US, Ukraine ink minerals deal, bolstering Kyiv's defense against Russia
What's the story
The United States and Ukraine have signed a minerals agreement to boost Kyiv's defense and reconstruction efforts. The pact was signed after months of intense negotiations that had nearly collapsed hours before finalization. The deal will create a US-Ukraine Reconstruction Investment Fund, and according to the Donald Trump administration, it will start repaying an estimated $175 billion in aid given to Ukraine since the start of the war.
Agreement details
Fund to share profits from Ukrainian mineral sales
The minerals deal will involve sharing of profits and royalties from future sales of Ukrainian minerals and rare earths. "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," US Treasury Secretary Scott Bessent said. He also clarified that no state or individual who funded or supplied the Russian war machine will benefit from Ukraine's reconstruction.
Confirmation
Ukrainian officials confirm signing of minerals deal
Yulia Svyrydenko, Ukraine's first deputy PM, confirmed her signing, saying that together with the US, they are creating a fund that will attract global investment into their country. The agreement still needs to be approved by parliament, but many Ukrainian officials see it as fair and allowing them to keep control of their natural resources. Ukraine is believed to have significant quantities of minerals like graphite, titanium, and lithium. They are used in renewable energy, military applications, and industrial infrastructure.
Resource control
Ukraine retains control over resources, tax-free income
Svyrydenko also confirmed that Ukraine would remain the full owner of resources "on our territory and in territorial waters that belong to Ukraine." She added that it is the Ukrainian state that decides where and what to extract. There will be no changes to the ownership of state-owned companies, which include Ukrnafta and Energoatom. Income from new licenses for critical materials and oil and gas projects won't be taxed in either country.
Fund management
Fund distribution and control over resources
Ukrainian PM Denys Shmyhal said the fund will be equally divided between the US and Ukraine, giving both parties equal voting rights. He assured that Ukraine would have full control over its mineral resources, infrastructure, and natural resources. The deal is tailored only for new investments and doesn't burden Ukraine with any debt obligations, which was a major concern for Kyiv. Under the deal, the US would also contribute new assistance to Kyiv, such as air defense systems.