 |
This minerals agreement, which faced intense negotiations and nearly collapsed just hours before its signing, will create a US-Ukraine Reconstruction Investment Fund aimed at repaying an estimated $175 billion in aid provided to Ukraine since the onset of the war.
Scott Bessent, the US Treasury Secretary, emphasized that this agreement demonstrates the Trump administration's commitment to a long-term peace process that supports a free and prosperous Ukraine.
Ukrainian officials, including First Deputy Prime Minister Yulia Svyrydenko, confirmed the signing of the agreement, highlighting its potential to attract global investment while ensuring Ukraine retains control over its natural resources.
Prime Minister Denys Shmyhal added that the fund will be equally divided between the US and Ukraine, granting both parties equal voting rights.
Ukraine will maintain complete control over its mineral, infrastructure, and natural resources, focusing solely on new investments, which alleviates concerns about incurring debt obligations, a significant issue for Kyiv.
The agreement aims to secure revenue through contracts based on a "take-or-pay" model, as noted by Shmyhal, who characterized the deal as a fair and mutually beneficial international agreement for joint investments in Ukraine's development and recovery.
Critics have argued that the White House is attempting to exploit Ukraine by tying future aid to the relinquishment of resource revenues, although the final terms are considerably less burdensome than the initial proposals from Bessent, which sought full control of the fund's revenues by the U.S.
During a cabinet meeting, Trump said that a U.S. presence in Ukraine would deter negative influences, and he expressed to President Zelenskyy that signing the deal would be advantageous against Russia's larger military strength. When asked if the minerals deal might restrict Putin's actions, Trump said that ' it could have that effect.'
UK Foreign Secretary David Lammy also expressed support for the agreement, reaffirming the UK's commitment to Ukraine.
The outcome of the negotiations between the US and Ukraine remained uncertain until the very end, as reports indicated that Washington was pressuring Ukraine to finalize additional agreements, particularly regarding the investment fund's structure, or risk losing support.
This pressure came after months of tense discussions, during which the US frequently issued last-minute demands while withholding aid crucial for Ukraine's defense against Russia.
Although Ukraine's prime minister had expressed optimism about signing a minerals deal with the US within 24 hours, it became clear that Washington was requiring Kyiv to agree to a total of three separate agreements.