The United States will share future revenue from Ukraine’s mineral reserves under a newly announced agreement that establishes a joint investment fund between the two nations.
This pact follows months of intense negotiations, with the US seeking to position itself as a mediator to end the three-year conflict between Ukraine and Russia. The deal aims to give the US administration a vested interest in Ukraine’s future, while addressing concerns about open-ended support for Kyiv.
US Treasury Secretary Scott Bessent emphasized that the agreement sends a strong message to Russia that the US is committed to a peace process centered on a free, sovereign, and prosperous Ukraine in the long term. He described the partnership as a reflection of mutual commitment to lasting peace and economic growth.
Bessent also clarified that no state or individual who has funded or supplied Russia’s military efforts will be allowed to benefit from Ukraine’s reconstruction.
Details about the agreement were initially sparse, leaving uncertainty about its implications for future US military aid to Ukraine. Sources familiar with the talks indicated that the final deal does not include explicit guarantees regarding continued US security assistance.
Despite these limitations, supporters of Ukraine hope the agreement will encourage the US to view Ukraine as more than just a financial burden or a geopolitical obstacle in relations with Russia.
The idea of granting the US a share in Ukraine’s mineral wealth was first proposed by Ukrainian President Volodymyr Zelenski during a meeting with then-President Trump at Trump Tower last September.
Although the initial announcement did not explicitly mention Ukrainian minerals, a Treasury spokesperson confirmed that the agreement covers a natural resources pact that had been under negotiation.
The US International Development Finance Corporation will collaborate with Ukraine to finalize the terms of the investment fund, according to the Treasury Department.
Ukrainian Prime Minister Denys Shmyhal shared via Telegram that both countries would hold equal voting rights within the fund, with Ukraine retaining full control over its land, infrastructure, and natural resources. He added that all profits generated by the fund would be reinvested in Ukraine.
“This agreement will help us attract significant resources for reconstruction, stimulate economic growth, and access the latest technologies from our US partners and strategic investors,” Shmyhal stated.
Some US allies expressed cautious optimism about the deal, viewing it as a meaningful improvement over earlier proposals and a sign that Kyiv can engage constructively with the US administration.
William Taylor, former US ambassador to Ukraine, remarked that the mineral agreement was considerably better than initial versions, with the US incorporating many Ukrainian recommendations—a positive indication for ceasefire talks.
A former US official familiar with the discussions said that the Trump administration rejected Ukraine’s efforts to secure explicit security guarantees, such as continued military aid. However, the official noted the agreement serves to build goodwill with the US president by creating an economic stake in Ukraine’s stability and survival.
Negotiations had stalled following a contentious Oval Office meeting in late February between Presidents Trump and Zelenski. A major sticking point was whether US aid provided since the large-scale Russian invasion in February 2022 would be classified as repayable debt.
Trump insisted Ukraine should repay the funds, while Ukrainian officials warned that doing so would burden the country’s economy for generations.
Ukraine initially proposed attracting US investment in its mining sector as an incentive for US backing of a peace deal that would include security guarantees preventing future Russian aggression.
From the outset, the talks were fraught, with Trump demanding Ukraine seek security assurances from Europe rather than the US, and critics labeling early drafts as exploitative.
A planned signing in the White House in February unraveled when Trump and Vice President JD Vance publicly rebuked Zelenski for insufficient gratitude, abruptly ending the meeting and suspending US military aid and intelligence sharing temporarily.
Zelenski described the Oval Office encounter as “regrettable” in a proposal submitted the following day.
Some observers have viewed the deal as the US leveraging Ukraine’s dependence on American military and financial support to secure control over valuable natural resources, without firm assurances in return. US negotiators argue that the investment will deter future aggression.
A memorandum of understanding signed on April 16 outlined plans for a postwar reconstruction investment fund. Beyond opening opportunities for American companies in mining, oil, and natural gas, the fund could channel reconstruction contracts to US firms—a potentially lucrative enterprise if a ceasefire is achieved.
Zelenski has emphasized that the minerals agreement is a stepping stone towards broader discussions on US military support and conditions for a possible ceasefire with Russia.
“We view this agreement as a step toward stronger security and solid guarantees, and I sincerely hope it will be effective,” Zelenski said in March via social media.
Ukraine claims reserves of over 20 critical minerals valued at trillions of dollars by consultants, though extraction may be challenging due to outdated Soviet-era maps and limited exploration.
Currently, Ukraine earns about $1 billion annually in natural resource royalties, far below the hundreds of billions President Trump suggested the US might gain from the agreement.
The revenue-sharing pact arrives amid a precarious moment for Ukraine, with Russian forces gaining ground and the US administration warming relations with Russia.
A US-proposed ceasefire—at least based on public terms—favors Russia by requiring Kyiv to abandon NATO ambitions, offering vague security assurances, and effectively recognizing Crimea as Russian territory. Ukraine has rejected this proposal.
The Trump administration has repeatedly threatened to abandon peace talks. Recently, Trump demanded a ceasefire agreement within two weeks but later indicated some flexibility on timing.
Trump has also insisted on finalizing the minerals agreement, accusing Ukraine of delays and urging immediate signing.
On Wednesday, some uncertainty surrounded the deal as Ukrainian officials arrived in Washington seeking last-minute adjustments.
During a White House cabinet meeting, Bessent expressed optimism that the agreement, reportedly reached in principle over the weekend, would be signed soon.
“The Ukrainians introduced some last-minute changes last night,” Bessent said. “We’re confident they will reconsider, and we are ready to sign this afternoon if they do.”
