Signed: USA-Ukraine Resource Deal Sets Up US Resource Access and Reconstruction Fund
U.S. and Ukraine establish commodity accord - Ukraine and the United States reach an accord regarding unprocessed resources
Wind it down with this juicy scoop: The United States and Ukraine have palmed a new pact, after a kick-'em-hard-and-make-'em-talk negotiation marathon, that promises a reconstruction fund for Ukraine with the U.S. scoring a prime seat at the resource table. Both sides shook on it Wednesday night (DC time) in Washington, but the deets were scarce. The deal popped out at a pivotal moment in talks over a peace treaty: US Prez Donald Trump's been scratching his head over the snail's pace of things in Ukraine.
Trump's been making a ruckus about the potential profits from resource extraction serving as payment for US financial and military aid. With the agreement in place, Trump swaggered that the US stands to haul in way more than they've shelled out. He doubled down on his position that a US presence in Ukraine also means safety for the country.
U.S. Treasury Secretary, Scott Bessent, and Ukrainian Deputy Prime Minister, Julia Swyrydenko, penned the deal in the U.S. capital. The full text of the agreement remained a secret for the time being. Apparently, they're establishing an investment fund for the joint exploitation of Ukrainian natural resources to help finance Ukraine's reconstruction post-war smackdown. This arrangement grants the U.S. preferred access to Ukraine's resources, including rare earth metals crucial for high tech and strategic purposes.
Bessent: Clear Warning to Russia
When queried about the deal's content, Sonny Boy Bessent didn't divulge much, but he looked pleased. He called the deal a clear message to the Russian leadership that the Trump administration is all-in on a long-haul peace process with a free, independent, and thriving Ukraine as its core objective.
Ukrainian Deputy PM Swyrydenko filled in a few blanks. The future reconstruction fund will inject moolah into projects concerning minerals, oil, gas, and related infrastructure. They'll collaborate on determining the projects for funding, and investments will be limited to Ukraine. In the first decade, the fund won't dish out profits or yield, but reinvest them instead.
To quell concerns about a possible sell-out in Ukraine, Swyrydenko underscored that the fund will operate on an even keel with the U.S. Ukraine won't dip into existing resource projects for its share, but it'll hand over 50% of the earnings from future mining licenses or resource sales. Swyrydenko's Facebook update featured a hug-fest photo with Bessent and a crew of smiling underlings.
Swyrydenko: No Repayment for Aid
A major point of contention in the negotiation was if Ukraine would have to repay US military and financial aid through resource extraction. According to Swyrydenko, that ain't on the table.
The US might contribute to the fund with military aid, like air defense weapons, she explained. Ukraine won't shoulder any debts for past weapons or financial aid from the US stemming from the Russian invasion in February 2022. No income taxes will be levied on the fund in either country.
The fairy godmothers and fathers of this agreement have been dancing since February. However, they almost called it off after a game-changing kerfuffle between Trump, Vice President J.D. Vance, and Ukrainian President Volodymyr Zelensky at the White House. Eventually, both sides decided to give it another whirl. In mid-April, Kiev and Washington signed a statement of intent to seal the resource agreement.
Government: Resources Stay Ukrainian
The actual agreement needs Ukrainian parliamentary approval to come alive. Prime Minister Denys Shmyhal claimed before the deal was signed, "Ukraine remains in charge of its resources. That means, land, infrastructure, and resources aren't part of the fund or the agreement."
Zelensky pitched the agreement last fall to tickle Trump's entrepreneurial spirit and lock down security guarantees from the US. However, it appears that those guarantees didn't materialize at the onset.
Last weekend, Zelensky met up with Trump in Rome at the Pope Francis funeral. Snaps of the two chairing opposite each other went viral. When asked about his chat with Zelensky, Trump interviewed stateside that he advised the Ukrainian to get his pen moving, "because Russia is monstrous and strong."
Odessa Heavily Bombed by Drones
While Russia's invasion continues with unabated intensity, Kiev robustly denounced a large drone attack on the Ukrainian port city of Odessa, killing two and injuring five overnight, according to local officials. Buildings, a supermarket, a school, and vehicles were damaged, and several fires broke out, regional governor Oleh Kiper reported. The towns of Kharkiv and Sumy, near the Russian border, also reportedly got hit, although these reports couldn't be corroborated.
- Ukraine
- USA
- Resource Agreement
- Donald Trump
- Kiev
- The United States and Ukraine have signed a new pact, which includes an agreement on the establishment of an investment fund for the joint exploitation of Ukrainian natural resources. This fund aims to help finance Ukraine's reconstruction post-war.
- US Treasury Secretary, Scott Bessent, and Ukrainian Deputy Prime Minister, Julia Swyrydenko, have agreed that investments in the fund will be limited to Ukraine and will not involve any income taxes in either country.
- The Ukrainian government has reassured that Ukraine remains in charge of its resources and that the agreement does not involve a sell-out of Ukrainian resources. Ukraine will hand over 50% of the earnings from future mining licenses or resource sales to the fund.
- The new resource agreement between Ukraine and the United States comes amidst the ongoing war-and-conflicts in Ukraine, with Russia being a major player. The agreement is seen as a bold move to ensure a long-haul peace process and a free, independent, and thriving Ukraine.
