The United States and Ukraine have formalised a landmark mineral deal aimed at creating a “reconstruction investment” fund, with both governments confirming the agreement amidst a challenging economic backdrop in the US. The announcement was made as the US economy recorded a 0.3 per cent contraction in the first quarter of 2025.
While the precise details of the deal have yet to be revealed by Washington, it is expected that the agreement will grant the US privileged access to Ukrainian mineral resources crucial for high-tech industries. However, Ukrainian Deputy Prime Minister and Economy Minister Yulia Svyrydenko was quick to clarify that Ukraine would retain full ownership of all its mineral assets.
In a statement on X (formerly Twitter), Svyrydenko wrote, "It is the Ukrainian state that determines what and where to extract,” emphasising that both sides would work jointly in managing the fund. She also added that “Neither side will hold a dominant vote – a reflection of equal partnership between our two nations.”
The deal, signed by Svyrydenko on behalf of the Ukrainian government, is seen as an effort to boost Ukraine's economic recovery as the country continues to grapple with the fallout of Russia’s invasion.
Speaking from Washington, US President Donald Trump expressed that the deal, “in theory,” would benefit the US more than Ukraine. He also noted that he was keen to ensure the US did not appear "foolish" by failing to recoup the money it had spent on military and financial aid to Ukraine. Trump’s administration has been vocal in its desire to balance military support with tangible economic returns.
Trump also sought assurances that the US would be compensated for its support, saying, “I wanted to be protected,” adding that it was essential for Washington to secure adequate compensation from Ukraine in exchange for its substantial aid. The US, under Trump, has continually pushed for greater accountability in foreign relations, particularly with respect to Ukraine’s commitments in the ongoing conflict with Russia.
Secretary of the Treasury Scott Bessent further reinforced the US commitment to facilitating Ukraine’s reconstruction and eventual peace. “This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centred on a free, sovereign, and prosperous Ukraine over the long term,” he stated.
The Treasury Department also explained that the new economic partnership would enable both nations to collaborate in investments aimed at boosting Ukraine's economic recovery. “This fund allows us to accelerate Ukraine’s economic recovery, using our mutual assets, talents, and capabilities,” Bessent added.
This agreement forms part of the broader push by President Trump to end the war between Ukraine and Russia. However, Trump has also been vocal in his dissatisfaction with the level of compensation Ukraine has provided for the military and financial aid it has received. As tensions remain high, the US has insisted on greater returns for its support.
In his usual outspoken manner, Trump also attributed the current US economic slowdown to his Democratic predecessor, Joe Biden. “This is Biden’s Stock Market, not Trump’s,” Trump remarked, referring to the 0.3% contraction in GDP. He blamed Biden for the underperformance and insisted that the economy would soon recover, stating, “Our country will boom, but we have to get rid of the Biden ‘Overhang’.”
Trump added, “This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!”
The economic backdrop is fraught with challenges, yet the US’s agreement with Ukraine aims to signal long-term stability, potentially providing a foundation for reconstruction and stronger economic relations in the region.
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