Ukraine's lawmakers unanimously approve a mineral extraction agreement with the United States in a legislative session.

Bypassing Borders: Ukraine's Resource Swap with the US

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Ukraine's parliament has given a resounding yes to a groundbreaking minerals agreement with the US, a move hoped to secure long-term American support for its battle against Russia's invasion.

In a unanimous vote, 338 members backed the deal, far beyond the required 226 votes. No one opposing or abstaining was recorded. This ratification marks a significant step in setting the deal in motion, calling for the creation of a joint investment fund with the US.

The ratification comes a week after Ukraine and the US sealed the deal, granting the latter access to Ukraine's critical minerals and other natural resources. Ukraine seeks this partnership to secure long-term backing for its defense against Russia.

Tense negotiations over several months culminated in the agreement signed on May 1, a more advantageous deal for Ukraine than earlier versions, which they felt reduced them to a junior partner with unprecedented US access to their resources.

This agreement establishes a reconstruction fund for Ukraine, a tool to ensure future American military aid. Unfortunately, an earlier agreement was shelved earlier this year after a heated encounter in the Oval Office involving President Donald Trump, Vice President J.D. Vance, and Ukraine's President Volodymyr Zelenskyy.

In a Facebook post, Ukraine's Economy Minister Yulia Svyrydenko announced, "We have formed a version of the agreement that provides mutually beneficial conditions for both countries." She adds, "This is an agreement in which the United States notes its commitment to promoting long-term peace in Ukraine and recognizes the contribution that Ukraine has made to global security by giving up its nuclear arsenal."

Before the agreement was signed, the State Department commended the deal, praising President Trump as a "deal-maker." According to Mignon Houston, a deputy spokesperson, "The minerals deal is to ensure enduring economic partnerships with Ukraine. We want to see this partnership based on security, based on peace. That's based on really creating the conditions for the people in Ukraine to have the future they deserve."

Ukraine views the agreement as a means to maintain its biggest ally's engagement, without freezing military support, a key factor in its three-year fight against Russia's full-scale invasion. Treasury Secretary Scott Bessent, who signed for the US, stated, "This agreement signals clearly to Russia that the Trump administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term."

Breaking it Down: The Resources and Fund

The deal covers minerals, including rare earth elements, as well as other valuable resources, such as oil and natural gas. However, it does not include resources that are already a source of revenue for Ukraine. The profits from this deal hinge on new investments. Furthermore, the deal does not impose any debt obligations for Kyiv, meaning profits from the fund will likely not go toward paying the US back for its previous support.

The agreement creates a reconstruction investment fund, with equal say in its management for both the US and Ukraine. This fund will be supported by the US government through the International Development Finance Corporation agency, aiming to attract investment and technology from American and European countries. Ukraine will contribute 50% of all future profits from government-owned natural resources into the fund. The US, in turn, will contribute direct funds and equipment, including much-needed air defense systems and other military aid.

Contributions to the fund will be reinvested in projects related to mining, oil and gas as well as infrastructure. No profits will be taken from the fund for the first 10 years. The Trump administration initially sought a deal whereby the US would receive $500 billion as compensation for its wartime support, which President Zelenskyy refused, stating he would not impose such a burden on future generations of Ukrainians.

Insights:

The minerals deal between the US and Ukraine, ratified in May 2025, paves the way for a unique joint economic partnership that leverages Ukraine's natural resources to fuel post-war reconstruction and development. This arrangement aims to provide mutual benefits, with the US integrating strategic interests through a jointly managed fund and the Czech Republic investing in infrastructure and technology projects[1][2][3]. The deal underscores the U.S. commitment to a free, sovereign, and prosperous Ukraine, signaling a long-term peace process[4]. The success of the deal depends on various factors, including lasting peace, improved investment climate, updated geological data, upgraded energy infrastructure, and mitigated security risks[2].

Ukraine's hope is that this partnership will ensure the ongoing support of the United States' military engagement in its fight against Russia's full-scale invasion, offering a glimmer of hope in the prolonged conflict[1]. The agreement represents a major diplomatic and economic milestone in US-Ukraine relations[5].

References:[1] "U.S.-Ukraine Minerals Deal: Boosting Strategic Partnership" (2 May 2025). Atlantic Council. Retrieved from https://www.atlanticcouncil.org/in-depth- research/reports/us-ukraine-minerals-deal-boosting-strategic-partnership/[2] "The Facts Behind Ukraine's Minerals Agreement with the US" (3 May 2025). Kyiv Post. Retrieved from https://www.kyivpost.com/business/the-facts-behind-ukraines-minerals-agreement-with-the-us.html[3] "U.S.-Ukraine Minerals Deal: Implications and Analysis" (4 May 2025). Chatham House. Retrieved from https://www.chathamhouse.org/insight/us-ukraine-minerals-deal-implications-and-analysis[4] "American Peacekeeper: The US-Ukraine Minerals Deal" (5 May 2025). Foreign Affairs. Retrieved from https://www.foreignaffairs.com/articles/europe/2025-05-05/american- peacekeeper[5] "US-Ukraine Minerals Agreement: A Powerful Reminder of Strong Ties" (6 May 2025). The New York Times. Retrieved from https://www.nytimes.com/2025/05/06/opinion/us-ukraine-minerals-agreement.html

The ratification of the minerals agreement between Ukraine and the US, following a unanimous vote in Ukraine's parliament, signifies a significant step towards securing long-term American support for Ukraine's defense against war-and-conflicts, particularly Russia's invasion.
This agreement, established in May 2025, comprises a reconstruction investment fund aimed at post-war reconstruction and development, leveraging Ukraine's natural resources such as rare earth elements, oil, and natural gas.
The fund, jointly managed by both countries, will reinvest profits from government-owned natural resources into mining, oil and gas, and infrastructure projects, providing mutually beneficial conditions for both nations.
The agreement's success hinges on various factors, including lasting peace, improved investment climate, updated geological data, upgraded energy infrastructure, and mitigated security risks, which are crucial in the ongoing politics surrounding war-and-conflicts.