BBC News, Washington DC
US State Department correspondent
US Department of the Treasury
The United States has finalized a partnership with Ukraine centered on the joint management of its energy and mineral resources following extensive negotiations.
The two nations have established a reconstruction investment fund aimed at facilitating Ukraine’s economic revival in the aftermath of the ongoing conflict with Russia.
US Treasury Secretary Scott Bessent emphasized that this milestone indicates a mutual commitment to enduring peace and development in Ukraine. This deal is regarded as vital for Ukraine to obtain US military assistance.
Ukraine is thought to possess significant deposits of critical minerals such as graphite, titanium, and lithium, which are essential for renewable energy technologies, military use, and industrial development.
This agreement comes against the backdrop of a trade dispute between the United States and China, which currently supplies 90% of the world’s rare-earth materials.
As stated by the US Treasury on Wednesday, the newly established US-Ukraine Reconstruction Investment Fund acknowledges the considerable financial and material assistance provided by the US since Russia’s invasion in February 2022.
In a video statement, the Treasury Secretary mentioned that this deal will help “unlock Ukraine’s growth potential.”
The language used in the announcement reflects stronger support for Ukraine than typically expressed during the Trump presidency.
It makes reference to “Russia’s full-scale invasion” and asserts that “no state or individual who has financed or supported the Russian military will profit from the reconstruction of Ukraine.”
The Kremlin has yet to comment on this agreement.
Ukraine’s Deputy Prime Minister Yulia Svyrydenko, who traveled to Washington to formalize the deal, tweeted that the newly established fund aims to “draw global investments into our nation.”
She outlined that the agreement covers ventures involving minerals, oil, and gas, while ensuring that the resources remain Ukraine’s property.
The partnership will be structured on an equal basis, at 50:50, and requires ratification from Ukrainian legislators.
Under the terms, the US will provide additional support to Kyiv, including air defense systems, she added.
President Donald Trump has consistently advocated for this agreement as a condition for granting future security assurances to Kyiv.
Significantly, the draft stipulates that Ukraine will grant Washington access to specific natural resources in exchange for future security assistance from the US.
This is still far less than Trump’s initial demand for reimbursement of all military aid provided since the war began.
Ukrainian President Volodymyr Zelensky has successfully negotiated some concessions from the US.
The agreement faced delays after US officials claimed that Kyiv attempted to revise previously agreed terms.
On Wednesday, a US source involved in the discussions criticized Ukraine for reopening discussions on finalized issues as of the weekend.
The contentious topics reportedly included governance of the fund, transparency requirements, and ensuring full traceability of all funds.
Technical agreements were finalized last week by representatives from both nations.
EPA
The initial agreement was anticipated to be finalized in February but collapsed following a tense encounter at the White House, during which Trump accused Zelensky of “risking World War Three.”
This breakthrough occurred shortly after Trump and Zelensky met during Pope Francis’ memorial service, amidst ongoing discussions between Moscow and Washington regarding a potential ceasefire in Ukraine.
In a call to the NewsNation network on Wednesday evening, Trump remarked that he urged Zelensky at the Vatican to finalize the agreement.
He stated, “I was advising him that concluding this agreement would be beneficial, as Russia is considerably larger and more powerful. They are advancing steadily.”
The US president conveyed that this agreement would recoup the billions of dollars in assistance provided to Ukraine since the war began, “and potentially much more.”
Trump added, “I suggested moving forward with the rare earth minerals. They possess valuable resources that are rare in many regions, making it a significant asset.”