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After months of tense and somewhat volatile negotiations, the United States and Ukraine signed a historic agreement on April 30, 20205, establishing the United States-Ukraine Reconstruction Investment Fund, also termed as the critical minerals deal.

This strategic pact grants the U.S. shared profits from Ukraine’s extensive mineral reserves and is seen as a major step toward Ukraine’s post-war recovery and long-term security. It is also viewed as a sharp geopolitical maneuver in Washington’s broader effort to reduce reliance on China for rare-earth elements and strengthen Ukraine against ongoing Russian aggression.

The deal was finalized in Washington between Ukraine’s Deputy Prime Minister Yulia Svyrydenko and U.S. Treasury Secretary Scott Bessant, creating a 50:50 investment partnership between the two nations.

Strategic dimensions and US interests

For the United States, the deal is not just about Ukraine’s recovery, it is also about strategic competition with China. Currently, over 90% of the global rare-earth supply originates from China. The U.S. has been aggressively seeking alternative sources to secure its supply chains for technologies vital to national security and economic competitiveness.

Secretary Bessent, who played a central role in brokering the agreement, described the deal as a “signal to Russia that the Trump administration was committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term.” In a video statement, Bessent added that the agreement would help “unlock Ukraine’s growth assets.”

The newly created fund also reflects the significant American financial and military assistance provided to Ukraine since Russia’s invasion in February 2022. The U.S. Treasury emphasized that no entity involved in supporting Russia’s war effort would benefit from Ukraine’s reconstruction. “No state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine,” Bessent stated firmly.

Key Highlights of the U.S.-Ukraine Critical Minerals Agreement

• Establishment of a Joint Reconstruction Fund: The U.S. and Ukraine have created a 50/50 joint investment fund aimed at rebuilding Ukraine’s economy using future revenues from untapped natural resources. ​
• Retention of Ukrainian Sovereignty: Ukraine maintains full ownership and control over its natural resources, ensuring that all extraction projects are subject to Ukrainian approval. ​
• Exclusion of Existing Resource Revenues: The agreement focuses solely on new extraction projects; existing mining operations are not included, meaning immediate profits are not part of the deal.
• No Repayment of Past Aid: Contrary to earlier proposals, Ukraine is not required to repay previous U.S. military assistance through its mineral wealth, alleviating concerns over long-term economic burden.
• Absence of Explicit Security Guarantees: The deal does not include formal U.S. security guarantees for Ukraine, a notable omission given Ukraine’s longstanding requests. ​
• Potential for Future EU Membership: The agreement includes provisions that align with Ukraine’s obligations as an EU candidate state, leaving room for renegotiation if Ukraine joins the European Union in the future. ​
• Strategic Implications: While the deal lacks formal security commitments, U.S. officials view the economic partnership as a de facto strategic assurance, incentivizing Washington to safeguard its investments in Ukraine.

Ukraine’s gains and the path ahead

For Kyiv, the agreement is seen as essential, not only for attracting global investment but also for ensuring continued military and security support from Washington. Ukraine’s Deputy Prime Minister Yulia Svyrydenko hailed the deal as “a strategic agreement on the creation of an investment fund, a partnership fund.”

Svyrydenko clarified that although U.S. firms would benefit from projects in minerals, oil, and gas, Ukraine would retain ownership of its resources. “We are gaining not only investment, but also a strategic partner committed to working with us to drive economic growth and innovation,” she said.

📌Key provisions of the Agreement — in brief:

1. Full ownership and control remain with Ukraine.
All resources on our territory and in territorial waters belong to Ukraine. pic.twitter.com/qEM3nX26S5

— Yulia Svyrydenko (@Svyrydenko_Y) April 30, 2025

Under the deal, all resources from the fund will be exclusively invested in Ukraine for the next ten years. Only after this initial decade will profits be eligible for distribution between the partners. Additionally, the fund will operate under a joint governance structure, with both nations having equal decision-making power.

Crucially, Ukrainian Prime Minister Denys Shmyhal stressed that the agreement would not impact Ukraine’s ongoing efforts to join the European Union. “The agreement will also not conflict with the country’s EU accession process,” he assured. He also highlighted that all earlier grants and assistance from the U.S. would not be retroactively included in the fund’s framework. “This deal includes only new assistance and monetary contributions,” Shmyhal explained during a national telecast.

“This can be both capital investments in the creation of enterprises, in the development of mineral extraction, and agreements on the purchase of one or another product of Ukrainian production according to the ‘take-or-pay’ rules,” he said.

At its core is access to Ukraine’s abundant natural resources, particularly critical minerals like graphite, titanium, and lithium, which are essential in the production of renewable energy technologies, defense systems, and industrial equipment.

Ukraine, which reportedly possesses about 5% of the world’s critical mineral reserves, is now positioning these resources as strategic leverage to secure economic recovery and future security guarantees.

A long-awaited breakthrough

The signing of the deal comes after protracted negotiations marked by repeated delays and political friction, particularly between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy. Talks originally collapsed in February following a dramatic and highly publicized altercation during a White House meeting. Trump reportedly accused Zelenskyy of “gambling with World War Three,” temporarily derailing the agreement.

Despite that, the two leaders resumed talks, culminating in a face-to-face meeting on the sidelines of Pope Francis’ funeral. According to President Trump, that meeting proved pivotal. Speaking to reporters, Trump recounted pressing Zelenskyy to accept the deal: “I was telling him that it’s a very good thing if we can produce a deal that you sign it because Russia is much bigger and much stronger. Russia is just chugging forward.”

The final agreement was reached after Ukraine dropped several last-minute demands, which U.S. officials criticized as attempts to reopen terms previously settled. Transparency, governance, and financial traceability were key sticking points that nearly derailed the negotiations once again.

The deal marks a significant political win for both nations. President Trump had originally demanded full reimbursement for all U.S. military aid given to Ukraine since the war began, a condition that Ukraine successfully resisted.

From a foreign policy standpoint, the agreement also sets the tone for ongoing ceasefire negotiations between Moscow and Washington. While the deal does not include explicit security guarantees, it represents a shift in how the U.S. envisions long-term stability in Eastern Europe, one rooted in economic strength and reduced dependency on geopolitical adversaries.

A signal to Russia and the world

The Kremlin has not issued an official response, but the language of the agreement leaves little ambiguity about Washington’s stance. It explicitly refers to “Russia’s full-scale invasion” and asserts that the reconstruction of Ukraine will be strictly limited to those who did not support or finance the war effort.

In closing remarks, Bessent emphasized the broader implications of the deal: “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.”