Ukraine signs deal to give US access to rare minerals, as Donald Trump admin says it is 'committed to a peace process': Bessent

Sky News AU

01-05-2025

Ukraine has signed a deal with the United States, giving the U.S. access to Ukraine's rare minerals as it continues to work with the Trump administration in an effort to end its three-year war with Russia.
Ukrainian Economy Minister and Deputy Prime Minister Yulia Svyrydenko flew to Washington, D.C., on Wednesday to help finalize the deal.
"On behalf of the Government of Ukraine, I signed the Agreement on the Establishment of a United States–Ukraine Reconstruction Investment Fund. Together with the United States, we are creating the Fund that will attract global investment into our country," she wrote on X.
Upon taking office, President Donald Trump said he wanted Ukraine's rare earth materials as a condition for continued U.S. support in the war.
He described it as reimbursement for the billions of dollars of U.S. military assistance given to Ukraine.
Discussions about a possible deal stalled following a combative meeting between Trump administration officials and Ukrainian President Volodymyr Zelensky in the Oval Office.
The agreement will establish the United States-Ukraine Reconstruction Investment Fund to help accelerate Ukraine's economic recovery, Treasury Secretary Scott Bessent said.
"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" Bessent said in a statement.
"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."
The U.S. is seeking access to more than 20 raw materials deemed strategically critical to its interests, including some non-minerals such as oil and natural gas. Among them are Ukraine's deposits of titanium, which is used for making aircraft wings and other aerospace manufacturing, and uranium, which is used for nuclear power, medical equipment and weapons.
Ukraine also has lithium, graphite and manganese, which are used in electric vehicle batteries.
The deal will establish an equal partnership between the two countries and last for 10 years. Financial contributions to a joint fund would be made in cash, and only new U.S. military aid would count toward the American share.
Neither party will have a majority vote, reflecting an equal partnership between Ukraine and the United States, Svyrydenko said. The fund is supported by the U.S. government through the U.S. International Development Finance Corporation.
Unlike an earlier draft of the agreement, the deal would not conflict with Ukraine's path toward European Union membership — a key provision for Kyiv.
Under the terms of the deal, the Ukrainian government will determine where and what minerals will be extracted, Svyrydenko said.
The Associated Press contributed to this report
Originally published as Ukraine signs major deal to give US access to rare minerals, as Donald Trump admin says it is 'committed to a peace process': Bessent