In a major effort to deepen economic ties, Ukraine and the United States have agreed on a deal for a rare earth minerals agreement. The agreement, initialed by Ukrainian officials on Wednesday, will be finalized in the Oval Office between Presidents Donald Trump and Volodymyr Zelenskyy in a planned meeting on Friday. The deal is a move towards integrating the economies of the two countries, with a focus on the exploitation of Ukraine’s rich natural resources.
Fox News confirmed that although the deal has no immediate security pact, it is expected that such conditions will be negotiated in the future. The deal, initially put forward by the White House on the occasion of Treasury Secretary Scott Bessent’s visit to Ukraine in early February, has been viewed as a strategic choice for both nations. Bessent called the deal a “win-win” with the U.S. at the center of Ukraine’s reconstruction after the war and gaining from a reformed Ukrainian economy.
Ukraine is abundant in strategic natural resources, with Europe’s biggest block of titanium, crucial in the production of military aircraft, as well as major lithium deposits necessary for producing electric batteries. Moreover, it possesses vast undiscovered reserves of natural gas. The agreement calls for the U.S. to pursue a 50% interest in mineral extractions, which would represent a move toward U.S. or European processing of the resources instead of China, where much of the processing takes place.
This agreement comes at a time when the U.S. has committed substantial aid to Ukraine’s war efforts, with Congress approving $175 billion in aid and military assistance since Russia’s invasion in February 2022, according to the Committee for a Responsible Federal Budget.
Treasury Secretary Bessent underscored that the real economic dividend will be realized after the war when the reconstruction of Ukraine can prove to be a profitable venture for American companies and investors. Top Wall Street banks like JPMorgan and BlackRock have reportedly shown interest in investing in the post-war recovery of Ukraine, further solidifying the economic prospects of this alliance.
