Following months of tension-filled negotiations, Ukraine and the US have signed a long-awaited minerals deal cast as a crucial step toward ending Russia’s war.
The deal gives the US access to Ukraine’s rare earth minerals and resources in exchange for supporting Kyiv’s defense against Russia.
American and Ukrainian officials late Wednesday announced the agreement was signed, with much credit given to US President Donald Trump.
The signed deal has changed substantially in form since late February, when Ukrainian President Volodymyr Zelensky met with Trump in the Oval Office with many anticipating he would sign the deal, but the meeting ended with a shouting match. Here is everything to know about the minerals deal:
What is the minerals deal?
The agreement establishes the United States-Ukraine Reconstruction Investment Fund that will be financed with revenue coming from new projects involving Ukraine’s resources, including raw materials and oil and natural gas, worth billions.
Kyiv and Washington will manage the fund jointly.
The agreement states that future military air from the US will be treated as its contribution to the fund, indicating that Ukraine will be required to match that with the same value in resources.
It does not consider past US aid to Ukraine as debt that must be repaid. The Trump administration initially asked for that as part of the deal, but it was eventually removed.
What is Ukraine getting from the minerals deal?
Profits from the first 10 years of the reconstruction investment fund will be ‘fully reinvested in Ukraine’s economy’, according to the agreement. It is only after the first decade that the US can benefit financially.
The nine-page deal published by the Ukrainian government on Thursday does not mention a US security guarantee, which was one of Kyiv’s initial goals.
But Ukrainian officials said the final deal provided more benefits to the country than past versions.
Notably, the agreement includes the US’s acknowledgement of Ukraine’s desire to join the European Union and does not block those ambitions.
What is the US getting out of the minerals deal?
The deal gives the US preferential rights to extracting minerals from Ukraine. Any payments and earnings will not be subject to taxes, duties or levies by Ukraine.
Ukrainian First Deputy Prime Minister Yulia Svyrydenko, who signed the deal along with US Treasury Secretary Scott Bessent, stated that ‘we have formed a version of the agreement that provides mutually beneficial conditions for both countries’.
‘This is an agreement in which the United States notes its commitment to promoting long-term peace in Ukraine and recognizes the contribution that Ukraine has made to global security by giving up its nuclear arsenal,’ she wrote on Facebook.
Bessent stated that ‘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’.
What are the rare minerals included in the deal?
Ukraine has more than 100 large deposits of critical minerals and modest reserves of natural gas and oil, according to the Kyiv School of Economics.
These include rare earths, which are over a dozen metals used in the electronics, aerospace, high-tech and green energy industries.
Some of the major materials include titanium which is used for airplanes and construction, lithium which is an essential part of batteries, and graphite and manganese which are used in the steel sector.
Natural gas and oil which are not minerals, were not initially included but ultimately were in a boost for the US.
Will the minerals deal help end the Russia-Ukraine war?
The deal is separate from negotiations with Russia to end the war on Ukraine. Negotiations with Russia are ongoing but do not appear to be gaining traction, as Moscow has refused a 30-day ceasefire agreement brought by the US.
What the deal does provide is added support for Ukraine, which has argued that the West should help prevent Russia from obtaining the mineral resources.
Zelensky said the minerals deal was signed as ‘the first result of the Vatican meeting’ he had with Trump during Pope Francis’ funeral on Saturday.
‘President Trump and I used every minute of our time to the fullest,’ said Zelensky. ‘I am grateful for that.’
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