For weeks, the USA and Ukraine have struggled for a common economic agreement – now there is an agreement. The agreement ensures the United States access to Ukrainian mineral resources. However, Ukraine keeps control of resources.
The USA and Ukraine have signed an agreement to finance the state's reconstruction and the reduction of Ukrainian raw materials. “I am pleased to be able to announce the signing of this historic economic agreement today,” said US Finance Minister Scott Bessent in a video message.
According to the Ukrainian Minister of Economic Affairs Julia Swyrydenko, projects to reduce raw materials such as minerals, oil and gas are to be promoted. However, Ukraine keeps full control over its raw material occurrence.
“Together with the United States, we create the fund that will bring global investments to our country,” said Swyrjdenko on X. The agreement will enable both countries to increase their economic potential through equal cooperation and investments. “The United States will participate in the fund. In addition to the direct financial contributions, you could also provide new help – for example, air defense systems for Ukraine.”
Privileged access for the USA
The United States is given privileged access to Ukrainian resources – including metals of rare earths that are important for high technology. However, Washington does not automatically transmit a share of the raw material wealth of Ukraine or its gas infrastructure.
The Ukrainian Prime Minister Denys Schmyhal was satisfied with the result. Ukraine will deposit 50 percent of its revenue from license and sales proceeds for the raw materials in the funds, said Schmyhal in Kiev: “Ukraine keeps control of its resources. This means that sovereignty, infrastructure, raw materials are not part or a prerequisite for the fund or the agreement.”
“A really equal Agreement “
It is “a really equal, good international agreement on joint investments in the development and reconstruction of Ukraine,” said Schmyhal. Kiev does not commit to any debts for military and financial support that Washington has had in Ukraine in February 2022 since the beginning of the Russian war of aggression. “The profits from the fund are only invested in Ukraine again,” said Schmyhal.
The US Ministry of Finance announced that the economic partnership enables the United States and Ukraine to “work together and invest together to ensure that our common assets, talents and skills can accelerate the economic recovery of Ukraine”.
Bessent speaks of “comprehensive invasion” of Russia
The agreement is also a clear signal to the Russian leadership that the government of US President Donald Trump campaigns for a peace process in the long term, at the center of which “a free, sovereign and prospering Ukraine is”.
States and persons “who financed or supported the Russian war machine, it will not be allowed to benefit from the reconstruction of Ukraine,” he emphasized. He also spoke of a “comprehensive invasion” of Russia in Ukraine – a wording that the government in Washington has previously avoided.
Uncertainty until the last minute
Negotiations had been made for weeks. Shortly before the signing, Trump had reaffirmed that the United States would have to get something to support Ukraine. Therefore, one wants an agreement on the rich occurrence of rare earths in Ukraine. Up to the last minute there had been uncertainty whether an agreement would occur. According to Bessent, Ukraine had presented change requests at short notice.
An agreement should have already been signed in Washington at the end of February during a visit to the Ukrainian President Wolodymyr Selenskyj. However, there was a scandal as US President Trump and his Vice President JD Vance accused the Ukrainian head of state in front of ongoing cameras disrespect and a lack of gratitude for the US military aid.
After all, both countries were able to agree on a new attempt. In mid -April, Kyiv and Washington signed a declaration of intent to conclude the raw material agreement. Before entry into force, the agreement must still be ratified by the Ukrainian parliament.
