Trump's mineral deal exposes Ukraine to increased American financial involvement in its mining sector.
Rewritten Article:
Striking minerals deal may strike a balance in U.S.-China trade relations: Bessent
U.S. Treasury Secretary Scott Bessent discusses the "golden opportunity" minerals deal with Ukraine, pushing for a trade agreement with China, clarifying tariffs, President Trump's tax cuts, and other top legislative topics.
After lengthy and often contentious negotiations between the Trump administration and its Ukrainian counterparts, Washington and Kyiv have sealed what's been called the "Minerals Agreement," granting the U.S. access to Ukrainian minerals, plus investments in energy sectors like oil, gas, and related technology.
On Wednesday, Treasury Secretary Scott Bessent and Ukrainian Minister of Economy Yulia Svyrydenko inked the U.S.-Ukraine Reconstruction Investment Fund, meaning both Washington and Kyiv will jointly fund new energy projects in Ukraine to generate revenue for both nations.
The agreement, giving the U.S. precedence over but not exclusive rights to mineral extraction in Ukraine, stipulates that any future U.S. military aid, such as weapons, ammunition, or training, will be counted as a contribution to the investment fund.
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This would imply that Ukraine must match the investment amount with resources, effectively ending the practice of U.S. donations or gifts to Ukraine, as the resources would now pay for the investment.
While the deal didn't offer specific security assurances for which Ukrainian President Volodymyr Zelenskyy initially requested, it opens Ukraine to greater investment, says Maxim Timchenko, CEO of Ukraine's largest private energy company, DTEK.
"The U.S.-Ukraine Reconstruction Investment Fund marks a significant milestone in the nation's recovery from war," Timchenko stated to FOX Business. "It sends a powerful message to the world that Ukraine is a promising market for business.
"This agreement sets the stage for expediting private investment in an energy sector with Europe's largest untapped reserves," Timchenko concluded.
Timchenko, who was optimistic that an agreement could be reached, visited D.C. weeks prior to the deal's signing to confer with top administration officials about the potential Ukraine holds in its largely untapped resources, focusing on oil and gas reserves in western Ukraine.
Timchenko confirmed "genuine interest" in tapping into these reserves, and as DTEK already collaborates with major U.S. companies like GE Vernova, Fluence, Honeywell, and Venture Global in various commodities like liquefied natural gas (LNG) and grid-scale battery storage, he believes they are well-positioned to expand private investment in Ukraine by leveraging U.S. agencies like the U.S. International Development Finance Corporation and EXIM bank.
Much of Ukraine's energy sector is in the east, close to the war front lines with Russian forces, and frequently targeted since the conflict began in 2014. Diversifying resources away from Russia's border adds another layer of protection from Moscow.
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President Donald Trump has suggested that American companies in Ukraine also provide Kyiv with protection against Russian President Vladimir Putin, although Zelenskyy has pointed out that American companies were operating in Ukraine when Russia invaded in 2022.
It remains unclear whether a U.S-Ukraine deal at this level will deter Russia or affect U.S. efforts to end the ongoing conflict through negotiations.
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Sergei Markov, a former advisor to Putin, told Reuters on Thursday that the deal seems to indicate the U.S. "is viewing itself as a sort of co-owner of Ukraine."
"Consequently, it will take a stance that favors Ukraine," Markov argued.
Similarly, Bessent, while chatting with Maria Bartiromo on Thursday, stated that the Ukraine agreement gave Russian leadership a clear message that there is no daylight between the Ukrainian and American people, as both nations are united by common goals.
"The American people's economic and political fortunes are intertwined with those of the Ukrainian people," Bessent explained. "The U.S. gains when Ukrainians prosper."
The deal may provide Trump with stronger negotiating leverage with Putin, although Bessent did not specify the details.
Timchenko feels the Trump administration "understands that a strong, independent Ukraine benefits America's economic interests," adding, "I believe the U.S. has made a smart investment that it will protect."
[1] U.S.-Ukraine Reconstruction Investment Fund
[2] Ukraine's Critical Minerals
[3] Ukraine Signs Agreement with United States for Reconstruction
[4] U.S.-Ukraine Defense Cooperation Agreement
[5] U.S. Competition with China over Critical Minerals
- The minerals deal between Ukraine and the U.S., as confirmed by Treasury Secretary Scott Bessent, could potentially divert attention away from war-and-conflicts, especially in relation to the ongoing conflict with Russia.
- This minerals deal, if successful, might lead to increased wealth for both nations, as suggested by Timchenko, CEO of Ukraine's largest private energy company, DTEK.
- The recent deal could stimulate investment in the energy sector, particularly in commodities like liquefied natural gas (LNG) and grid-scale battery storage, according to Timchenko.
- The U.S.-Ukraine Reconstruction Investment Fund, sealed by Bessent and Svyrydenko, could potentially increase revenue for both countries, given that they will jointly fund new energy projects in Ukraine.
- The agreement might encourage American companies to invest in Ukraine's minerals, as reported by FOX Business.
- Politics and general news outlets have been discussing the impact of this minerals deal on U.S.-China trade relations, as highlighted by Bessent in his discussions with top legislative topics.
- Cryptocurrency investors might be intrigued by the potential financial implications of this deal, given how it could influence the economy and revenue generation in both Ukraine and the U.S.
