US and Ukraine sign long-awaited natural resources deal

The US has signed a deal with Ukraine on the joint exploitation of its energy and mineral resources, after months of tense negotiations.

The two countries have agreed to establish a reconstruction investment fund to spur Ukraine's economic recovery from its war with Russia.

US Treasury Secretary Scott Bessent said it showed both sides were committed to lasting peace and prosperity in Ukraine. For Kyiv, the deal is seen as essential to accessing US military aid.

Ukraine is believed to have vast reserves of critical minerals like graphite, titanium and lithium. They are highly sought after because of their use in renewable energy, military applications and industrial infrastructure.
According to the statement from the US Treasury on Wednesday afternoon, the newly created US-Ukraine Reconstruction Investment Fund recognises the "significant financial and material support" the US has given Ukraine since Russia invaded in February 2022.

Announcing the agreement, US Treasury Secretary Scott Bessent said the creation of the United States-Ukraine Reconstruction Investment Fund was a signal to Russia that the Trump administration was “committed to a peace process centred on a free, sovereign, and prosperous Ukraine over the long term”.

“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,” Bessent said in a statement.

“The United States will retain the right of first profit, and military aid (previously provided) will be counted as a contribution to the fund.

The agreement does not provide for the return of funds invested by Ukraine,” Bloomberg notes.