Ukraine and U.S. Move Closer to Minerals Agreement Amid Ongoing Conflict

A memorandum of understanding between Ukraine and the U.S. marks a pivotal step toward a minerals deal, with potential benefits for economic reconstruction in Ukraine. While details remain scarce, the agreement reflects the ongoing negotiations and mutual interests of both nations.

Ukraine and the United States have taken a crucial step towards a minerals agreement, signing a memorandum of understanding on a Thursday evening. This agreement, announced by Ukraine's economy minister and deputy prime minister Yulia Svyrydenko, represents progress in a series of negotiations concerning a minerals deal that has seen significant contention.

Though the memorandum provided scant details, it mentioned the establishment of a fund aimed at investing in Ukraine's reconstruction efforts, which have been severely hampered by the Russian invasion that began in 2022. However, there was no clarification on how this fund would be financed. The White House has refrained from commenting immediately on the matter.

In a video call with the U.S. Treasury Secretary Scott Bessent, who was stationed in Washington, Svyrydenko expressed optimism about the agreement's potential benefits for both countries. Bessent did not disclose that he had signed the document but indicated that he anticipated a comprehensive deal to follow soon.

Earlier drafts of the minerals deal had faced backlash, with critics accusing the Trump administration of exploiting Ukraine. Conversely, some versions had included provisions for U.S. support in ensuring security post-settlement. The fruits of these negotiations, particularly regarding Ukraine's rich deposits of rare earth metals, could yield significant economic implications, with estimates suggesting potential earnings of $500 billion for the United States.