Ukraine and the US sign agreement on minerals, create Reconstruction Investment Fund!

The United States and Ukraine have signed an agreement that gives the US access to Ukraine's high-value rare earth minerals - a deal that Kiev hopes will ensure continued American support in the fight against Russia.

The agreement creates the U.S.-Ukraine Reconstruction Investment Fund, which the U.S. Treasury Department said will enable the two countries to “work together and invest together to ensure that our shared assets, talents, and capabilities accelerate Ukraine’s economic recovery.”

US Treasury Secretary Scott Bessent said in a press release that the agreement "is a clear signal to Russia that the Trump administration is committed to a peace process based on a free, sovereign, and prosperous Ukraine in the long term."

Bessent called the establishment of the Investment Fund a historic economic partnership, and attributed US President Donald Trump's encouragement to sign the agreement as part of his efforts to end the war.

"As the president has said, the United States is committed to helping mediate an end to this cruel and merciless war," Bessent added.

Trump has expressed dissatisfaction with the slow pace of the talks. On April 29, the US State Department made another attempt to push for progress, warning that the US could withdraw from the negotiations if there is no progress.

Ukraine's Economy Minister and Deputy Prime Minister Yulia Svyrydenko signed the agreement alongside Bessent, according to the Treasury Department. In a Facebook post, she said the agreement "can bring success to both our countries" and "will attract global investment to our country."

Svyrydenko stressed that the fund will be financed exclusively from revenues from new licenses – namely 50 percent from licenses for critical materials and oil and gas projects – which will enter the Ukrainian budget once the fund is established.

Beyond the financial aspect, Ukraine sees this agreement as key to securing further military assistance from the US.

"In addition to direct financial contributions, this could also bring new assistance – for example air defense systems for Ukraine," she wrote on the X platform (formerly Twitter).

She added that the agreement is in line with the Constitution of Ukraine, and does not change the course of Ukraine's European integration. It also emphasizes that all natural resources on the territory and territorial waters of Ukraine belong to Ukraine, and that only Kiev will decide what and where to extract.

The Ukrainian government approved the agreement on April 30, authorizing Svyrydenko to sign it in Washington. The agreement still needs to be ratified by the Ukrainian parliament to enter into force.

The US Treasury Department stated that it will work with the US Development Finance Corporation (DFC) and the Government of Ukraine to finalize the implementation of the program and advance the partnership.

Speaking earlier on April 30 on Ukrainian television, Ukrainian Prime Minister Denys Shmyhal called the agreement "really a good, equal and favorable agreement for joint investments in the development and reconstruction of Ukraine."

On the Telegram platform, Shmyhal explained that each side will have 50 percent voting rights in the Reconstruction Fund, and the fund's profits will be reinvested exclusively in Ukraine.

To address a key concern of Kiev, he stressed that Ukraine will not be forced to pay any "debt" for the billions of dollars in aid it has received from the US since the start of the Russian invasion in February 2022.

Trump stated in February that he wants access to Ukraine's rare minerals as a condition for continued US support, describing this as a way of compensating for the financial aid the US has given to Kiev.

But the talks stalled after a tense meeting in the Oval Office of the White House in Washington, which ended with verbal clashes between Ukrainian President Volodymyr Zelensky, Trump and Vice President JD Vance.

The US seeks access to more than 20 raw materials it considers strategically important, including deposits of titanium (used for aircraft wings and aerospace equipment) and uranium (used for nuclear power, medical devices and weapons). Ukraine also has reserves of lithium, graphite and manganese – key ingredients for electric car batteries.

Trump said the deal "in theory" means the US will get more from Ukraine than it has given.

"I wanted to be protected," he said in an interview with NewsNation, adding that he didn't want to seem "naive" without receiving compensation for the investment.

Earlier, at a cabinet meeting, Trump had stated that the American presence "will keep a lot of bad actors out of the country - or at least away from the area where the extraction will take place."/ rel