After months of intense negotiations, Ukraine signed an agreement Wednesday that gives the U.S. preferential access to Ukrainian mineral resources in return for American investment in the war-torn country's reconstruction.
The deal is a full economic partnership that will allow President Donald Trump to negotiate with Russia on a stronger basis, Treasury Secretary Scott Bessent said Thursday.
The agreement was due to be signed in February, but collapsed after a heated exchange between Trump and Ukrainian President Volodymyr Zelenskyy on how to end the Ukraine-Russia war.
The accord establishes a joint investment fund for Ukraine's reconstruction as Trump tries to secure a peace settlement in three-year-old war, according to Reuters.
With more than 5% of the world's total mineral resources, Ukraine is a top 10 global provider because of its diverse geological zones, according to the World Economic Forum.
Ukraine has 20,000 mineral resources of 116 different types, 3,055 (15%) of which were active before Russia's invasion in 2022.
One of the main drivers of the U.S. pressure campaign to lock Ukraine into a minerals deal is the Trump administration's focus on China, which is the world's largest producer of rare earth minerals. China has slowly grown to control the entire sector over the past 30 years.
The minerals are crucial in a variety of industries such as health care, power generation, petroleum refining and consumer electronics, and they can play a crucial role in national security, energy independence, environmental future and economic growth, according to the U.S. Department of Energy.
Ukraine has deposits of 22 of the 34 minerals identified by the European Union as critical, according to Economy Ministry data. That includes industrial and construction materials, ferroalloy, precious and non-ferrous metals, and some rare earth elements.
Kyiv says these resource represent trillions of dollars of untapped mineral wealth, but industry experts say it could take years for investors to make significant profits from a sector reeling from war and chronic underinvestment.
In addition to minerals, the agreement includes sharing oil and natural gas resources, according the BBC, which said Ukraine will retain ownership while giving the U.S. joint access.
The BBC also reported it appears Trump will no longer demand Ukraine repay the U.S. for American military aid received during the war.
CONTRIBUTING Francesca Chambers, Kim Hjelmgaard
SOURCE Reuters; U.S. Geological Survey; Ukrainian Geological Survey; USA TODAY research