After months of tense negotiations, the United States and Ukraine have signed a landmark agreement granting Washington access to Ukraine’s critical minerals and natural resources. In return, Kyiv expects long-term American support for its defense and reconstruction efforts amid its ongoing war with Russia.
According to Ukrainian officials, the final version of the deal, signed on Wednesday, offers significantly more favorable terms for Ukraine compared to earlier drafts. Previous iterations had reportedly diminished Ukraine’s role to that of a junior partner while granting the U.S. unprecedented rights over Ukrainian assets.
Although the full text of the agreement has not been released, Ukraine’s Ministry of Economy and the Prime Minister’s Office disclosed several key provisions.
Strategic Mineral Access in Exchange for Reconstruction Support
The agreement, which must still be ratified by Ukraine’s parliament, will establish a joint reconstruction fund. Ukrainian officials see this as a mechanism for channeling future U.S. military and infrastructure aid. Notably, a prior version of the agreement nearly collapsed during a tense Oval Office meeting involving U.S. President Donald Trump, Vice President JD Vance, and Ukrainian President Volodymyr Zelensky.
“We’ve developed a mutually beneficial framework. This agreement reflects the U.S. commitment to long-term peace in Ukraine and recognizes the security contribution Ukraine made by giving up its nuclear arsenal,” said Ukraine’s Economy Minister Yulia Svyrydenko in a Facebook post.
What’s Included in the Deal?
The agreement covers access to a broad range of critical resources, including rare earth elements, oil, and natural gas. However, it excludes currently exploited state-owned assets, meaning any profits will come from new projects.
While President Trump has expressed consistent interest in Ukraine’s rare earth elements, Ukrainian officials have noted that resources like lithium, titanium, and uranium may also be included. Importantly, Ukraine retains full ownership of its resources and will decide what can be extracted and where.
The deal imposes no debt obligations on Ukraine, meaning the country is not required to repay the U.S. for previous aid using resource revenues.
What Are Rare Earth Elements?
Rare earth elements (REEs) are a group of 17 minerals vital for modern technology—including smartphones, hard drives, electric vehicles, and defense systems. China dominates global REE production, which has prompted the U.S. and European allies to seek alternative supply chains. Ukraine’s reserves offer a strategic opportunity to diversify away from Chinese dominance.
How Will the Reconstruction Fund Work?
The agreement sets up a jointly-managed investment fund dedicated to Ukraine’s postwar recovery. According to Minister Svyrydenko, the U.S. International Development Finance Corporation will support the fund, which aims to attract Western capital and technology for infrastructure, mining, and energy development.
Ukraine will contribute 50% of all future profits from government-owned resource projects to the fund. The U.S. will provide direct financing, military hardware (including air defense systems), and other forms of support. Crucially, no profits will be withdrawn from the fund during its first 10 years—ensuring full reinvestment into national reconstruction.
Earlier in negotiations, Trump administration officials had pushed for $500 billion in profits from resource exploitation as war-time compensation. Zelensky firmly rejected that, declaring he would not accept a deal that would burden “ten generations of Ukrainians.”
Ukraine’s Mining Potential and Challenges
Ukraine’s rare earth sector remains largely untapped due to outdated regulations, insufficient geological data, and war-related disruptions. Reserves are scattered, and existing surveys are considered outdated by industry experts.
Nevertheless, Ukraine holds promise. It possesses some of Europe’s largest known reserves of titanium—a key material for aerospace, medical, and automotive industries—as well as significant lithium deposits needed for batteries, ceramics, and glass.
In 2021, mining contributed 6.1% to Ukraine’s GDP and 30% of its exports. However, analysts estimate that about 40% of the country’s metal-rich regions are currently inaccessible due to Russian occupation. The Ukrainian government argues that rapid development of remaining reserves is critical to stay ahead of further territorial losses.