‘We can start digging’ U.S. and Ukraine sign long-awaited minerals deal, establishing joint reconstruction fund and splitting revenue 50/50
On Wednesday, the U.S. and Ukraine signed an economic partnership agreement granting the U.S. preferential access to new natural resource extraction projects in Ukraine, including ones focused on aluminum, graphite, oil, and natural gas, Bloomberg reports. The agreement, signed at the U.S. Treasury Department on April 30, also provides for the creation of a joint U.S.–Ukrainian investment fund for Ukraine’s reconstruction.
U.S. Treasury Secretary Scott Bessent, announcing the deal, said that it's “time for this cruel and senseless war to end.” He added: “This deal sends a clear message to Russia that the Trump administration is committed to a peace process that has a free, sovereign and prosperous Ukraine at its centre in the long term.” Ukrainian Economy Minister Yulia Svyrydenko, who signed the agreement on Kyiv’s behalf, said the two countries are “creating the Fund that will attract global investment into our country.” Here's what we know about the terms of the deal so far.
The agreement covers 57 types of minerals, including rare earth elements
Ukrainian Economy Minister Yulia Svyrydenko published a list of the new deal's key provisions, which she said guarantee that full ownership and control over “all resources on our territory and in our territorial waters” will remain with Ukraine. Under the agreement, the Ukrainian authorities will determine which resources may be developed. Svyrydenko described the arrangement as “an equal partnership,” noting that the fund would be structured as a 50/50 venture.
The fund will invest in the extraction of critical minerals, oil, and gas, as well as the infrastructure and processing facilities necessary to support them. Project selection will be done jointly by the U.S. and Ukraine. According to the text of the agreement cited by Bloomberg, the parties aim to create conditions that "increase investment in mining, energy, and related technology in Ukraine.” The deal covers 57 minerals, including rare earth elements, European Pravda reports.
The agreement does not regulate extraction or revenues from other natural resources, nor does it cover income from Ukrainian infrastructure — terms the U.S. had initially pushed for.
For the first 10 years, all profits generated by the fund are expected to be reinvested into new projects and reconstruction efforts in Ukraine, Svyrydenko said. “These terms will be subject to further discussion,” she added. In addition to financial contributions, the U.S. may offer other support, including air defense systems. However, the agreement does not include any formal security guarantees for Ukraine, Reuters notes.
“If the [U.S.] government provides Ukraine with new military aid — whether in the form of weapons systems, ammunition, technologies, or training — the U.S. capital contribution to the fund will be adjusted to reflect the estimated value of that military aid,” the agreement reads, as cited by European Pravda.
Svyrydenko said the fund would be jointly managed by the two countries, with neither side holding a dominant role. Washington had initially pushed for full control over Ukraine’s natural resources. Still, Bloomberg reports the signed deal gives the U.S. the right of first claim to any profits transferred into the special investment fund, which will be controlled by Washington.
She emphasized that Ukrainian companies, including the state-owned oil and gas firm Ukrnafta and the nuclear energy company Energoatom, would remain publicly owned.
The agreement contains no provisions related to Ukrainian debt to the U.S. “This [deal] will allow both countries to expand their economic potential through equal cooperation and investment,” Svyrydenko said. Initially, Washington had demanded that Kyiv repay assistance provided since the start of Russia’s full-scale invasion. But three days before the signing, Ukrainian Prime Minister Denys Shmyhal announced that the U.S. would not include past aid in the agreement.
Svyrydenko said the deal was worded to align with Ukraine’s Constitution and “maintains Ukraine’s European integration course.” Kyiv had previously raised concerns that the agreement could infringe on Ukrainian sovereignty or hinder the country’s E.U. ambitions. She noted that only limited, targeted legal challenges would be needed for the fund to start operating, specifically to Ukraine’s Budget Code. The agreement still requires ratification by Ukraine’s parliament.
A last-minute hitch
“We've made a deal where our money is secure, where we can start digging and do what we have to do,” said U.S. President Donald Trump during a Cabinet meeting at the White House on April 30. “It’s also good for them because you’ll have an American presence at the site, and the American presence will keep a lot of bad actors out of the country or certainly out of the area where we’re doing the digging,” he added.
According to European Pravda, the agreement signed in Washington “sets the political framework for cooperation between the two governments on resource development, mineral sales, and American aid, including future military assistance to Ukraine.” However, many of the more politically sensitive details are expected to be spelled out in a separate “technical agreement,” which is still in the works.
The U.S. and Ukraine originally planned to sign a mining cooperation agreement on February 28 during a presidential meeting between Trump and Volodymyr Zelensky in Washington. But after a heated exchange in the Oval Office the signing was canceled, and the U.S. proposed a new version of the deal granting it privileged access to Ukrainian mineral deposits. Negotiations were tense and drawn out over several weeks. The final agreement came after Trump and Zelensky met in the Vatican on April 26 at the funeral of Pope Francis.
Just hours before the signing, tensions flared again when Svyrydenko arrived in Washington. According to the Financial Times, U.S. officials accused Kyiv of backing away from some earlier commitments. A source cited by Bloomberg said the sticking points included fund governance, transparency mechanisms, and financial tracking. Ukrainian officials had hoped to sign a framework deal and iron out the specifics later, but the U.S. insisted that all terms be finalized at once.