US and Ukraine sign critical minerals deal

The US has signed a much-anticipated natural resources deal with Ukraine, which the treasury department said would help with its post-war reconstruction efforts.

President Donald Trump repeatedly pushed for the agreement as a prerequisite to offering any future security guarantees to Kyiv, as Ukraine fights against Russia’s invasion.

In a statement, the US said the agreement “signals to Russia” that the Trump administration is “committed to a peace process centred on a free, sovereign, and prosperous” Ukraine.

The deal will see the the creation of a joint Ukrainian-US investment fund to search for minerals, and set outs how revenues would be split.

According to the statement from the US Treasury on Wednesday afternoon, the newly created US-Ukraine Reconstruction Investment Fund recognises the “significant financial and material support” the US has given Ukraine since Russia invaded in February 2022.

“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,” Treasury Secretary Scott Bessent said in the statement.

“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,” he added.

He said in a video statement that the deal would help “unlock Ukraine’s growth assets”.

Ukraine’s Deputy Prime Minister Yulia Svyrydenko flew to Washington on Wednesday after an apparent breakthrough in negotiations.

In a post on X, Svyrydenko – standing outside the treasury building in Washington – said that the fund created by the agreement would “attract global investment into our country.”

The announcement comes after a delay, which US authorities said was a result of Ukraine attempting to negotiate already-agreed-upon aspects of the deal.

“We are ready to sign this afternoon if they are,” Bessent said earlier on Wednesday, adding that Ukraine “decided to make last-minute changes” to the agreement.

On Wednesday afternoon, a US source familiar with the talks criticised Ukraine for seeking to reopen some terms that had apparently been finalised over the weekend.

Both US and Ukrainian teams worked through the night on Friday into Saturday to agree the documents, as well as into the early morning on Wednesday, the source told the BBC.

They added that the sticking points had included governance of the fund, the transparency mechanism, and steps to ensure that all funds would be fully traceable.

“Nothing’s been removed,” Bessent said earlier when asked about any changes to the deal. “It’s the same agreement that we agreed to on the weekend. No changes on our side.”

Technical documents were signed last week by representatives of both countries.

Ukraine is believed to have vast reserves of critical rare minerals like graphite, titanium and lithium beneath its soil. They are highly sought after because of their use in renewable energy, military applications and industrial infrastructure.

The Trump administration’s push for access to another country’s mineral wealth comes amid a growing trade war with China, where 90% of the world’s current rare-earth stocks are sourced.

The draft of the deal appeared to give the US sweeping access to Ukrainian industries beyond minerals.

While it did not specify security support that Washington would be willing to provide in return, it stated that the deal was “a tangible demonstration of the United States of America’s support for Ukraine’s security”.

The agreement comes days after Trump and Ukrainian President Volodymyr Zelensky held a face-to-face meeting on the sidelines of Pope Francis’ funeral, and as talks between Moscow and Washington over a possible ceasefire in Ukraine continue.

The latest Trump-Zelensky talks appeared to be far more amicable than their meeting at the White House in February, and led to a softening in tone from the US president towards his Ukrainian counterpart in the days that followed, as well as an increased level of criticism of Russia’s attacks.

Speaking on Wednesday, Trump said: “As you know, we’re looking for rare earth [minerals] all the time.

“They have a lot, and we made a deal, so we can start digging and doing what we have to do. It’s also good for them.”

The initial agreement was due to be signed in February, but fell apart following the heated exchange between the two leaders, when Trump accused Zelensky of “gambling with World War Three”.