 of the 34 minerals that the EU considered critical.
