US and Ukraine sign 'historic' minerals and rare earths deal, Kyiv calls it 'good, equal and beneficial'

The US and Ukraine signed a "historic" economic partnership deal, agreeing to split profits from the sale of Ukrainian minerals and rare earths in the future. President Donald Trump had hinted that the deal would provide financial motivation for America to continue to invest in Kyiv's defence and its reconstruction after a future peace deal with Russia. The deal has been signed after weeks of intense negotiation to allow Washington access to Kyiv's rare minerals deposits, both countries said.

Notably, Ukraine said it has secured key interests after protracted negotiations, including full sovereignty over its own rare earths. In Kyiv, Prime Minister Denys Shmyhal said on national television that the agreement was "good, equal and beneficial".

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Trump had initially demanded rights to Ukraine's mineral wealth as compensation for the billions of dollars in US weapons sent under former president Joe Biden after Russia invaded just over three years ago.

Ukraine hesitated, but now it has accepted the minerals accord as a way to secure long-term investment by the US as Trump tries to scale back security commitments around the world.

The United States-Ukraine Reconstruction Investment Fund will be established by the minerals deal. According to the Trump administration, the fund will assist in repaying an estimated $175 billion in aid given to Ukraine since the start of the conflict.

"I am glad to announce the signing of today's historic economic partnership agreement," Treasury Secretary Scott Bessent said in a video message describing the deal as "historic."

The Investment Fund for the Reconstruction of Ukraine will support new projects pertaining to those resources "as well as in related infrastructure or processing," the minister said on Facebook.

"This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centred on a free, sovereign, and prosperous Ukraine over the long term," Bessent said, further adding that It’s time for this cruel and senseless war to end. The killing must stop and both the United States and the government of Ukraine look forward to quickly operationalising this historic economic partnership.
"President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides’ commitment to lasting peace and prosperity in Ukraine. And to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine," Bessent added.

Meanwhile, Ukrainian Economy Minister Yulia Svyrydenko said on Wednesday that a much-anticipated investment deal with the US would finance mineral and oil and gas projects.

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What are critical minerals?

Critical minerals are essential minerals and metals crucial for various industries. Lithium, cobalt, nickel and rare earth elements (REEs) are required for batteries, solar panels and wind turbines. Meanwhile, rare earth elements, indium and germanium are needed for electronics, semiconductors and telecommunications. Titanium, tungsten and rare earth elements are for aircraft, missiles and military equipment.