Ukraine and US Strike Natural Resources Deal Amid Tensions with Russia
Ukraine has reached an agreement with the United States to jointly develop its vast natural resources, a move seen as a step toward easing tensions with President Donald Trump and advancing his administration’s push for a ceasefire with Russia. Sources familiar with the negotiations revealed that Ukraine’s cabinet is expected to recommend signing the agreement on Wednesday. President Volodymyr Zelenskiy is set to travel to the US on Friday to finalize the accord.
Trump’s Endorsement and Ukraine’s Strategic Shift
Speaking from the Oval Office, Trump confirmed Zelenskiy’s planned visit and expressed his willingness to sign the deal alongside him. “I hear that he’s coming on Friday,” Trump told reporters. “Certainly it’s okay with me, if you’d like to, and he would like to sign it together with me. And I understand that’s a big deal.”
The agreement follows weeks of negotiations after Treasury Secretary Scott Bessent first introduced it in Kyiv. Initial versions were rejected by Zelenskiy due to concerns that the US was demanding too much from the war-torn nation. The final agreement was reached after the US removed its original requirement for Ukraine to allocate $500 billion from resource extraction revenues into a repayment fund for US aid.
Economic and Security Implications
The deal will establish a joint US-Ukraine fund to manage future revenues from Ukraine’s natural resources. While the agreement does not yet specify security guarantees, Ukrainian officials see it as a foundation for further negotiations. US officials argue that economic ties with Ukraine will serve as a de facto security shield, reinforcing support for the nation amid ongoing Russian aggression.
The Financial Times first reported details of the accord, which analysts say provides political benefits for both leaders. “The substance here seems to be less than meets the eye, and it appears to be, by contrast, intensely political,” said Justin Logan, director of defense and foreign policy studies at the Cato Institute. The deal offers Trump a strategic win to promote domestically, while Zelenskiy can use it to mend relations with Washington.
Trump’s Efforts to Maintain Support for Ukraine
The agreement may also serve as a way for Trump to secure congressional support for continued aid to Ukraine, especially if ceasefire talks with Russia remain stalled. Ukraine still depends heavily on US and European allies for weapons and ammunition, making this economic deal a crucial step in maintaining Western backing.
Trump emphasized on Tuesday that the agreement ensures Kyiv has “the right to fight on,” underscoring its significance in US foreign policy. However, tensions between Washington and Kyiv have grown in recent weeks, particularly after Trump’s aides engaged in initial negotiations with Russia before consulting Ukraine. Trump’s subsequent criticism of Zelenskiy on social media further strained relations.
Ukraine’s Economic Prospects and Rare Earth Resources
Prime Minister Denys Shmyhal confirmed on Monday that Ukraine intends to co-invest in the joint fund with the US on a 50-50 basis. The fund will include future revenues from state enterprises and raw material extraction, reinforcing Ukraine’s economic resilience.
Initially, Trump sought $500 billion worth of rare earth minerals, which are critical for high-strength magnets and other technologies. However, Ukraine lacks significant rare-earth deposits that are internationally recognized as economically viable. Instead, the country holds commercial reserves of titanium and gallium—valuable but not sufficient to meet Trump’s initial financial expectations.
Another challenge remains in global rare-earth processing. Even if Ukraine develops viable deposits, most raw materials must be sent to China for refining, as Beijing dominates global processing capabilities.
As Ukraine and the US move forward with their resource-sharing agreement, the deal represents a crucial moment in diplomatic and economic relations. While it may not immediately resolve tensions between Kyiv and Washington, it establishes an economic foundation that could reinforce Ukraine’s strategic position in negotiations with Russia. The partnership signals a shift in geopolitical alliances and highlights the increasing role of economic leverage in global conflicts.