U.S. and Ukraine Sign Landmark Minerals Deal, Shaking Up Global Markets

In a pivotal development, the U.S. and Ukraine have signed a long-awaited minerals agreement, granting Washington preferential access to Kyiv’s abundant natural resources. In return, the U.S. will establish a reconstruction investment fund aimed at supporting Ukraine’s post-war economic recovery.

This highly anticipated deal—long a key objective for U.S. President Donald Trump—follows months of intense negotiations and comes more than three years after Russia launched its full-scale invasion of Ukraine.

A Strong Message to Russia

U.S. Treasury Secretary Scott Bessent emphasized that the economic partnership will accelerate Ukraine’s recovery and “help bring an end to this cruel and senseless war.”

“This agreement sends a clear message to Russia that the Trump Administration is firmly committed to a peace process focused on a free, sovereign, and prosperous Ukraine for the long term,” Bessent said in a statement.

Since taking office in January, President Trump has been a vocal advocate for a minerals deal with Ukraine, describing it as a form of “compensation” for the massive aid the U.S. has provided during the conflict. Speaking on NewsNation, Trump framed the deal as a way to safeguard American interests and avoid appearing “foolish” by giving without receiving.

Ukraine Retains Control Over Extraction

Ukrainian President Volodymyr Zelenskyy indicated that the framework for the deal had been in place since mid-April. Yulia Svyrydenko, Ukraine’s Minister of Economic Development and Trade, hailed the agreement as a signal to the global business community that long-term cooperation with Ukraine is a sound investment.

Importantly, Svyrydenko stressed that Ukraine will retain full authority over “where and what to extract.” The reconstruction fund will be created on a 50-50 basis, reflecting an equal partnership between Washington and Kyiv, with no single party holding majority control.

An Uncertain Path Ahead

Despite the optimism, concerns linger. Ed Verona, a senior fellow at the Atlantic Council’s Eurasia Center, warned that Ukraine had “little choice but to accept terms that risk reducing it to a quasi-colonial status.”

Verona raised critical questions: Will Ukraine’s legislature need to ratify the deal? Could amendments be introduced? And crucially, will investors be willing to commit to long-term projects in a volatile environment?

“The history of resource agreements offers plenty of reasons for skepticism,” Verona said, citing Russia’s reversal of production-sharing agreements in the 1990s, which forced Western partners to relinquish control of major projects.

Impact on Global Financial Markets

The U.S.-Ukraine minerals pact has sent ripples through global financial markets, as investors reevaluate opportunities and risks tied to critical minerals and rare earth elements. Experts suggest that this agreement could mark a turning point, reshaping both geopolitical dynamics and investment flows into Ukraine.

While uncertainties remain, the deal underscores the U.S.'s strategic push to secure global resource dominance and challenge rivals like China and Russia in the race for critical materials.

Source: CNBC

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