Ukraine Secures Sovereignty Over Rare Earths with Landmark U.S. Minerals Agreement

On Wednesday, the United States and Ukraine finalized a minerals agreement after a two-month delay, which the Trump administration referred to as a renewed commitment to Kyiv following the cessation of military aid.

Ukraine announced it had achieved significant outcomes after lengthy negotiations, including full control over its rare earth minerals, which are essential for emerging technologies and largely untapped.

Initially, Trump had insisted on acquiring rights to Ukraine’s mineral resources as compensation for the billions worth of military support supplied under former president Joe Biden after Russia’s invasion more than three years ago.

After some initial reluctance, Ukraine accepted the minerals pact as a means to attract long-term investment from the U.S., especially as Trump aims to reduce American security obligations globally.

During the announcement of the agreement in Washington, Treasury Secretary Scott Bessent stated that it demonstrated the commitment of both parties to enduring peace and prosperity in Ukraine.

«This agreement makes it clear to Russia that the Trump administration is dedicated to a peace process focused on a free, sovereign, and successful Ukraine in the long term,» Bessent noted.

«He must be made aware that no nation or individual that financed or supported Russia’s war efforts will benefit from the reconstruction of Ukraine,» he added.

In Kyiv, Prime Minister Denys Shmyhal expressed on national television that the agreement was «fair, equal, and advantageous.»

In a Telegram post, Shmyhal announced the establishment of a Reconstruction Investment Fund in which both nations would hold equal voting rights.

«Ukraine maintains complete authority over its underground resources, infrastructure, and natural assets,» he asserted.

Addressing a crucial concern for Kyiv, he confirmed that Ukraine would not be obligated to repay any ‘debt’ related to the billions of dollars in U.S. military aid and support since the onset of the Russian invasion in February 2022.

«The profits from the fund will be reinvested solely in Ukraine,» Shmyhal affirmed.

Originally, Trump sought $500 billion in mineral resources, an amount roughly four times greater than the U.S. aid provided to Ukraine amid the conflict.

Though Trump hesitated to offer security guarantees to Ukraine and dismissed its hopes to join NATO, he stated on Wednesday that a U.S. presence would be advantageous for Ukraine.

«I believe the American presence will deter many malicious actors from entering the country, particularly in areas where we are conducting mining operations,» Trump remarked during a cabinet meeting.

On Tuesday, Secretary of State Marco Rubio warned that the Trump administration might abandon its role in mediating the conflict—something Trump promised to resolve on his first day in office—unless both sides present «specific proposals.»

Trump has advocated for a resolution in which Ukraine would surrender some territories controlled by Russia, which has dismissed U.S.-proposed ceasefire initiatives that would last at least 30 days.

President Volodymyr Zelensky has ruled out any formal concessions regarding Crimea, the peninsula annexed by Moscow in 2014, an action that is widely condemned internationally.

Nonetheless, Zelensky has sought to express support for Trump’s diplomatic efforts following a contentious meeting on February 28, during which Trump and Vice President J.D. Vance criticized him for allegedly showing ingratitude towards U.S. assistance.

Zelensky was scheduled to sign the minerals agreement at the White House but was abruptly asked to leave after the unexpected on-camera confrontation.

Various estimates suggest that Ukraine possesses about 5% of the global mineral and rare earth resources, though exploration and extraction have yet to commence for many of these assets, with several sites currently under Russian control.

Importantly, Ukraine holds roughly 20% of the world’s graphite, a key component for electric batteries, according to the French Bureau of Geological and Mining Research.

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

After over three years of intense conflict that has resulted in tens of thousands of casualties, including civilians, Russia currently controls about 20% of Ukraine’s territory.

Last August, Ukraine launched a surprise operation into Russia’s Kursk region, and Moscow reported that it had fully cleared Ukrainian forces over the weekend.

On Wednesday, Russia announced that 288 civilians lost their lives during the Kursk operation.