The Trump administration reached a deal with Ukraine to give US investors preferential access to Ukraine’s supply of rare earth minerals on Wednesday, weeks after an Oval Office blow-up between Donald Trump and Volodymyr Zelensky put it on hold.
US Treasury Secretary Scott Bessent announced the news in a press release Wednesday afternoon, which described the agreement as a recognition of “the significant financial and material support that the people of the United States have provided to the defense of Ukraine.”
“As the President has said, the United States is committed to helping facilitate the end of this cruel and senseless war. This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term,” said Bessent.
“President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides’ commitment to lasting peace and prosperity in Ukraine. And to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine,” he continued.
Axios and Bloomberg first reported the deal was to be signed on Wednesday, citing senior Ukrainian officials. Yulia Svyrydenko, Zelensky’s first deputy prime minister, was in Washington for the signing.
Donald Trump’s confrontation of Volodymyr Zelensky in the Oval Office delayed the two countries from reaching a minerals deal (Copyright 2025 The Associated Press. All rights reserved)
The agreement is a modification of a previous offer, in which the US demanded billions in repayment for past investments in Ukraine’s defense. The latest version envisions US investments in Ukraine’s rare earth minerals sector as part of joint deals with Ukrainian businesses that will keep control split 50-50 between the two countries. Investments will be tax-free, while Ukrainian exports of rare earth minerals to the US will be immune from tariffs.
All funds raised for development of Ukraine’s minerals, under the plan, will go into a fund managed jointly by the US and Ukrainian governments. US military assistance going forward will count towards that total, while Ukraine’s prime minister said that it contained no obligations regarding previous US military suport.
Bessent denied that any changes had been made from the US side, though President Donald Trump has repeatedly demanded that Ukraine repay the billions in assistance approved under the Biden administration. The Independent reported that a previous iteration also created a pathway for US control over some Ukrainian infrastructure.
The final deal would also provide for Ukraine’s continued “full control over subsoil, infrastructure, and natural resources,” prime minister Denys Shmyhal said according to the Kyiv Independent.
Zelensky’s deputy economy minister told Axios that the deal was meant to spur further US investment in Ukraine’s defense, rather than to repay past support.
“This agreement is a win-win and it is written in friendly language. it is about investments, investments and investments,” Taras Kachka said.
Svyrydenko added that Ukrainian contributions to the fund would be generated by revenues from new licenses purchased by companies for development.
