Ukraine, US sign minerals deal, tying Trump to Kyiv

WASHINGTON: The United States and Ukraine on Wednesday signed a minerals deal after a two-month delay, in what President Donald Trump's administration called a new form of US commitment to Kyiv following the end of military aid.  

Ukraine said it had secured key interests after protracted negotiations, including full sovereignty over its own rare earths, which are vital for new technologies and largely untapped.  

Trump had initially demanded rights to Ukraine's mineral wealth as compensation for US weapons sent under former President Joe Biden after Russia invaded just over three years ago.  

After initial hesitation, Ukraine accepted a minerals accord as a way to secure long-term investment from the United States, as Trump seeks to drastically scale back US security commitments worldwide.  

Announcing the deal in Washington, Treasury Secretary Scott Bessent said it showed "both sides' commitment to lasting peace and prosperity in Ukraine."  

"This agreement signals clearly to Russia that the Trump administration is committed to a peace process centred on a free, sovereign and prosperous Ukraine over the long term," Bessent said.  

"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."  

The Treasury statement notably referred to Russia's "full-scale invasion" of Ukraine—departing from the Trump administration's usual description of a "conflict," for which Kyiv is often held partly responsible.  

In Kyiv, Prime Minister Denys Shmygal said the agreement was "good, equal and beneficial."  

Shmygal said the two countries would establish a Reconstruction Investment Fund with equal voting rights for each side, while Ukraine would retain "full control over its subsoil, infrastructure and natural resources."  

Addressing a key concern for Kyiv, he said Ukraine would not be required to repay any "debt" for billions of dollars in US support since Russia invaded in February 2022.  

"The fund's profits will be reinvested exclusively in Ukraine," he said.  

Ukrainian Economy Minister Yulia Svyrydenko said the deal would finance mineral and oil and gas projects, as well as "related infrastructure or processing."  

Trump had originally sought $500 billion in mineral wealth—around four times the total US contributions to Ukraine since the war began.  

US presence against 'bad actors'  

Trump has resisted offering security guarantees to Ukraine and rejected its aspiration to join NATO.  

But he said on Wednesday that a US presence on the ground would benefit Ukraine.  

"The American presence will, I think, keep a lot of bad actors out of the country or certainly out of the area where we're doing the digging," Trump said at a cabinet meeting.  

Speaking later at a town hall with NewsNation, Trump said he told Ukrainian President Volodymyr Zelensky during a recent meeting at the Vatican that signing the deal would be a "very good thing" because "Russia is much bigger and much stronger."  

Asked whether the minerals deal would "inhibit" Russian leader Vladimir Putin, Trump said, "Well, it could."  

Secretary of State Marco Rubio on Tuesday warned that the US could abandon mediation efforts unless both sides presented "concrete proposals."  

Since beginning his second term, Trump has pushed for a settlement in which Ukraine would cede some territory seized by Russia, which has rejected US-backed overtures for a ceasefire lasting at least 30 days.  

With backing from the international community, Zelensky has ruled out formally conceding Crimea, the Black Sea peninsula seized in 2014.  

However, Zelensky has sought to voice support for Trump's diplomacy following a disastrous 28 February White House meeting, during which Trump and Vice President JD Vance berated him for allegedly being ungrateful for US assistance.  

Calling the agreement "Trump's extortion of Ukraine deal," US Congressman Gregory Meeks, ranking Democrat on the House Foreign Affairs Committee, said Trump should focus his efforts on pressuring Putin rather than "fixating" on Zelensky and Ukraine.  

Ukraine holds about 5% of the world's mineral resources and rare earths, according to various estimates. However, many resources remain untapped, and numerous sites are located in territory now controlled by Russian forces.  

Notably, Ukraine possesses around 20% of the world's graphite, an essential material for electric batteries, according to France's Bureau of Geological and Mining Research.  

Ukraine is also a major producer of manganese and titanium, and claims to have the largest lithium deposits in Europe.  

By RSS/AFP