US and Ukraine sign delayed minerals agreement, following Trump’s remarks linking aid to resource access

WASHINGTON, May 1 — The United States and Ukraine signed a long-delayed minerals agreement on Wednesday, with President Donald Trump's administration framing it as a new form of US support for Kyiv following the cessation of military aid.

After months of negotiations, Ukraine secured several key terms, including full sovereignty over its rare earth resources—critical materials for modern technologies that remain largely untapped.

The agreement comes after Trump initially demanded access to Ukraine’s mineral wealth as a form of compensation for the billions of dollars in US military aid sent under former president Joe Biden following Russia’s 2022 invasion.

Though initially hesitant, Ukraine ultimately accepted the deal as a way to secure long-term American investment amid Trump’s efforts to significantly reduce traditional US security commitments worldwide.

At the signing ceremony in Washington, Treasury Secretary Scott Bessent described the pact as a sign of “both sides’ commitment to lasting peace and prosperity in Ukraine.”

“This agreement sends a clear message to Russia: the Trump administration supports a long-term peace process grounded in Ukraine’s freedom, sovereignty, and prosperity,” Bessent said. He added that no individual or entity that aided the Russian war effort would benefit from Ukraine’s reconstruction.

Notably, the Treasury's statement referred to Russia’s actions as a “full-scale invasion,” diverging from the Trump administration’s typical rhetoric downplaying Ukraine’s role in the conflict.

In Kyiv, Prime Minister Denys Shmygal hailed the deal as “fair, balanced and beneficial” in a televised address. He later stated on Telegram that a Reconstruction Investment Fund would be established with equal voting rights for both countries and emphasized that Ukraine would maintain full control over its land, infrastructure, and natural resources.

Importantly, Ukraine will not be required to repay any “debt” for past US military and humanitarian aid, he confirmed, with profits from the fund to be reinvested exclusively in Ukraine.

Economy Minister Yulia Svyrydenko added that the fund will also support mineral, oil and gas projects, as well as related infrastructure and processing facilities.

Trump originally sought up to US$500 billion (RM2.16 trillion) in Ukrainian mineral assets—roughly four times the value of US aid delivered since the war began.

While he has resisted offering Ukraine security guarantees or supporting its NATO aspirations, Trump said the American presence through the mineral deal would help deter “bad actors” from entering key mining zones.

‍

“The American presence, I believe, will keep a lot of bad actors out of the country—or at least out of the areas we’re working in,” Trump said during a Cabinet meeting.

Secretary of State Marco Rubio warned Tuesday that unless both Ukraine and Russia submit “concrete proposals,” the US may abandon its mediation efforts—despite Trump’s campaign pledge to end the war on day one of his presidency.

Trump has advocated for a settlement involving Ukraine ceding some Russian-occupied territory, though Moscow has rejected proposals for even a temporary ceasefire. President Volodymyr Zelensky continues to reject any formal concession of Crimea, which Russia annexed in 2014.

While relations between Kyiv and Washington have been tense, especially following a February 28 White House clash in which Trump and Vice President JD Vance accused Zelensky of ingratitude, Ukraine has remained publicly supportive of Trump’s diplomatic efforts.

Zelensky had been scheduled to co-sign the minerals pact at the White House but was dismissed following the on-camera dispute.

Ukraine is believed to hold around five percent of the world’s mineral and rare earth reserves, though much remains untapped—some of it in territory now under Russian control. The country also holds approximately 20 percent of the world’s graphite, a key component for electric batteries, along with substantial deposits of lithium, manganese, and titanium.

Russia currently occupies roughly 20 percent of Ukrainian territory, with the conflict now in its fourth year and resulting in tens of thousands of deaths, including civilians. — AFP