USA and Ukraine sign an important contract for raw materials

USA and Ukraine sign an important contract for raw materials

The United States and Ukraine have signed an “economic partnership agreement” that ensures Washington access to Kiev's rare earths. In return, an investment fund is set up in Ukraine. This agreement comes after intensive negotiations that have been going to the White House in January 2025 since the return of US President Donald Trump.

background of the negotiations

The USA and Ukraine worked on this contract for months, sometimes there were bitter disputes that temporarily questioned American help for Ukraine.

Trump comments on the negotiations

In a phone call with Newsnation, Trump said that he said the Ukrainian President Wolodymyr Selenskyj during her meeting on the sidelines of Pope Francis' funeral that it was "very good" if he signed the contract because "Russia is much larger and much stronger". Trump emphasized that the contract serves to "protect" Washington's contribution to the Ukrainian war effort.

Details of the agreement

The actual overall aid that the United States has had since the Russian invasion in February 2022 is around $ 123 billion. The US Ministry of Finance confirmed on Wednesday that both countries signed the agreement. Finance Minister Scott Bessent said: "As the President has already said, the United States undertakes to contribute to the end of this cruel and senseless war."

reaction from Ukraine

The Ukrainian Minister of Economic Affairs Julia Svyrydenko was in Washington to sign in the name of the Ukrainian government. She made it clear that "all resources on our territory and in the waters of Ukraine in Ukraine belong". The contract regulates the complete ownership and control transfer to Ukraine, which is clearly defined in the agreement.

previous issues

An important point of view of the negotiations was the question of security guarantees and whether the United States would provide them as part of the agreement. Trump had initially rejected and Zelensky described the draft as a request to "sell" his country. Nevertheless, Ukrainian civil servants believe that the US investments and the presence of American companies in Ukraine will increase the security interest of the USA on Ukraine.

mineral wealth of Ukraine

The allied Kievs also have a look at the country's mineral wealth. Ukraine has 22 of the 50 materials classified by the US Geological Survey, including rare earths and others for the production of electronics, clean energy technologies and certain weapon systems.

investments in the Ukrainian economy

The global production of rare earths and strategically important materials have long been dominated by China, which forces western countries to look for alternative sources - including Ukraine. A memorandum of Understanding, which was prepared under the bid government last year, states that the United States will promote investment opportunities in the mining projects of Ukraine for American companies, while Kiev creates economic incentives.

Ukraine already has a similar agreement with the European Union, which was signed in 2021. These developments in the economic partnership between the USA and Ukraine are an important step to stabilize the region and to promote investments in the Ukrainian economy.