US and Ukraine sign a landmark minerals deal that promises to reshape their alliance while drawing fierce criticism from Russia, who claims the agreement signals Ukraine’s imminent demise.
At a Glance
- The Trump administration has signed a profit-sharing agreement with Ukraine for minerals and rare earths, establishing a 50-50 investment fund
- The deal provides economic incentives for continued US investment in Ukraine’s defense and reconstruction
- Ukraine will maintain control of its resources while gaining security benefits from increased US presence
- Russia has mocked the agreement, with former President Medvedev claiming Ukraine is “about to disappear”
- Following the agreement, Trump approved a $50 million military aid package for Ukraine
Strategic Partnership Forms Through Resource Sharing
The United States and Ukraine have formalized a significant minerals agreement to share profits and royalties from future sales of Ukrainian minerals and rare earth elements. The deal establishes a US-Ukraine Reconstruction Investment Fund with equal 50-50 ownership between the nations, designed to help repay an estimated $175 billion in aid provided to Ukraine during its conflict with Russia. Ukraine’s First Deputy Prime Minister, Yulia Svyrydenko, confirmed the signing, though the agreement still requires approval from Ukraine’s parliament to take effect.
The agreement ensures Ukraine maintains control over its natural resources and state-owned companies while creating a framework for “take-or-pay” contracts that guarantee revenue without imposing debt obligations. Initially viewed by critics as potentially unfavorable to Ukraine, the final terms proved more equitable than earlier proposals, with both nations receiving equal voting rights in the fund management. Ukraine holds approximately 5% of the world’s mineral resources and rare earths, though many sites currently remain in Russian-controlled territory.
Russia’s Provocative Response
Russian officials have responded with derision to the US-Ukraine minerals deal. Former Russian President Dmitry Medvedev issued particularly pointed remarks, suggesting the arrangement amounts to Ukraine selling off its resources to sustain American military support. The criticism appears aimed at undermining the agreement’s legitimacy and portraying Ukraine as surrendering its sovereignty. Despite these provocations, the Trump administration has framed the deal as a strategic counter to Russian aggression and a commitment to Ukraine’s long-term independence.
“Trump has finally pressured the Kiev regime to pay for US aid with mineral resources. Now, the country that is about to disappear will have to use its national wealth to pay for military supplies,” Dmitry Medvedev siad.
The Russian criticism comes as no surprise given the geopolitical implications of the deal. By establishing a formal economic partnership beyond military aid, the United States has signaled its intention to support Ukraine’s sovereignty for the long term. Immediately following the agreement’s signing, the Trump administration approved a $50 million military aid package for Ukraine, demonstrating concrete follow-through on security commitments that reinforces the economic collaboration established through the minerals agreement.
Benefits to American and Ukrainian Interests
The minerals deal represents a strategic win for both nations. For Ukraine, American investment brings not only economic benefits but enhanced security through increased US presence. The Trump administration has emphasized this security dimension, with the president himself noting that “The American presence will, I think, keep a lot of bad actors out of the country or certainly out of the area where we’re doing the digging.” This arrangement addresses Ukraine’s immediate security concerns while establishing economic foundations for reconstruction.
“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,” said Scott Bessent.
For the United States, the agreement secures access to strategic minerals and rare earth elements at a time when these resources have become increasingly important for advanced technology and defense systems.
The agreement specifies that the US will ensure adversarial countries do not benefit from Ukraine’s reconstruction, effectively limiting potential Chinese or Russian influence in Ukraine’s resource sector. The deal also maintains Ukraine’s pathway to EU membership, balancing Ukraine’s Western alignment with new economic ties to the United States.
