After months of tough negotiations and political tension, the United States and Ukraine have reached a new economic agreement designed to secure rare earth minerals for Washington while bolstering Ukraine’s war-battered economy.
The deal was announced Wednesday after a lengthy push from President Donald Trump, who has publicly insisted that Ukraine offer something in return for the billions in aid the U.S. has provided since Russia’s full-scale invasion began in 2022.
“This partnership allows the United States to invest alongside Ukraine, to unlock Ukraine’s growth assets, mobilize American talent, capital and governance standards that will improve Ukraine’s investment climate and accelerate Ukraine’s economic recovery,” said Treasury Secretary Scott Bessent in a video message posted to social media.
While the full structure of the deal has yet to be disclosed, the announcement signals a major shift in the relationship between the two countries. For Ukraine, it is a critical step toward ensuring continued U.S. military support. For the U.S., it opens up access to one of Europe’s most resource-rich countries, home to essential materials like titanium, uranium, and lithium.
A Deal Made Under Pressure
The timing of the deal could not be more important. As the war grinds on, pressure has mounted from all sides. Russia continues its offensive, civilian casualties are increasing, and frustrations have grown in Washington.
Trump has criticized both Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin in recent weeks. He faulted Zelenskyy for decisions that he believes are prolonging the violence and scolded Putin for what he called “very bad timing” in launching new attacks on Kyiv while negotiations were still ongoing.
Despite the tensions, the two leaders met in person on Saturday during the funeral of Pope Francis at the Vatican. According to Ukrainian officials, the framework for the deal was finalized shortly afterward.
Ukraine’s Economy Minister Yulia Svyrydenko called the deal a breakthrough and said it would help draw global investment into the country. “Together with the United States, we are creating the fund that will attract global investment to our country,” she wrote in a statement.
Prime Minister Denys Shmyhal described the agreement as a balanced and strategic step. He said it represents a long-term partnership between the two countries focused on development and reconstruction.
“This is truly an equal and good international deal on joint investment in the development and restoration of Ukraine,” Shmyhal said on national television.
What’s in It for Each Side
The agreement establishes a ten-year investment fund, with both sides contributing financially. Crucially, only new U.S. aid will count toward Washington’s share. Military and economic assistance already sent before the agreement was finalized will not be factored into the balance sheet.
In return, the U.S. will gain structured access to more than 20 types of raw materials deemed critical for national security. These include elements needed for aircraft construction, nuclear power, electric vehicles, and advanced defense technology.
Negotiations leading up to the deal were anything but smooth. After Trump began pushing for access to Ukraine’s mineral wealth earlier this year, talks nearly collapsed during a tense Oval Office meeting. Ukrainian officials rejected what they saw as an overly one-sided proposal. They later submitted a counteroffer aimed at preserving Ukraine’s sovereignty, economic independence, and path toward eventual European Union membership.
Treasury Secretary Bessent told reporters that even in the final hours of negotiation, Ukraine made unexpected changes. “The Ukrainians decided last night to make some last-minute changes,” he said during a White House cabinet meeting on Wednesday morning. “We’re sure that they will reconsider that. And we are ready to sign this afternoon if they are.”
By the end of the day, Ukraine’s cabinet had signed off on the revised terms and authorized Svyrydenko to complete the agreement during her visit to Washington.
Russia’s Response and the Ceasefire Question
The Kremlin responded to the news by reiterating its call for a ceasefire. Russian officials said they are open to peace talks but want several questions answered before agreeing to sit down with Ukraine.
Kremlin spokesman Dmitry Peskov said Washington’s push for quick results may not match the complexity of the situation on the ground. “We realize that Washington wants to achieve quick progress, but we hope for understanding that the Ukrainian crisis settlement is far too complex to be done quickly,” he said during a media call.
Russia rejected a U.S. proposal for a 30-day ceasefire, demanding that Ukraine halt its troop mobilizations and Western countries pause military aid before any truce is considered.
On the battlefield, the war continues to escalate. Ukrainian officials say Russian drone strikes hit the city of Kharkiv this week, wounding at least 45 civilians. Ukraine’s security service also claimed it launched a drone strike inside Russia targeting a military facility. The report remains unverified, but it reflects the ongoing volatility of the conflict.
What Comes Next
The deal still requires ratification by Ukraine’s parliament before it can take full effect. If approved, it could provide a major boost to Ukraine’s rebuilding efforts and ensure a stronger, more permanent partnership with the U.S.
Trump has made it clear he expects returns on America’s investments abroad, especially when it comes to Ukraine. The deal gives him something to point to. For Ukraine, it offers a degree of stability in a time of deep uncertainty.
The hope now is that this agreement becomes more than just a paper victory. Whether it helps speed up the road to peace or simply prolongs a complex war remains to be seen.
