(CN) — The White House on Thursday hailed a minerals deal it signed with Kyiv as a “historic” step toward ending Russia’s invasion and helping war-ravaged Ukraine rebuild.
On Wednesday in Washington, U.S. Treasury Secretary Scott Bessent and Ukraine’s Economy Minister Yulia Svyrydenko signed an agreement to set up a joint economic fund focused on investing in the extraction of Ukrainian minerals, particularly rare earth elements needed for modern technology.
Disagreement over the deal had been a source of deep tension between Ukrainian leader Volodymyr Zelenskyy and U.S. President Donald Trump, who briefly cut off military support to Kyiv because Zelenskyy refused to sign the pact. For his part, Zelenskyy wanted the U.S. to provide Ukraine military protection in exchange for a stake in Ukraine’s mineral wealth.
Under the signed deal, Zelenskyy did not get the security guarantees he wanted, but the agreement opens the door for continued American military support and helps secure an American interest in Ukraine’s future.
On Thursday, the White House said it saw it this way too.
“Importantly, this partnership sends a strong message to Russia — the United States has skin in the game and is committed to Ukraine’s long-term success,” the White House said in a statement. “This partnership represents the United States taking an economic stake in securing a free, peaceful, and sovereign future for Ukraine.”
Speaking to reporters on Thursday, White House Press Secretary Karoline Leavitt said the deal underscored Trump’s commitment to Ukraine and desire to see an end to fighting.
“President Trump has been clear from the beginning he wants the killing in this brutal war to end,” she said. “This agreement shows how invested the president is in securing a truly lasting peace.”
Still, it remains far from clear whether the minerals deal will become a major factor in negotiations to end the war through diplomacy because of the unwillingness of both Russia and Ukraine to back down from their opposing demands.
So far, Trump and his aides have made little progress to get the warring sides to the negotiating table and agree to a ceasefire.
In recent days, Trump and his top officials have threatened to walk away from the peace talks and abandon Zelenskyy due to the lack of progress. On the campaign trail, Trump repeatedly boasted that he could end the war in a day.
After taking office, Trump restored diplomatic ties with Moscow. He has sent Steve Witkoff, a friend and special envoy, to meet Russian President Vladimir Putin four times in just over two months.
But Putin hasn’t budged from his tough demands, including forcing Ukraine to cede territory Russian troops have occupied, to give up its ambition to join NATO and limit the size of its military. Putin also wants Zelenskyy removed from office and to compel Kyiv to adopt pro-Russian policies.
For now, it appears Putin is ready to risk continuing the war in the hope that Ukrainian forces collapse and Trump withdraws U.S. support for Kyiv. Russian forces are making steady advances along the front lines, capturing about 120 square miles in the past two months, according to Deep State, a group of Ukrainian military analysts.
Zelenskyy is pushing on with the war too. His forces, despite their weakened state, are holding off the invaders and launching attacks, often through the use of drones, against the enemy.
Meanwhile, European leaders, led by French President Emmanuel Macron and British Prime Minister Keir Starmer, are continuing to send military and financial aid to Ukraine, but they are unable to match the high level of weaponry and intelligence provided by the U.S.
Ukraine’s parliament must still approve the minerals deal, but it is expected to do that in the coming days. On Thursday, Zelenskyy urged lawmakers to quickly approve the deal.
Under the minerals agreement, the two countries will set up a company with an equal number of Ukrainian and American board members to oversee investments into projects to extract minerals.
Trump has touted the deal as a way for the U.S. to recoup the vast amounts of money it has sent to Ukraine. Under the Biden administration, the U.S. provided Ukraine with roughly $1.6 billion in military aid.
But it is hard to say just how much money can be made from Ukraine’s natural resources, not just because of the ongoing war. Revenue from mineral extraction is to be split evenly between the two countries.
Ukrainian authorities estimate the country possesses about 5% of the world’s rare earth elements, but many of those deposits lie in territories occupied by Russia. Its natural gas reserves are quite large too.
The deal foresees Ukraine contributing 50% of future revenues generated through rents on new licenses for critical raw materials, oil and gas into the fund. American contributions may come from direct funding and future military assistance.
Courthouse News reporter Cain Burdeau is based in the European Union.