Trump and Zelensky reached a historic agreement on Ukraine's natural resources as the hugely strategic and geopolitical agreement between the United States and Ukraine sought by US President Trump was finally reached, after months of consultations, tensions and diplomatic pressure.
HDN Newsroom
As announced by the US Treasury Department, the agreement mainly concerns rare metals and minerals, which are considered of strategic importance. For Ukraine, this development is critical, as it may be linked to securing future military aid from the US.
U.S. President Donald Trump had already expressed his intention to gain access to Ukrainian rare earths in February, citing them as "in return" for the billions of dollars in aid Washington has already provided to Kiev.
The agreement provides for the creation of an investment fund for the exploitation of mineral, oil and gas deposits, with equal participation of the United States and Ukraine, and is expected to form the foundation of a long-term economic cooperation between the two countries.
According to Ukrainian Prime Minister Denis Smygal, the agreement ensures:
– Creation of a Reconstruction Fund, with equal representation (50-50) of the U.S. and Ukraine.– No debt repayment for U.S. military aid from 2022.
-Reinvestment of all the fund's profits exclusively in Ukraine.
– Maintaining full national sovereignty over the country's natural resources and infrastructure.
Ukraine has about 5% of the world's mineral reserves and significant amounts of graphite, manganese, titanium and lithium. However, many areas remain under Russian control, making mining difficult.
The agreement comes at a particularly tense juncture, as Trump seeks to end the military conflict through territorial compromises – a proposal explicitly rejected by President Zelensky, especially with regard to Crimea.
Ukraine's mineral wealth
Ukraine holds about 5% of the world's reserves of critical raw materials, according to Kiev estimates. These resources, which lie underground but remain largely unexploited, are key to the transition to a green economy and to the West's strategic independence from countries such as China and Russia.
Graphite: With 19 million tons of proven reserves, Ukraine is among the top 5 countries in the world. Graphite is critical for electric vehicle batteries.
Lithium: The country has 30% of Europe's deposits, but none of them have yet been exploited.
Titanium: 7% of European stocks are in Ukraine. This light metal is used in aeronautical and industrial applications.
Rare earths: Although they have not been fully mapped, Ukraine claims to have significant reserves. Rare earths are essential for wind turbines, electronics, weapons systems and high-tech infrastructure. Other metals: Copper, nickel, cobalt, manganese, silver, lead, uranium and beryllium are found in significant quantities.
However, according to a report by SecDev, 63% of Ukraine's coal mines and 50% of the reserves of manganese, tantalum, cesium and rare earths are currently located in areas controlled by Russia.
This gives the geoeconomic game a zero-sum character: what Ukraine loses, Moscow gains.
What Washington seeks, what Ukraine gains
The agreement is part of the broader U.S. strategy to break free from Chinese domination of rare earths and critical raw materials.
China controls about 75 percent of the world market, and in recent years has drastically curtailed exports to the West. In December, he imposed a complete ban on exports of certain rare earths to the U.S., escalating the trade war with Washington.
At the same time, the agreement gives the U.S. strategic support in Ukraine: not only geopolitical, but also economic. The greater the U.S. involvement in mining projects, the stronger the disincentive for Russia to attempt new occupations or the destruction of infrastructure.
U.S.-Ukraine commitment
At the signing of the agreement, U.S. Treasury Secretary Scott Bessent stressed that the agreement demonstrates the commitment of both countries to "lasting peace and prosperity" in Ukraine. He noted that "no state or individual that contributed to the Russian war apparatus will benefit from the reconstruction of Ukraine."
U.S. President Trump added that "the U.S. presence on the ground will act as a deterrent to harmful actors," while Foreign Minister Marco Rubio warned that the U.S. may withdraw completely from the mediation effort if there are no tangible steps toward a peaceful solution.
Semi-financing of mineral extraction
The agreement signed on Wednesday by Washington and Kiev will allow half of "mineral, oil and gas extraction projects" on Ukrainian territory to be financed, Ukrainian Economy Minister Yulia Sviridenko, who is on an official visit to the US capital, announced.
"The document in its current version is a guarantee of success for our two countries, Ukraine and the United States," the minister assured in a lengthy text published on Facebook, stressing that Ukraine would "fully" retain both "ownership" and "control" of its natural resources.
The Fund and Revenue Management
Under the agreement, the revenues will be shared 50/50, ownership of the resources remains in Ukraine, and no taxes are imposed by either the American or Ukrainian sides.
The Fund will be governed by a joint board, with three members from each country, with the U.S. contributing both capital and technology. Washington will have preferential access to investments related to Ukraine's rare minerals, and the right of first preference in future projects.
Although there were initially concerns about American demands of a "colonial character", the final text is noticeably more favorable for Ukraine. The first revenue streams are expected to be reinvested in infrastructure and reconstruction projects, with no profit distribution for at least a decade.
Washington is projecting the agreement as a message to Moscow: that Ukraine remains sovereign, free and developing. Trump, for his part, spoke of a "symbolic repayment" of American aid to Kiev and predicted that the presence of American companies in Ukraine would act as a deterrent to "malicious actors".
The announced agreement has yet to be ratified by Ukraine's parliament, and it is unclear whether it incorporates an explicit security guarantee from Washington — something Zelensky has been strongly seeking.
Challenges and next steps
The implementation of the agreement will not be simple. About 25% of Ukraine's territory is contaminated with landmines, mainly in the east. Demining is a prerequisite for mining. In addition, only 15% of the known deposits were actively exploited before 2022, due to a lack of investment.
While the deal does not offer immediate returns, the entry of U.S. technology, financing, and know-how could transform Ukraine's mining sector.
As the head of the Geological Investment Group stated, "with US capital and technologies, we can create jobs, income and develop post-war Ukraine".
The first Russian reaction
"The signing of a mineral agreement between Ukraine and the U.S. means that U.S. President Donald Trump has finally forced Kiev to pay for U.S. aid," Russia's Security Council Vice Chairman Dmitry Medvedev said.
"Now they will have to pay for military supplies with the national wealth of a country that is being lost," the former Russian president noted in a post on Telegram.
The Kremlin has so far not commented on the deal signed on Wednesday (30/04), after strong promotion by Trump, which will give the US privileged access to new deals on Ukrainian minerals and finance investments in the reconstruction of Ukraine.
