On Wednesday, the United States and Ukraine finalized a minerals agreement following a two-month postponement, which the Trump administration described as a new commitment to Kyiv after military aid was halted.
Ukraine reported that, after extensive negotiations, it had secured important initiatives, including full control over its rare earth minerals, which are crucial for emerging technologies and largely unexploited.
Initially, Trump had proposed acquiring rights to Ukraine’s mineral resources as compensation for the significant U.S. arms provided under the Biden administration following Russia’s invasion over three years ago.
After some initial reluctance, Ukraine agreed to the minerals deal as a means to attract long-term investment from the U.S., particularly as Trump looks to drastically reduce American security commitments globally.
During the announcement of the agreement in Washington, Treasury Secretary Scott Bessent emphasized that it demonstrated the commitment of both nations to promote enduring peace and prosperity in Ukraine.
“This deal sends a clear message to Russia that the Trump administration is dedicated to a peace process that prioritizes a free, independent, and thriving Ukraine in the long run,” Bessent stated.
He added, “Let it be clear: no state or entity that has supported the Russian war effort will benefit from Ukraine’s reconstruction.”
In Kyiv, Prime Minister Denys Shmyhal expressed on national television that the agreement was “fair and advantageous.”
Through a Telegram post, Shmyhal revealed that the two countries would create a Reconstruction Investment Fund, with equal voting rights for both sides.
“Ukraine maintains complete control over its subsurface resources and infrastructure,” he commented.
Addressing a crucial concern for Kyiv, he noted that Ukraine would not be required to repay any “debts” in relation to the billions of dollars of U.S. military and other assistance provided since the commencement of the Russian invasion in February 2022.
“The profits generated by the fund will be reinvested solely in Ukraine,” he added.
Initially, Trump sought $500 billion in mineral resources—approximately four times the amount that the United States has contributed to Ukraine since the onset of the conflict.
He has been reluctant to provide security assurances to Ukraine and has dismissed its desire to join NATO.
However, Trump indicated on Wednesday that a U.S. presence would be advantageous for Ukraine.
“I believe that the American presence will prevent many problematic actors from entering the country or at least keep them out of the areas where we’re operating,” Trump mentioned during a cabinet meeting.
On Tuesday, Secretary of State Marco Rubio threatened that the Trump administration might abandon its mediating role in the conflict—something Trump had promised to resolve right from his first day in office—unless both parties present “concrete proposals.”
Trump has advocated for a resolution where Ukraine would relinquish certain territories taken by Russia, which has turned down U.S.-supported proposals for a ceasefire of at least 30 days.
President Volodymyr Zelensky has firmly ruled out making any formal concessions to Russia regarding Crimea, the peninsula annexed by Moscow in 2014, which is widely condemned by the international community.
Nevertheless, Zelensky has been careful to express support for Trump’s diplomatic efforts following an extremely contentious meeting at the White House on February 28, during which Trump and Vice President J.D. Vance criticized him for being supposedly ungrateful for U.S. support.
Zelensky was scheduled to sign the minerals agreement at the White House but was unexpectedly dismissed after the remarkable public dispute.
Estimates indicate that Ukraine possesses about 5% of the global mineral resources and rare earth elements. However, extraction efforts have not yet begun on many of these resources, with many sites currently under Russian control.
According to France’s Bureau of Geological and Mining Research, Ukraine holds approximately 20% of the world’s graphite, an essential component for electric batteries.
The country is also a significant source of manganese and titanium and claims to have the largest lithium reserves in Europe.
After more than three years of intense conflict that has resulted in tens of thousands of deaths, including among civilians, Russia currently controls roughly 20% of Ukraine’s territory.
Last August, Ukraine executed a surprise operation into Russia’s Kursk region, with Moscow asserting it had completely driven out Ukrainian forces over the weekend.
On Wednesday, Russia reported that 288 civilians lost their lives during the Kursk incursion.
