US and Ukraine sign minerals deal that solidifies investment in Kyiv’s defense against Russia

The US and Kyiv on Thursday, May 1, 2025, signed an agreement to share profits and royalties from the future sale of Ukrainian minerals and rare earths.

The agreement seals a deal that Donald Trump has said will provide an economic incentive for the US to continue to invest in Ukraine’s defense.

Trump has also said that the deal also provides incentives for the reconstruction of Ukraine’s defense after he brokers a peace deal with Russia.

The minerals deal, which has been the subject of tense negotiations for months and nearly fell through hours before it was signed, will establish a US-Ukraine Reconstruction Investment Fund.

Trump’s administration has said the investment fund will begin to repay an estimated $175bn in aid provided to Ukraine since the beginning of the war.

Scott Bessent, the US treasury secretary, in a statement:

“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”

“President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides’ commitment to lasting peace and prosperity in Ukraine.

“And to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine.”

Ukraine’s first deputy prime minister, Yulia Svyrydenko, confirmed in a social media post that she had signed the agreement on Wednesday.

“Together with the United States, we are creating the fund that will attract global investment into our country,” she wrote.

The deal still needs to be approved by Ukraine’s parliament.

Ukrainian officials have divulged details of the agreement which they portrayed as equitable and allowing Ukraine to maintain control over its natural resources.

The Ukrainian prime minister, Denys Shmyhal, said that the fund would be split 50-50 with between the US and Ukraine and give each side equal voting rights.

Ukraine would retain “full control over its mineral resources, infrastructure and natural resources,” he said.

Also, it would relate only to new investments, meaning that the deal would not provide for any debt obligations against Ukraine, a key concern for Kyiv.

The deal would ensure revenue by establishing contracts on a “take-or-pay” basis, Shmyhal added.

Shmyhal on Wednesday described the deal as “truly a good, equal and beneficial international agreement on joint investments in the development and recovery of Ukraine”.

Critics of the deal had said the White House is seeking to take advantage of Ukraine by linking future aid to the embattled nation to a giveaway of the revenues from its resources.

The final terms were far less onerous for Ukraine than those proposed initially by Bessent in February.

It included a clause that the US would control 100% of the revenues from the fund.

On Wednesday Trump said a US presence on the ground would benefit Ukraine.

“The American presence will, I think, keep a lot of bad actors out of the country or certainly out of the area where we’re doing the digging,” he said at a cabinet meeting.

Trump said he told Ukrainian president Volodymyr Zelenskyy during a recent meeting at the Vatican that signing the deal would be a “very good thing”.

This, he said, was because “Russia is much bigger and much stronger”.

He was speaking at a town hall with NewsNation after the deal had been signed.

Asked whether the minerals deal was going to “inhibit” Russian president Vladimir Putin, Trump said “well, it could.”

UK foreign secretary David Lammy welcomed the agreement in a post on X, adding that “the UK’s support for Ukraine remains steadfast”.

It was unclear up until the last moment whether the US and Ukraine would manage to sign the deal.

Washington on its part, was reportedly pressuring Ukraine to sign additional agreements, including on the structure of the investment fund, or to “go back home”.

That followed months of strained negotiations.

During these negotiations, the US regularly delivered last-minute ultimatums while cutting off aid and other support for Ukraine in its defence against Russia.

Ukraine’s prime minister had earlier said he expected the country to sign the minerals deal with the US in “the next 24 hours”.

However, reports emerged that Washington was insisting Kyiv sign three deals in total.

The Financial Times said Bessent’s team had told Svyrydenko, who was reportedly en route to Washington DC, to “be ready to sign all agreements, or go back home”.

Bessent later said the US was ready to sign though Ukraine had made some last-minute changes.

Online media reports say that Ukraine believed the two supplementary agreements, supposedly on an investment fund and a technical document, required more work.

The idea behind the deal was originally proposed by Ukraine, looking for ways to offer economic opportunities that might entice Trump to back the country.

But Kyiv was blindsided in January when Trump’s team delivered a document that would essentially involve handing over the country’s mineral wealth with little by way of return.

Since then,  according to The Guardian, there have been various attempts to revise and revisit the terms of the deal.

There was also a planned signing ceremony that was aborted after a disastrous meeting between Trump and Zelenskyy at the White House in February.

Earlier this month, it was revealed that the Ukrainian justice ministry had hired US law firm Hogan Lovells to advise on the negotiations over the deal.

This is according to filings with the US Foreign Agents Registration Act registry.

In a post on Facebook, Ukraine’s first deputy prime minister Yulia Svyrydenko gave further details of the fund, which she said would “attract global investment”.

She confirmed that Ukraine would retain full ownership of resources “on our territory and in territorial waters belong to Ukraine”.

“It is the Ukrainian state that determines where and what to extract,” she said.

There would be no changes to ownership of state-owned companies, she said, “they will continue to belong to Ukraine”.

That included companies such as Ukrnafta, Ukraine’s largest oil producer, and nuclear energy producer Energoatom.

Income would come from new licences for critical materials and oil and gas projects, not from projects which had already begun, she said.

Income and contributions to the fund would not be taxed in the US or Ukraine, she said, “to make investments yield the greatest results”.

She added that technology transfer and development were a “key” part of the agreement.

Washington would contribute to the fund, she said.

“In addition to direct financial contributions, it may also provide new assistance, for example air defense systems for Ukraine,” she said.

Washington did not directly address that suggestion.

Ukraine holds some 5% of the world’s mineral resources and rare earths, according to various estimates.

But work has not yet started on tapping many of the resources and many sites are in territory now controlled by Russian forces.

Razom for Ukraine, a US nonprofit that provides medical and humanitarian aid to Ukraine and advocates for US assistance, welcomed the deal.

It also encouraged the Trump administration to increase pressure on Vladimir Putin to end the invasion.

Mykola Murskyj, director of advocacy for Razom, said in a statement:

“We encourage the Trump administration to build on the momentum of this economic agreement by forcing Putin to the table through sanctions, seizing Russia’s state assets to aid Ukraine, and giving Ukraine the tools it needs to defend itself.” 

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