US and Ukraine Sign Historic Agreement on Minerals and Create Reconstruction Investment Fund

A historic agreement on natural resources was signed by the US and Ukraine, while a joint investment fund for reconstruction is being established. After a two-month delay and prolonged negotiations, the US and Ukraine reached this exceptionally significant agreement on minerals, as well as the formation of a shared investment fund for the country’s reconstruction, which remains at war with Moscow following Russia’s invasion in February 2022. As announced last Thursday, May 1 (Greek time), by the US Treasury Department, the agreement primarily focuses on rare metals and minerals considered strategically important. For Ukraine, this development is critical as it may be linked to securing future military aid from the US. President Biden had already expressed his intention in February to gain access to Ukraine’s rare earth elements as “compensation” for the billions of dollars in aid Washington has provided to Kyiv. However, negotiations had ‘frozen’ after an intense meeting at the White House between Donald Trump and Volodymyr Zelenskyy, significantly complicating the achievement of an agreement. Initially demanding access to Ukraine’s mineral deposits as compensation for the billions in military assistance provided by the Biden administration since 2022, Ukraine eventually accepted the deal in exchange for long-term investments. During the signing ceremony, US Treasury Secretary Scott Besed emphasized that the agreement demonstrates both countries’ commitment to ‘lasting peace and prosperity’ in Ukraine. He noted that ‘no state or individual involved in the Russian war machine will benefit from Ukraine’s reconstruction.’ Trump added that ‘the American presence on the ground will act as a deterrent against harmful factors,’ while Secretary of State Marco Rubio warned that the US might fully withdraw from mediation efforts if there are no tangible steps toward a peaceful resolution. The agreement ensures the creation of a Reconstruction Fund with equal representation (50-50) between the US and Ukraine, waives any debt repayment for American military aid since 2022, reinvests all fund profits exclusively in Ukraine, and preserves full national sovereignty over the country’s natural resources and infrastructure. Ukraine holds approximately 5% of the world’s mineral reserves and significant quantities of graphite, manganese, titanium, and lithium. However, many areas remain under Russian control, making extraction difficult. This agreement comes amid heightened tensions as Donald Trump seeks to end the conflict through territorial compromises, a proposal outright rejected by Volodymyr Zelenskyy, particularly regarding Crimea’s annexation by Moscow in 2014.