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US, Ukraine sign long-awaited deal pushed by Trump on rare minerals

Iran Press TV

Thursday, 01 May 2025 8:01 AM

The United States and Ukraine have signed a long-awaited deal on rare minerals pushed by President Donald Trump that helps Kiev repay roughly $175 billion provided to the ex-Soviet country for its defense in the ongoing war with Russia.

On Wednesday, Washington and Kiev inked the agreement that allows the US to have access to Ukraine's valuable rare minerals and set up the United States-Ukraine Reconstruction Investment Fund, purportedly aimed at boosting Ukraine's defense and post-war reconstruction.

Under the landmark deal, signed following months of fraught negotiations, profits and royalties from future mineral sales will be split equally, with both nations holding equal voting rights.

The agreement should be regarded as a signal to Russia that the Trump administration is "committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term," said US Treasury Secretary Scott Bassnet.

"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," he claimed in a statement.

Under the agreement, which was finalized with significant revisions, the ex-Soviet country keeps full ownership and control of its resources, while existing projects and state-owned enterprises are excluded from the deal.

According to Ukraine's Ministry of Economy, the US will contribute to the fund through direct support or military aid, while Kiev will allocate 50 percent of its natural resource revenues, with all resources invested only in Ukraine for the first decade, after which "profits may be distributed between the partners."

This partnership is seen as an economic incentive for continued US support amid Kiev's persisting war with Russia that began in February 2022.

"We are gaining not only investment, but also a strategic partner committed to working with us to drive economic growth and innovation," said Ukrainian Minister of Economy Yulia Svyrydenko in a statement.

"This agreement is the outcome of extensive negotiations, and I am grateful to both negotiating teams for their professionalism and dedication. Together, we have developed a mutually beneficial framework. It also reflects the US commitment to lasting peace in Ukraine and recognition of Ukraine's contribution to global security," she added.

Now, Kiev could be certain that US military aid given since Russia's military operation will not require repayment, meaning that the deal only covers future US military assistance, not past aid, according to the deal.

The agreement also provides opportunities for international investment, technology transfer, and non-taxed contributions.

However, it remained uncertain whether the deal, pending approval by Ukraine's parliament, contained any security guarantees for the war-ravaged country, a point of contention during negotiations.

Ukrainian President Volodymyr Zelensky had previously insisted that any deal on mineral resources should be directly linked to US and European security guarantees.

Ukraine estimates it holds around five percent of the world's critical mineral reserves—including 22 of the 34 minerals deemed essential by the European Union, which are vital for producing electronics, electric vehicles, and military equipment.