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.
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. US investments will be tax-free, while Ukrainian exports of rare earth minerals to the US will be immune from tariffs.
Bessent denied that any changes had been made from the US side, while Ukraine’s prime minister said that it contained no obligations regarding previous US military suport.
The 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 told the news outlet.
This is a breaking news report. More to follow…
