US and Ukraine Sign Strategic Critical Minerals Deal, Establish Joint Investment Fund

Washington, D.C., May 1, 2025 The United States and Ukraine have signed a landmark economic partnership agreement granting Washington access to Ukraine’s critical rare earth minerals in exchange for the creation of a joint investment fund aimed at supporting Ukraine’s recovery and development.

The agreement, announced Wednesday by the U.S. Treasury Department, follows months of intense and often contentious negotiations that delayed U.S. aid and raised tensions between the two allies. It was ultimately signed by Ukraine’s Economy Minister Yulia Svyrydenko during her visit to Washington.

Deal Strengthens Economic and Strategic Ties

The agreement, described as a “strategic investment partnership”, allows the U.S. and Ukraine to jointly manage a fund for investments in Ukraine, with equal contributions and shared oversight. It grants U.S. access to critical minerals vital for clean energy technologies, electronics, and defense systems, while reaffirming Ukraine’s ownership of all resources within its territory and waters.

“All resources on our territory and in territorial waters belong to Ukraine,” said Svyrydenko on social media. “It is the Ukrainian state that determines what and where to extract.”

Treasury Secretary Scott Bessent underscored the deal’s geopolitical weight, calling it a clear message to Russia. “This agreement signals clearly that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine,” he said.

Trump Administration Frames Agreement as “Payback”

Former President Donald Trump, now back in the White House, has positioned the agreement as part of Ukraine’s repayment for extensive U.S. aid since the beginning of Russia’s invasion in February 2022. A White House official noted that while previous aid will not be counted, new military support may qualify as a contribution to the joint fund.

A key point of contention during earlier negotiations had been Ukraine’s demand for security guarantees, which Trump initially rejected. Ukrainian officials later accepted the deal, reportedly seeing U.S. economic involvement as a de facto security commitment.

Strategic Importance of Ukraine’s Mineral Reserves

Ukraine holds 22 of the 50 critical materials identified by the U.S. Geological Survey, including rare earths essential for high-tech manufacturing and defense systems. As Western nations seek to reduce dependency on China for these resources, Ukraine has emerged as a critical partner.

The deal follows a similar memorandum of understanding signed with the European Union in 2021, and expands on an initiative started under the Biden administration to encourage American investment in Ukraine’s mining sector.

Outlook and Impact

Ukrainian Prime Minister Denys Shmyhal described the agreement as a “mutually beneficial” deal that balances strategic U.S. interests with Ukraine’s sovereignty. “It is truly an equal and beneficial international agreement on joint investments in the development and recovery of Ukraine,” he said.

With the agreement now formalized, Ukraine is expected to offer investment incentives and transparent environmental practices, while the U.S. will promote Ukrainian mining projects to American businesses.

The joint investment fund is anticipated to play a key role in Ukraine’s long-term reconstruction and geopolitical integration with Western economies, while giving the U.S. a strategic foothold in the global critical minerals supply chain.