Posted on Thursday, May 1, 2025
|
by Alan Jamison
|
0 Comments
|
Building on his legacy as a great dealmaker, President Donald Trump on Wednesday announced a minerals deal with Ukraine following several months of negotiations. The deal was seen as a necessary sign of good faith for the U.S. to continue negotiating a peace deal between Ukraine and Russia.
Bloomberg first reported the news, explaining that the “deal will grant the US privileged access to new investment projects to develop Ukraine’s natural resources including aluminum, graphite, oil and natural gas.” The new deal between the two countries will give the United States the “first claim on profits transferred into a special reconstruction investment fund that would be controlled by Washington.”
“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,” Treasury Secretary Scott Bessant said. “President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides’ commitment to lasting peace and prosperity in Ukraine.”
The Treasury Department explained in a statement that the deal allows the U.S. and Ukraine to “to work collaboratively and invest together to ensure that our mutual assets, talents, and capabilities can accelerate Ukraine’s economic recovery.” Under this agreement, the U.S. government will work with Ukraine to finalize the details and program governance.
Ukraine’s Economic Minister Yulia Svyrydenko signed the deal on behalf of her country. She explained that the U.S. will provide “air defense systems for Ukraine” with Ukraine contributing “50% of state budget revenues from new rent on new licenses for new areas” as part of the fund.
“The Fund will then invest in extraction projects for critical materials, oil, and gas — as well as in related infrastructure and processing. Specific investment projects will be selected jointly by Ukraine and the U.S. Importantly, the Fund may invest exclusively in Ukraine,” she posted on X. “We expect that for the first 10 years, Fund profits and revenues will not be distributed, but instead reinvested into Ukraine — into new projects or reconstruction. These terms will be subject to further discussion.”
Trump explained in a Cabinet meeting Wednesday that the deal will be good for both countries.
“We made a deal where our money is secure, where we can start digging and doing what we have to do,” the president said. “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.”
Democrats had notably been critical of Trump’s approach toward the Russia-Ukraine war following the president’s blowup with Ukrainian President Volodymyr Zelensky in the Oval Office in February. This latest breakthrough, however, appears to vindicate Trump’s approach toward the war of ensuring any U.S. involvement advances American interests.
Alan Jamison is the pen name of a political writer with extensive experience writing for several notable politicians and news outlets.
Read the full article here
