Ahmed AlmahalliWashington, DC — With Kiev and Washington lauding a deal giving the US preferential access to Ukraine's mineral wealth, the agreement is billed to empower President Donald Trump in negotiations with Russia.
The accord, signed in Washington on Wednesday, establishes a joint investment fund for Ukraine's reconstruction as the US president seeks a peace settlement to end more than three years of war between Russia and Ukraine.
For Kiev, the deal positions Ukraine as an equal participant at the negotiation table. For Moscow, Trump has "broken the Kiev regime" because Ukraine would be obliged to pay for US military aid with mineral resources.
"The deal should be seen as a part of the strategy the Trump team is seeking for the Ukraine war," Yasir Atalan, a researcher at the American think-tank, Center for Strategic and International Studies (CSIS), tells TRT World.
"On the one hand, the Trump team made sure NATO is off the table for Ukraine and is holding direct talks with Russia as part of the strategy to end the war, and on the other hand, this deal will signal Russia that the US does not want further aggression towards Ukraine and Russia should accept the negotiation terms," he says.
Trump had demanded compensation for US aid given to Ukraine under his predecessor Joe Biden's administration since the Russia-Ukraine war began.
The US president wanted $500 billion in damages. This is about four times what the US has given to Ukraine, which is $120 billion.
"This economic deal will birth new debates about the US involvement in the region and its long-term impacts will be likely to be reassessed by Russian strategists," says Atalan.
Ukraine touts ownership control
Ukrainian officials affirmed that Kiev would retain ownership and control of all resources within its territory and waters, determining extraction activities.
Economy Minister Yulia Svyrydenko, who signed the agreement on behalf of Kiev after talks with US Treasury Secretary Scott Bessent in Washington, DC, said the deal does not affect privatisation processes or the management of state-owned companies in Ukraine.
She stated Ukrnafta — Ukrainian oil and natural gas extracting company — and Energoatom — the largest producer of electricity in Ukraine — will remain state-owned.
She stated the deal omits any clause regarding Ukrainian debt to the US, an issue President Volodymyr Zelenskyy said Ukraine wouldn't acknowledge in any agreement.
The text of the draft agreement, that Ukraine's Parliament has to ratify, does not mention security guarantees for Ukraine, however, it defines the deal as "an expression of a broader, long-term strategic alignment" between the two countries.
"This deal is an economic deal not a security one. While the deal does not include much on Ukraine security, the signing of the agreement will increase the US stakes in Ukraine's security and its integrity which will help to keep US attention in the region and the war," Atalan tells TRT World.
"Now the US will be a key stakeholder in the new mineral deals within Ukraine and future development projects connected to the natural resources."
Washington and Kiev announce economic deal after Trump pushes Ukraine to pay back US for helping it repel Russia.
Russia and Ukraine claim success
Ukraine is estimated to possess roughly five percent of the world's mineral resources and rare earths.
However, many resources remain unexploited, with some sites under Russian control. Russia controls roughly 20 percent of Ukraine's territory.
Ukraine possesses roughly 20 percent of global graphite reserves, vital for electric batteries, and is a key manganese and titanium producer.
It also claims to have one of Europe's largest unextracted lithium deposits.
Kiev reports rare earth metals in six deposits. Developing Novopoltavske, purportedly a major global site, requires a $300 million investment, it says.
The benefits of this agreement remain unclear, with both Russia and Ukraine claiming success.
"Moscow has lost. [Russian President Vladimir] Putin's attempt to offer the US a stake in the occupied Donbass' mineral wealth has failed. We are strengthening alliances, securing resources to continue our resistance and forcing the world to see Ukraine as an equal player," said Ukrainian Foreign Minister Andrii Sybiha.
And in Russia, Dmitry Medvedev — the former president and prime minister, now serving as the deputy chairman of the Russian Security Council — deemed the deal a defeat for Kiev.
"Trump has broken the Kiev regime into paying for American aid with minerals," Medvedev wrote on Telegram.
"Now they will have to pay for military supplies with the national wealth of a disappearing country."
