Ukraine, US finalize historic minerals deal amid ongoing conflict

The recently signed minerals agreement between Ukraine and the United States establishes a joint investment fund focused on Ukraine's reconstruction, granting the US preferential access to new Ukrainian resource deals and ensuring revenues from future joint ventures are split equally. Despite months of negotiations, the deal does not include the clear American security guarantee that President Zelensky sought to deter future Russian aggression. Ukrainian officials highlighted that the agreement signals Ukraine’s reliability to other global partners and maintains Ukrainian control over its resources. The fund’s income will not be taxed in either country, aiming to maximize investment impact, though it still requires approval from Ukraine’s parliament. The deal avoids earlier contentious clauses that would have compelled Ukraine to use mineral wealth to repay US aid. While US and Ukrainian leaders express optimism about the agreement’s potential, ongoing violence and the absence of a broader peace agreement with Russia underscore the deal’s limits.