US and Ukraine Ink Critical Minerals Pact with anti-China Clause
US President Donald Trump sat down to meet privately with Ukrainian President Volodymyr Zelenskyy in St. Peter’s Basilica in Vatican City (Image credit The White House)
U.S. and Ukraine Sign Economic Partnership to Bolster Reconstruction Efforts
By TRH News Desk
New Delhi, May 1, 2025 – The United States and Ukraine formalized an economic partnership with the signing of the United States-Ukraine Reconstruction Investment Fund, aimed at accelerating Ukraine’s economic recovery following years of conflict. The pact binds Ukraine into the US assistance for reconstruction with sharing of rights over critical minerals.
The announcement was made by U.S. Treasury Secretary Scott Bessent, who credited President Donald Trump’s “tireless efforts to secure a lasting peace” for paving the way for this agreement.
The deal, signed in the presence of Ukrainian officials, establishes a framework for joint investment in Ukraine’s reconstruction, focusing on leveraging the country’s natural resources, including aluminum, graphite, oil, and natural gas.
The U.S. International Development Finance Corporation (DFC) will collaborate closely with the Ukrainian government to operationalize the fund, emphasizing that “economic security is national security,” as stated by Secretary Bessent in his official statement on X.
The agreement comes amidst ongoing efforts to stabilize Ukraine economically after Russia’s invasion, which began in February 2022. It follows months of negotiations, with the U.S. committing to a long-term partnership that ensures mutual benefits for both nations.
Ukrainian Prime Minister Denys Shmyhal described the deal as a positive step for economic recovery, while Economy Minister Yulia Svyrydenko, who signed the agreement on behalf of Ukraine, highlighted its potential to attract global investment.
The fund, structured as a 50/50 partnership, aims to attract global investment while ensuring Ukraine retains control over its resources. The agreement also includes provisions for zero tariffs between the U.S. and Ukraine, with the U.S. pledging to involve other partners in the initiative.
While the deal has been hailed as a step toward lasting peace and prosperity, its implementation and the allocation of funds will likely remain under scrutiny as both nations move forward.
The next step involves approval by Ukraine’s parliament, after which the DFC and Ukrainian authorities will finalize the fund’s governance structure.
“No state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine,” added Bessent. This is widely believed aimed at China, which is accused by the western world for helping the war efforts of Russia against Ukraine.
The pact has also been inked after weeks of bickering between the US and Ukraine over the Critical Minerals after the famous spat between Ukrainian President Volodymyr Zelenskyy and Trump at the Oval Office in Washington D.C.
Follow The Raisina Hills on WhatsApp, Instagram, YouTube, Facebook, and LinkedIn
About The Author
