What’s Involved in the US and Ukraine’s Mineral Deal?

The US and Ukraine’s landmark minerals deal gives America preferential access to Ukraine’s valuable resources while establishing a reconstruction fund.

Quick Takes

The US-Ukraine minerals agreement creates a 50-50 partnership granting America preferential access to Ukraine’s vast untapped mineral wealth.
Ukraine will contribute 50% of future profits from government-owned resources to a reconstruction fund, with no profits removed for the first 10 years.
The deal includes 55 critical minerals including rare earth elements, titanium, lithium, and uranium.
President Donald Trump views the agreement as compensation for US military aid during the war with Russia.

Strategic Partnership Formed After Years of War

The United States and Ukraine have finalized a strategic minerals agreement that grants America preferential access to Ukraine’s natural resources in exchange for supporting a reconstruction investment fund. The deal, signed after months of negotiations, comes more than three years after Russia’s invasion of Ukraine and represents a significant shift in economic relations between the two countries. US Secretary of the Treasury Scott Bessent emphasized that this partnership aims to accelerate Ukraine’s economic recovery while potentially helping to “facilitate the end of this cruel and senseless war.”

The agreement was actively sought by President Donald Trump, who reportedly views it as compensation for the extensive US military and economic aid provided to Ukraine during its defense against Russian aggression. Ukrainian President Volodymyr Zelenskyy indicated that the outline of the deal was agreed upon in mid-April, though negotiations over specific terms continued until the formal signing. The partnership creates a framework that could potentially unlock billions in future investment while securing American access to strategically important minerals.

Ukraine and the US have finally signed a minerals deal. What does it include?https://t.co/o7NGk6AQCW

— Chicago Tribune (@chicagotribune) May 1, 2025

What It Means for Ukraine

The final agreement establishes a true 50-50 partnership between the United States and Ukraine, with terms more favorable to Ukraine than earlier versions. The deal is reported to allow Ukraine to maintain ownership of its resources and incur no debt obligations to the United States. A jointly managed reconstruction fund will be established with support from the US International Development Finance Corporation, with Ukraine contributing 50% of future profits from government-owned resources, while the US will provide direct funding and military assistance.

The agreement specifies that no profits will be taken from the fund for the first decade, allowing resources to be reinvested in Ukraine’s reconstruction efforts. The deal covers 55 minerals, including rare earth elements, titanium, lithium, and uranium, but explicitly excludes resources already generating revenue for Ukraine. This mineral wealth represents significant untapped potential, as Ukraine’s pre-war mineral industry accounted for 6.1% of its GDP and 30% of exports in 2021, with the country possessing substantial reserves of titanium and lithium.

Previously, Ukraine pushed heavily for security assurances to deter Russia as part of the agreement. However, the deal does not expressly offer any such guarantees.

Strategic Importance for American Interests

For the United States, this deal represents a significant step toward securing access to critical minerals needed for advanced technologies, reducing dependence on China and other competitors. The agreement aligns with broader American efforts to develop secure supply chains for rare earth elements and other minerals essential for defense technology, electric vehicles, and renewable energy systems. By partnering with Ukraine, the US gains preferential access to these resources while simultaneously supporting an ally’s reconstruction efforts.

Treasury Secretary Scott Bessent said of the agreement in a statement that it “signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term.”