After months of tensions, disputes, and clashes both privately and publicly, the United States and Ukraine reached an agreement on Wednesday that will allow Washington to have a significant financial stake in the mining production of the European country and privileged access to its coveted rare earth minerals. Pressured at the highest level (more like blackmailed, according to European governments), Kiev has accepted without achieving the security guarantees it desired in exchange for yielding its resources, having to settle for the idea, advocated at all times by the White House, that a business presence in the country will be the best deterrent against Russia. According to Kiev, the pact is not a "sale" of the country in exchange for the aid received in recent years but rather a joint investment position for the future.
"On April 30, the United States and Ukraine signed an agreement to establish the United States-Ukraine Reconstruction Investment Fund. In recognition of the significant financial and material support that the American people have provided to Ukraine's defense since Russia's large-scale invasion, this economic alliance positions both countries to work together and invest jointly to ensure that our mutual resources, talents, and capabilities can accelerate Ukraine's economic recovery," the Treasury Department said in a statement released in the afternoon.
"Thanks to President Trump's tireless efforts to achieve lasting peace, I am pleased to announce the signing today of the historic economic alliance agreement between the United States and Ukraine establishing the United States-Ukraine Reconstruction Investment Fund," celebrated Treasury Secretary Scott Bessent. "As the president has said, the United States is committed to facilitating the end of this cruel and senseless war. This agreement clearly indicates to Russia that the Trump Administration is committed to a peace process focused on a free, sovereign, and prosperous Ukraine in the long term. President Trump conceived this alliance between the American and Ukrainian peoples to demonstrate the commitment of both parties to lasting peace and prosperity in Ukraine. And, to be clear, no state or individual that financed or supplied supplies to the Russian war machinery will benefit from the reconstruction of Ukraine," added Bessent, the one in charge of clarifying the leader's orders.
This same week, after meeting with Zelenski in the Vatican, Trump increased pressure with a message on his social media. "Under the leadership of Volodimir Zelenski, Ukraine has not signed the final documents of the very important Rare Earth Agreement with the United States. It is at least three weeks behind. Let's hope it is signed immediately. Success seems to be in the future!" he warned.
When writing this, Trump knew the agreement was in its final stages. This time for real. Previously, in February, Washington tried to impose draconian conditions. Basically, it demanded almost exclusive and uncompensated access to Ukraine's minerals and rare earths, whose quantity and value are actually a mystery, in exchange for the aid already provided in the past, based on the false premise that the US was providing free financing to Ukrainians, while Europeans would be benefiting since, according to the White House's version, they had only provided loans that must be repaid with interest.
Zelenski did not accept in Kiev before Bessent, nor did he a few days later in Munich when, on the sidelines of the Security Conference, he was presented with an equally or even tougher paper. The Ukrainian leader traveled to Washington a few weeks ago hoping to secure more explicit security guarantees, a commitment from the US to send troops, or at least provide air protection once peace is signed with Russia, to try to ensure that there will not be another invasion in a few months or years. But Trump not only refused but also attacked him alongside his vice president in front of the cameras, with billions of viewers witnessing an unprecedented spectacle in the world of diplomacy. And then he withdrew military aid and access to intelligence and satellites.
"Under the leadership of President Donald J. Trump, the Treasury Department and the U.S. International Development Finance Corporation (DFC) will work together with the Government of Ukraine to finalize the governance of the program and drive this important alliance. Both the United States and the Government of Ukraine are looking to quickly launch this historic economic alliance for the Ukrainian and American peoples," the American government said in its statement on the pact, but without including any technical details.
The agreement will provide the United States privileged access to new investment projects to develop Ukraine's natural resources, including aluminum, graphite, oil, and natural gas. The United States seeks exclusive or priority access to over 20 raw materials considered strategically crucial for its interests, as well as oil and natural gas. Among them are Ukrainian titanium deposits, used for manufacturing aircraft wings and other aerospace products, and uranium, used for nuclear energy, medical equipment, and weapons. Ukraine also possesses lithium, graphite, and manganese, used in electric vehicle batteries.
Ukraine's Minister of Economy and Deputy Prime Minister, Yulia Svyrydenko, traveled to Washington on Wednesday to help finalize the agreement, as announced by Prime Minister Denys Shmyhal during an appearance on Ukrainian television. While the main part of the agreement had been reached, there were still obstacles to overcome.
The Europeans wanted to refine two technical documents further, but the US did not, explaining that it would reopen what had already been agreed upon. Bessent himself, on Wednesday, said during a Trump Cabinet meeting that on Tuesday night "Kiev had delayed the signing because they wanted last-minute changes," but assuming it would be concluded hours later. As it finally happened.
According to Prime Minister Shmyhal, the idea is to create an equal fund between both countries for a period of 10 years. Financial contributions to a joint fund would be made in cash, and only new US military aid would be counted for the US part, not the one provided since 2022 or even earlier, as Trump requested. It is not yet clear what possible consequences Ukraine's possible entry into the European Union would have, a key clause for Kiev. "It is a strategic agreement for the establishment of a joint investment fund, a truly equitable and beneficial international agreement on joint investments in the development and recovery of Ukraine between the governments of the United States and Ukraine," added the prime minister. Perhaps more of a wish than a reality on the ground.