It took a while, but the United States and Ukraine have signed an "economic partnership" deal that gives the U.S. access to Ukraine's rare-earth precious metals.
The agreement was supposed to be signed in February during President Volodymyr Zelensky's visit to Washington. But the signing was derailed after a contentious Oval Office meeting between Trump and Zelensky cut the Ukrainian president's visit short.
The deal will give the United States access to deposits of minerals critical to its national security, including titanium (used in advanced fighter jets) and lithium (used in batteries). The United States won't "own" the deposits but will have guaranteed access to developing them.
The agreement will not guarantee U.S. aid to Ukraine will continue, a key negotiating point Zelesnky wanted included. Instead, the two nations agreed to set up a joint investment fund in Ukraine with equal contributions from both, according to Ukrainian Prime Minister Denys Shmyhal.
“The American side may also count new, I emphasize new, military aid to Ukraine as a contribution to this fund,” Shmyhal said.
Obviously, this doesn't obligate the U.S. to give Ukraine a penny. But it satisfies one of Trump's main demands; Ukraine pays back America for the $120 billion in aid we've given them.
Treasury Secretary Scott Bessent called it a “historic economic partnership.” His tone toward Ukraine was more measured than in past statements.
“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,” Bessent added. “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.”
The deal gives the US preferential rights to mineral extraction in Ukraine and states that Kyiv will have the final say in what and where is being mined. Ukraine will also retain the ownership of the subsoil.
“All resources on our territory and in our territorial waters belong to Ukraine. It is the Ukrainian state that determines where and what to extract,” said Ukraine’s Economy Minister Yulia Svyrydenko, who signed the deal on behalf her country.
And although Trump has referred to the agreement as a “rare earth” deal, the accord signed on Wednesday goes well beyond that by including other natural resources such as oil, natural gas, gold and copper.
With no "security guarantees," Zelesnky is basically walking away from the deal with little or nothing. Trump wants to see how negotiations with Russia to end the war proceed before making any commitment to Zelensky about future U.S. aid.
What Ukraine got was recognition by the U.S. of Ukraine's sovereign right to exist. Since Democrats in Congress and most Europeans have been claiming that Trump wants Russia to conquer Ukraine, this recognition is about the best that Ukraine could hope for.
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The "Joint Investment Fund" will serve as a depository for the half a trillion dollars in aid Ukraine will need to start rebuilding whenever the war is over. The EU and the rest of the world aren't rushing to stand in line to donate.
Recovery for Kyiv will be a long, hard road.
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