U.S. and Ukraine Sign Landmark Minerals Deal to Bolster Reconstruction and Repay War Aid

 Washington, May 1, 2025 — The United States and Ukraine have signed a landmark agreement establishing a joint investment framework for developing Ukraine’s critical minerals and rare earth resources, in a move the Trump administration has framed as a pathway to both rebuild the war-torn country and begin repaying the $175 billion in U.S. aid provided since Russia’s full-scale invasion began.

The agreement, finalized in Washington on Wednesday after months of intense negotiations, creates the U.S.-Ukraine Reconstruction Investment Fund. The fund will allow both countries to share revenues and royalties generated from new projects involving Ukraine’s untapped mineral wealth, while ensuring Kyiv maintains full ownership and sovereign control over its natural resources and infrastructure.

“This 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,” said U.S. Treasury Secretary Scott Bessent in a statement. “President Trump envisioned this partnership to demonstrate mutual commitment to Ukraine’s recovery and to lasting peace.”

Ukraine’s First Deputy Prime Minister Yulia Svyrydenko confirmed the signing in a social media post, stating the agreement would “attract global investment” and support Ukraine’s post-war recovery. The deal now awaits ratification by Ukraine’s parliament.

Under the terms of the agreement, the fund will be co-managed by the U.S. and Ukraine on a 50-50 basis, with equal voting rights. Ukrainian Prime Minister Denys Shmyhal emphasized that Ukraine will retain full control over its resources, and that revenues will be drawn from new investments only—ensuring no existing assets are compromised or subject to foreign debt obligations.

“This is a truly equitable and beneficial international agreement focused on joint investment and Ukraine’s long-term development,” said Shmyhal. Contracts will be structured on a “take-or-pay” basis to ensure consistent revenue streams.

High Stakes and Last-Minute Diplomacy

The deal was nearly derailed in the final hours, with reports indicating that Washington pressed Ukraine to sign two supplementary agreements on fund governance and technical parameters. According to The Financial Times, U.S. negotiators told Svyrydenko she must be prepared to “sign all agreements or go back home.”

Despite tensions, both parties reached consensus after Ukraine made late-stage revisions, and U.S. negotiators relented on more aggressive provisions originally proposed in February, which would have granted Washington full control over fund revenues. Those terms had provoked concern in Kyiv over sovereignty and the perception of coercion.

Trump, speaking at a cabinet meeting following the deal, said the American presence in mining and infrastructure projects would help secure Ukraine’s reconstruction zones. “I think it will keep a lot of bad actors out of the country—or certainly out of the areas where we’re doing the digging,” he said.

At a televised town hall event, Trump said he had urged Ukrainian President Volodymyr Zelenskyy to approve the agreement during a recent meeting at the Vatican. “It’s a very good thing for Ukraine,” he remarked. “Russia is much bigger and much stronger.”

When asked whether the deal would deter Russian aggression, Trump replied, “Well, it could.”

Resource Sovereignty Preserved

Ukraine has taken pains to reassure the public and international observers that the agreement does not compromise national control over key sectors. Svyrydenko reiterated that state-owned companies, including oil producer Ukrnafta and nuclear energy firm Energoatom, will remain under full Ukrainian ownership.

Licenses for new projects involving critical minerals, oil, and gas will generate income for the fund. These contributions will not be taxed in either country to encourage maximum investment returns. Technology transfer and development are also central to the agreement, officials said.

“Resources on our territory and in our territorial waters belong to Ukraine,” Svyrydenko affirmed. “It is the Ukrainian state that determines where and what to extract.”

While Ukraine possesses an estimated 5% of the world’s mineral and rare earth reserves, many of these deposits remain undeveloped or lie in territories currently occupied by Russian forces.

Strategic Significance and Global Response

The agreement marks a turning point in U.S.-Ukraine relations, linking continued American support with a long-term economic partnership. It also represents an effort by Ukraine to attract foreign capital to jump-start reconstruction and enhance its strategic importance to Western allies.

UK Foreign Secretary David Lammy welcomed the deal, calling the UK’s support for Ukraine “steadfast” in a post on X. Meanwhile, the U.S.-based nonprofit Razom for Ukraine applauded the agreement but urged the Trump administration to go further by increasing sanctions on Russia and seizing state assets to aid Ukraine.

“This deal is a good step,” said Mykola Murskyj, Razom’s director of advocacy. “But now is the time to intensify pressure on the Kremlin and give Ukraine the tools it needs to defend itself and rebuild.”

The Ukrainian justice ministry confirmed earlier this month that it retained the legal services of U.S. law firm Hogan Lovells to assist in the final negotiations—a signal of the deal’s complexity and its geopolitical stakes.