Ukraine and U.S. Sign Deal On Access to Rare Minerals

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

Treasury Secretary Scott Bessent hailed the deal as a step toward a negotiated end to the conflict in Ukraine and a beginning of the country's reconstruction. In tightly controlled negotiations, the Trump administration dropped its insistence that the agreement allow Washington to recoup billions of dollars of past military aid.

"As the President has said, the United States is committed to helping facilitate the end of this cruel and senseless conflict," Bessent said in a statement. "This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term."

The agreement marks an improvement for relations between Kyiv and Washington, which have soured in recent months, not least over the deal for Ukraine's minerals. A one-on-one meeting of Trump and Ukrainian President Volodymyr Zelensky at the Vatican ahead of Pope Francis' funeral last weekend appears to have eased tensions between the leaders.

The deal is also envisioned by the White House as a kind of security guarantee for Ukraine in the event a cease-fire is reached with Russia. Trump officials argue that a U.S. business presence in Ukraine would deter Moscow from attacking the country again.

Central to the agreement is an investment fund that both Ukraine and the U.S. will contribute to and oversee equally.

The fund will invest into Ukraine for a period of 10 years, focusing on rebuilding Ukraine and renewing the country's economy. Ukraine will retain control over its minerals, paying into the fund with new licenses it issues. The deal is tax- and tariff-free for both countries, Ukrainian Prime Minister Denys Shmyhal said.

"This is a good achievement," Shmyhal said. "We understand how we will use this instrument in the future in working with our partner, with the United States of America."

Shmyhal traveled to Washington last week for negotiations around the deal.

The fund will invest in Ukraine for 10 years, focusing on rebuilding Ukraine. The deal still needs to be ratified by the Ukrainian Parliament, Shmyhal said.

The latest draft follows months of tense negotiations between Ukraine and the U.S.

Zelensky initially proposed a mineral deal in the summer of 2024, before Trump's election, in a bid to woo Republican support. Ukraine has reserves of lithium, titanium and other rare-earth metals essential for everything from cellphones to the defense industry.

Kyiv saw the initial agreement presented by Bessent during a trip to Ukraine as a starting point for negotiations, while Washington hoped for the document to be signed on the spot.

Yet even as diplomatic relations between Kyiv and Washington deteriorated, hope for reviving the deal endured.

When the Trump administration sent another, different, proposal in March, it spelled out sweeping demands that Ukraine couldn't accept. That version of the agreement put repayment of debt back on the table and asked for broad U.S. control over the country's economy.

Rather than balk at the March proposal, Ukrainians continued negotiating. Weeks later, a memorandum of understanding was signed by Bessent and Ukrainian Deputy Prime Minister Yulia Svyrydenko.

The memorandum spelled out a path toward a more comprehensive agreement. The latest draft explicitly respects Ukraine's international obligations, Shmyhal said.

Last week, Trump scolded Zelensky for not having signed the expanded mineral agreement in a social media post. His tone appeared to soften after the meeting with Zelensky, which he called "a moment of solace."" [1]

1.  Ukraine and U.S. Sign Deal On Access to Rare Minerals. Lytvynenko, Jane; Cullison, Alan.  Wall Street Journal, Eastern edition; New York, N.Y.. 01 May 2025: A1.