In a major step to strengthen Ukraine’s post-conflict reconstruction and cement U.S. interests in the region, the United States and Ukraine have signed a long-awaited minerals agreement. The agreement, which was concluded on April 30, 2025, creates a shared Reconstruction Investment Fund meant to tap into Ukraine’s immense mineral resources to cover reconstruction and the huge assistance extended by the U.S. during the war with Russia.
A Strategic Partnership for Reconstruction
The deal, between U.S. Treasury Secretary Scott Bessent and Ukrainian First Deputy Prime Minister Yulia Svyrydenko, defines the establishment of a 50-50 joint fund. Ukraine pledges to transfer 50% of proceeds from future natural resource revenues controlled by the state—to include minerals, hydrocarbons, oil, and natural gas—to this fund. Contributions toward these efforts should reach as much as $500 billion, similar to the approximated amount of U.S. aid donated since the start of the conflict.
Notably, the accord guarantees Ukraine full ownership of its natural resources. The revenues of the fund go to Ukraine’s reconstruction only, with no conditions allowing stakes to be transferred without the consent of both parties.
Negotiations Characterized by Tensions and Compromises
The road to the agreement was bumpy. Early drafts the U.S. submitted called for rights over $500 billion in Ukraine’s natural resources, a condition Kyiv refused to accept out of fear of compromising sovereignty and in the absence of security assurances.
Ukrainian President Volodymyr Zelenskyy stressed the requirement for security guarantees in addition to economic agreements. But the final agreement does not contain outright security guarantees from the U.S., a contentious point for Kyiv.
Economic and Strategic Implications
Ukraine has substantial deposits of strategic minerals such as lithium, graphite, titanium, and rare earth elements—raw materials necessary for the development of modern technologies and military industries. These deposits make Ukraine a strategic supplier in international value chains and provide the U.S. with a chance to diversify its sources from rivals such as China.
But specialists warn that the advantages of this agreement may not be visible soon. Ukraine’s mining equipment is in poor condition, with Soviet maps, war risks, and poor processing capacity. Lots of funds and time will be needed to completely tap the potential of these resources.
International Reactions and Criticisms
The agreement has received mixed responses all over the world. Russia has strongly condemned the agreement, with Russia’s Security Council Deputy Chairman Dmitry Medvedev stating that the U.S. is pressurizing Ukraine to utilize its mineral resources for paying back military assistance.
Domestically, views are mixed. Some legislators hail the agreement as a shrewd move that enhances Ukraine’s sovereignty and returns American taxpayers on their investment. Others are wary of the precedent it creates, potentially turning grants into loans ex-post facto and raising questions over the moral justification of such transactions.
Looking Ahead
While the minerals deal is a major milestone in U.S.-Ukraine relations, its success is contingent upon successful implementation, hefty investments in Ukraine’s mining industry, and settling long-standing security issues. As Ukraine presses on against Russian aggression, the global community will observe keenly how this deal impacts the country’s reconstruction and regional geopolitical dynamics.
