On Wednesday (April 30), the United States and Ukraine announced the signing of a mineral deal. The U.S. will prioritize access to Ukraine's critical minerals, including rare earths, through joint investments and will provide funding for Ukraine's reconstruction.
U.S. President Donald Trump said that the agreement could provide economic incentives for U.S. aid to Ukraine.
The Ukrainian side claimed that the agreement is mutually beneficial, but the draft did not specifically mention U.S. security guarantees for Ukraine.
On that day, U.S. Secretary of the Treasury Scott K.H. Bessent signed the agreement with Ukraine's First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko. Ukraine's Prime Minister Denys Shmyhal stated that the agreement would establish a U.S.-Ukraine reconstruction investment fund, creating a "partnership of equals" between the two countries for ten years.
Shmyhal noted that the fund would be equally shared by the U.S. and Ukraine, granting both sides equal voting rights. Ukraine would retain full control over its mineral resources, infrastructure, and natural resources. The U.S. Department of the Treasury indicated that the U.S. International Development Finance Corporation would negotiate the details of the agreement with Ukraine.
Cancellation of past military aid repayment
The agreement did not specify U.S. security guarantees for Ukraine. However, it mentioned that both sides agreed to confirm their long-term strategic alliance and the U.S. support for Ukraine's "recovery and integration into global economic systems."
According to Reuters, Ukraine removed the clause requiring it to repay past military aid to the U.S. and agreed to seek tangible security guarantees in future peace agreements.
The agreement also stipulates that funding for the joint investment fund will be paid in cash, and U.S. military aid to Ukraine after the signing will count towards the U.S. investment share, while aid provided before the signing will not be included.
Both parties confirmed that the signing of the mineral agreement would not conflict with Ukraine's European integration path. The ownership of the Zaporizhzhia nuclear power plant within Ukraine was not mentioned.
Still, some mineral deposits are difficult to extract
The New York Times reported that the Trump administration had at least rejected a Ukrainian request for the agreement to ensure continued U.S. military aid. Reuters disclosed that both sides had repeatedly negotiated the details of the agreement, and the Ukrainian side requested last-minute changes, believing that the initial draft favored U.S. interests too much.
Ukrainian authorities claimed that the country possesses more than 20 types of important mineral resources, but the Times analyzed that these deposits are not that easy to extract, and their specific locations and storage amounts have not been thoroughly explored. Currently, Ukraine generates about US$1 billion (approximately HK$7.75 billion) annually from the sale of natural resources, far less than the hundreds of billions Trump claimed the U.S. could profit from the agreement.
In an interview on Wednesday night, Trump stated that he believes the agreement theoretically means the U.S. could profit from Ukraine, and he does not want to appear foolish by failing to recoup investments. When asked whether the mineral agreement could pressure Russian President Putin, Trump merely said it was possible.
Ukrainian President Zelensky had previously emphasized that reaching an agreement itself is not the goal, but rather to pave the way for subsequent peace negotiations between Russia and Ukraine and to secure U.S. military aid.
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