The United States and Ukraine have reached a controversial agreement allowing the extraction of rare earth minerals and other natural resources, following weeks of tense negotiations. The deal, described as “historic” by US Treasury Secretary Scott Bessent, includes access to aluminium, graphite, oil, and natural gas. While hailed as a victory for Ukraine, the agreement notably lacks assurances of future US security support. Mr Bessent emphasised that the deal signalled America’s long-term commitment to a free and sovereign Ukraine, intended as a clear message to Russia.
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The accord follows reports that Donald Trump has dropped demands for Ukrainian elections as a condition of peace negotiations. Initial talks were derailed by a dispute between Mr Trump and President Volodymyr Zelensky during a White House visit in February. However, the leaders later held constructive discussions during Pope Francis’s funeral in Rome. Ukraine’s First Vice-Prime Minister, Yulia Svyrydenko, confirmed the signing and announced the establishment of a US–Ukraine Reconstruction Investment Fund to draw global investment.
Though Mr Trump framed the deal as mutually beneficial, critics have voiced concern over the lack of security guarantees for Kyiv and the economic implications of allowing extensive foreign resource extraction. The agreement stipulates that profits from the mining operations will be equally shared between the two countries, with a board composed of three American and three Ukrainian members. Trump stated that the US presence at extraction sites would deter “bad actors” from interfering and insisted the deal provided better value than direct financial aid.
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The UK Foreign Secretary, David Lammy, welcomed the agreement, reaffirming Britain’s steadfast support for Ukraine. Meanwhile, US officials revealed that Ukraine has expressed a willingness to accept current Russian occupation of certain territories on a de facto basis. The Biden administration continues to ramp up efforts to reduce American reliance on Chinese supply chains, making deals like this one crucial to securing alternative sources of essential minerals.
