In a strategic shift away from traditional military aid, Ukraine and the United States have signed a minerals accord designed to unlock long-term investment and economic collaboration. This marks a significant pivot in U.S. engagement with Kyiv under President Donald Trump.
The deal, announced Wednesday after a two-month delay, secures U.S. access to Ukraine’s untapped mineral wealth, including rare earths, graphite, lithium, manganese, and titanium — vital for modern technology and clean energy transitions.
A Shift from Military to Economic Support
According to U.S. Treasury Secretary Scott Bessent, the minerals deal symbolizes a “new form of U.S. commitment” to Ukraine as the Trump administration looks to scale back security guarantees globally.
“This agreement signals clearly to Russia that the Trump administration is committed to a peace process centered on a free, sovereign and prosperous Ukraine,” Bessent said during the announcement in Washington.
Notably, the Treasury’s statement referenced Russia’s “full-scale invasion” of Ukraine — a rare move, as Trump’s administration has previously avoided language that places sole blame on Moscow.
Sovereignty and Investment Fund
Ukrainian Prime Minister Denys Shmygal praised the agreement, ensuring that Ukraine retains “full sovereignty” over its natural resources while opening doors for foreign direct investment.
“The fund’s profits will be reinvested exclusively in Ukraine. We are not repaying any debt for previous U.S. support,” Shmygal emphasized.
Under the agreement, a Reconstruction Investment Fund will be formed, with equal voting rights for both nations — a move seen as a win for Ukraine’s autonomy.
Trump’s Role and Controversial Demands
Trump initially demanded $500 billion worth of mineral wealth as compensation for military support provided under former President Joe Biden — a figure far exceeding the estimated $125 billion in total U.S. aid since 2022.
“The American presence will keep a lot of bad actors out of the areas where we’re doing the digging,” Trump said, highlighting his intention to deploy U.S. personnel primarily for mineral operations.
At a NewsNation town hall, Trump stated he told Ukrainian President Volodymyr Zelensky during a meeting at the Vatican that this deal was necessary, since “Russia is much bigger and much stronger.”
Domestic Backlash in the US
While Kyiv has cautiously embraced the agreement, U.S. lawmakers and analysts have criticized the deal as “extortion disguised as diplomacy.”
Congressman Gregory Meeks, ranking Democrat on the House Foreign Affairs Committee, said:
“Trump should focus on pressuring Putin, not fixating on Zelensky and squeezing Ukraine for resources.”HEED: Follow us on Instagram or any other social media platform and get the most reliable news directly in your favourite app!
Analysts also worry that Trump’s unwillingness to support Ukraine’s NATO ambitions and his suggestion that Kyiv concede territory could embolden Russia further.
Ukraine’s Strategic Resources
Ukraine holds an estimated 5% of the world’s mineral reserves, including around 20% of the global graphite supply, essential for EV batteries. However, many of these resources lie in conflict zones under Russian control, making exploitation risky and politically sensitive.
Despite the hurdles, Ukraine sees this agreement as a step toward economic resilience and post-war reconstruction, even as the broader geopolitical implications remain uncertain.
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