The US and Ukraine sign economic minerals deal

The Trump administration reached a deal Wednesday with Ukraine giving the U.S. access to its mineral wealth, overcoming last-minute haggling that had held up an agreement President Trump had sought to compensate the U.S. for helping Ukraine fight off Russia’s invasion.

This is the culmination of long rounds of bilateral discussion that included a sit down between President Trump and Ukrainian President Zelenskyy when both men were at Pope Francis’ funeral.

Scott Bessent, the Treasury Secretary, hailed the deal as a step toward a negotiated end to the war, and the beginning of Ukraine’s reconstruction. The two countries signed the accord in Washington after months of sometimes fraught negotiations, with uncertainty persisting until the last moment with word of an eleventh-hour snag.

The accord establishes a joint investment fund for Ukraine’s reconstruction as Trump tries to secure a peace settlement in Russia’s three-year-old war in Ukraine. The agreement is central to Kyiv’s efforts to mend ties with Trump and the White House, which frayed after he took office in January.

Ukrainian officials have hoped that the deal would ensure continued U.S. support for Ukraine’s defence against Russia. Ukrainian First Deputy Prime Minister Yulia Svyrydenko said: “In addition to direct financial contributions, it may also provide NEW assistance – for example air defense systems for Ukraine.”

The U.S. has been Ukraine’s single largest military donor since Russia’s 2022 invasion with aid of more than 64 billion euros ($72 billion), according to the Kiel Institute in Germany.

Before the signing, Trump repeated on Wednesday that the U.S. should get something for its aid to Kyiv, thus the effort to secure a deal for Ukraine’s plentiful deposits of rare earth minerals.

Unlike an earlier draft of the agreement, the deal would not conflict with Ukraine’s path toward European Union membership, a key provision for Kyiv, and according to Svyrydenko, the Ukrainian government will determine what minerals will be extracted and where.

The question now is whether this deal will lead to a lasting peace, or will simply give Russia time to rearm, and invade Ukraine again in the future.