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Home»WORLD NEWS»US and Ukraine Sign Landmark Deal on Natural Resources
WORLD NEWS

US and Ukraine Sign Landmark Deal on Natural Resources

Tosin OnisuuruBy Tosin OnisuuruMay 1, 2025No Comments2 Mins Read
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The United States and Ukraine have finalized a long-anticipated agreement granting Washington shared profits from future sales of Ukraine’s vast mineral and energy reserves, following months of tense negotiations.

This deal aims to solidify U.S. economic and strategic interests in Ukraine’s recovery and defense, while addressing domestic concerns in Washington about the scale of American aid already provided since Russia’s full-scale invasion began in February 2022.

Ukraine is known to possess rich reserves of critical minerals such as graphite, lithium, and titanium—vital components for renewable energy systems, defense technologies, and key infrastructure. These resources are now central to a new U.S.-Ukraine partnership that will also establish a Reconstruction Investment Fund designed to attract global investment into Ukraine’s post-war economy.

“This deal demonstrates our joint commitment to long-term peace and prosperity in Ukraine,” said U.S. Treasury Secretary Scott Bessent, who described the agreement as a way to “unlock Ukraine’s growth assets.”

Ukrainian Deputy Prime Minister Yulia Svyrydenko, who signed the agreement in Washington, emphasized that while Ukraine retains ownership of its natural resources, profits will be shared equally (50:50 basis) under the framework of the deal. She added that the agreement covers sectors including oil, gas, and minerals, and still requires ratification by Ukraine’s parliament.

Crucially, the agreement outlines new U.S. contributions to Ukraine’s defense, including air defense systems, in exchange for access to future revenue from strategic resources—marking a shift from earlier demands by President Donald Trump, who sought direct repayment for all U.S. aid already delivered.

“They have great rare earth materials… It’s a big asset they have,” Trump said during a NewsNation interview, justifying the agreement as a way to recoup America’s multi-billion-dollar investment and secure key resources amid an ongoing trade war with China.

A U.S. Treasury statement noted the deal reflects “recognition of the significant financial and material support provided to Ukraine” and affirms a commitment to transparency, oversight, and traceability of funds.

Despite last-minute tensions over governance and transparency provisions, both nations moved forward after a face-to-face meeting between Trump and President Zelensky at the Vatican. A U.S. official confirmed the deal had been stalled briefly due to Kyiv attempting to revisit certain clauses over the weekend.

The Kremlin has not yet responded to the agreement.

The newly signed resource-sharing and investment pact marks a strategic milestone in U.S.-Ukraine relations, aligning financial support with long-term mutual gains in security, energy, and economic recovery.

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Tosin Onisuuru

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