US, Ukraine seal deal on energy and minerals

The United States and Ukraine have reached a major agreement to jointly develop Ukraine’s energy and mineral resources, marking the end of prolonged negotiations and paving the way for further US military support.

The deal also includes the creation of a joint investment fund to boost Ukraine’s economic recovery from the ongoing war with Russia.

According to a statement issued by the US Treasury on Wednesday, the newly established US-Ukraine Reconstruction Investment Fund reflects the deep financial and material support that the US has extended to Ukraine since Russia launched its invasion in February 2022.

The fund is intended to draw in more global investment and help unlock Ukraine’s economic potential.

"This deal will help unlock Ukraine's growth assets," said US Treasury Secretary Scott Bessent in a video message, adding that both countries are committed to peace and long-term prosperity.

A major part of the agreement involves the exploration and development of Ukraine’s vast reserves of critical minerals, including graphite, titanium, and lithium.

These materials are vital for renewable energy, military technology, and industrial production.

With China currently supplying 90 percent of the world’s rare-earth elements, the US is eager to diversify its sources amid a continuing trade standoff with Beijing.

Ukraine’s Deputy Prime Minister Yulia Svyrydenko, who travelled to Washington to sign the deal, announced on X that the fund would play a key role in bringing foreign investment into Ukraine.

She noted that the agreement includes joint projects in oil, gas, and minerals, but stressed that the resources will remain under Ukrainian ownership.

"The partnership is equal, on a 50:50 basis," Svyrydenko stated, adding that it still requires approval from Ukraine’s lawmakers.

The US, she said, will also provide new military support under the agreement, including air defence systems.

The wording of the agreement highlights stronger than usual support for Ukraine from the Trump administration.

It refers directly to "Russia's full-scale invasion" and asserts that no individual or state that supported Russia’s war machine will benefit from Ukraine’s reconstruction.

While the Kremlin has yet to respond, the agreement comes at a delicate time as talks continue between Washington and Moscow over a possible ceasefire.

The pact follows a recent meeting between US President Donald Trump and Ukrainian President Volodymyr Zelensky in Vatican City, which took place during the funeral of Pope Francis.

During a phone interview with NewsNation on Wednesday evening, Trump said he urged Zelensky to finalise the deal during their meeting in Vatican City.

"I was telling him that it's a very good thing if we can produce a deal that you sign it," he said.

"Because Russia is much bigger and much stronger. Russia is just chugging forward."

Trump made it clear that the agreement is connected to the broader US security commitment to Kyiv. He described Ukraine’s rare-earth resources as a key asset and said the deal allows the US to recover the value of its previous support.

"So I went to them and said, 'Look, we got to get rare earth.' They have great rare earth, meaning certain minerals, materials," Trump said.

"They have things that a lot of places don't have. It's a big asset that they have."

Although the final agreement appears balanced, it is far less than what Trump originally demanded.

He had insisted that Ukraine repay all US military aid delivered since the start of the war.

However, Ukraine secured some concessions, allowing it to retain ownership of its resources while benefiting from new military aid and investment.

The negotiations, which were initially scheduled to conclude in February, were delayed after tensions rose between the two sides.

US officials accused Kyiv of attempting to reopen key sections of the draft that had already been agreed upon.

One US source familiar with the discussions pointed to disputes over fund governance, transparency, and the need to trace every dollar spent.

"Ukraine was trying to change some of the terms we thought were final," the source as reported by the BBC.

The technical parts of the deal were signed last week by representatives of both governments.

A heated argument reportedly broke out at the White House earlier this year when Trump accused Zelensky of risking a wider conflict by delaying the agreement.

Despite the setbacks, both parties have now agreed to move forward.