Ukraine, US Sign 'Historic' Minerals Deal
The United States and Ukraine have signed a controversial rare earths deal after weeks of wrangling.
The deal will allow the US to exploit Ukraine's natural resources, including aluminium, graphite, oil and natural gas.
The Trump administration has said Russia should see it as a signal that Washington is committed to supporting a free Ukraine.
The deal comes after The Telegraph reported that Donald Trump had dropped his demand to force Volodymyr Zelensky to hold elections that could unseat him as part of a peace deal.
Scott Bessent, US Treasury Secretary and one of the deal's main architects, said the agreement was "historic".
"As the president has said, the United States is committed to helping facilitate an end to this cruel and senseless war. This agreement sends a clear signal to Russia that the Trump administration is committed to a peace process that is centred on a free, sovereign and prosperous Ukraine for the long term," Mr Bessent said.The deal marks a victory for Ukraine after weeks of contentious negotiations.
Mr Mr. Trump said he expected the deal to be signed when Mr. Zelensky visited the White House in late February. The Ukrainian president left without signing after an extraordinary exchange with Mr. Trump in the Oval Office.
Mr. Trump has since condemned Russian attacks on civilian targets in Ukraine and signaled growing impatience with Vladimir Putin.
He and Mr. Zelensky spoke in person last weekend on the sidelines of Pope Francis’ funeral in Rome. Both said the talks were productive.
Yulia Svyrydenko, Ukraine’s first deputy prime minister, confirmed that the deal had been agreed, writing on X: “On behalf of the Ukrainian government, I signed the Agreement Establishing the United States–Ukraine Reconstruction Investment Fund.”
She added: “Together with the United States, we are creating a Fund that will attract global investment to our country.” In a post on X on Thursday morning, David Lammy, the British foreign secretary, said: “The UK welcomes the steps taken by the United States and Ukraine to sign an economic partnership.
“The UK’s support for Ukraine remains steadfast. With our 100-year partnership, we are deepening our economic and security ties for future generations of our nations.”
Mr. Trump has struggled to fulfill his pledge to end the conflict between Ukraine and Russia.
Earlier on Wednesday, Mr. Trump signaled that a deal was in the works, saying: “We’re making a deal where our money is safe, where we can start digging and doing what we have to do. It’s good for them, too, because you’ll have an American presence in the area.”
“And an American presence will keep a lot of the bad guys out of this country, or certainly out of the area where we’re digging.” The U.S. has stepped up its hunt for rare earth metals, which are essential components in everything from mobile phones to electric vehicles, as it seeks to reduce its reliance on Chinese supply chains.
The agreement establishes a “reconstruction investment fund” to be managed by three U.S. and three Ukrainian board members.
The fund will invest in rare earth extraction, oil and gas, with revenues split 50-50.
Ukrainian officials insist the deal is not designed to repay Washington for its support during the three-year war, but instead will be a forward-thinking vehicle for development.
Source: Bloomberg
