KYIV In a significant development for both nations, the United States and Ukraine have finalized a long-anticipated agreement that establishes a new reconstruction and investment fund. This groundbreaking deal will grant the U.S. access to Ukraine's abundant reserves of critical minerals and natural resources, which are essential for modern technology and energy solutions.

The agreement is not merely an economic partnership; it also aims to provide Ukraine with implicit security guarantees. These assurances are crucial as Ukraine continues to defend itself against the persistent threat of Russian aggression, particularly following over three years of full-scale war instigated by Russia.

Ukrainian Economy Minister Yulia Svyrydenko, who traveled to Washington specifically to sign the deal on Wednesday, lauded this agreement as a pivotal step in attracting global investment to Ukraine. On her Facebook page, she emphasized that the agreement offers "mutually beneficial conditions for both countries." She reiterated the United States' commitment to fostering long-term peace in Ukraine and acknowledged the sacrifices Ukraine has made for global security, referencing the U.S.-brokered deal that led to the transfer of nuclear warheads from Ukraine to Russia following the dissolution of the Soviet Union in 1991.

In a statement about the deal, U.S. Treasury Secretary Scott Bessent described it as a "historic economic partnership," underscoring the United States' dedication to helping bring an end to the devastating conflict. The White House further highlighted that this partnership sends a firm message to Russia that the United States is invested in Ukraine's long-term success.

What's Included in the Agreement?

The agreement creates a fund that will be managed by three board members from each nation. This fund will be responsible for overseeing the distribution of royalties, license fees, and other proceeds generated from natural resource projects in Ukraine, with both nations receiving half of the earnings. Significantly, the United States will hold the first right of refusal when it comes to purchasing these resources or designating a buyer.

Former President Trump has previously expressed admiration for Ukraine's rich deposits of rare earth metals, which are crucial components in advanced batteries and various high-demand technologies. The White House has clarified that the investment projects covered under this deal will not only focus on minerals but will also encompass hydrocarbons, including oil and gas, along with necessary infrastructure development.

Maxim Timchenko, the CEO of Ukrainian energy provider DTEK, characterized the establishment of the reconstruction fund as "a significant step forward in the country's recovery from war," highlighting its potential to attract private investment in a nation that possesses some of the largest untapped reserves in Europe.

Ukrainian Prime Minister Denys Shmyhal, speaking on the eve of the signing, noted that the investment fund represents a 50-50 partnership with the U.S. and will be instrumental in Ukraine's reconstruction and development. He assured that the deal allows Ukraine to determine the specifics of extraction and reiterated that there would be no debt obligations imposed on Ukraine in relation to the United States.

A senior official from the Trump administration confirmed this stance, stating that the agreement is not a traditional debt agreement that often complicates international financial dealings. Instead, it aims to facilitate direct collaboration without imposing financial burdens on Ukraine.

Potential for Renewed Relations

Volodymyr Landa, a senior economist at the Centre for Economic Strategy in Kyiv, has closely monitored the minerals deals progress. He expressed hope that the agreement could pave the way for rejuvenated relations between Ukraine and the U.S. by providing clarity on future military and financial support from Washington.

This agreement also represents a notable victory for Ukraine following a series of tense exchanges with the Trump administration. Earlier this year, President Trump had urged Ukrainian President Volodymyr Zelenskyy to sign an unfavorable deal that would have resulted in minimal benefits for Ukraine while redirecting profits to cover U.S. aid already extended to the country. Zelenskyy famously declined, warning that such an agreement would burden future generations of Ukrainians with debt.

Following tense negotiations, both leaders had the opportunity to meet face-to-face at Pope Francis' funeral in Rome, which Zelenskyy described as a "good meeting" on social media. White House communications director Steven Cheung also indicated that the meeting was productive and that further details would emerge subsequently.

The agreement is now pending approval from Ukraine's parliament, marking a critical juncture in the ongoing relationship between these two nations.

NPR's Hanna Palamarenko contributed to this report from Kyiv.