Raw materials agreement– What the deal with the USA means for Ukraine

After months of negotiations, the United States and Ukraine have signed a raw materials agreement. Both sides confirmed the agreement Wednesday evening (local time) in Washington, but many details of the deal are still unknown. Correspondent David Nauer assesses the significance of the agreement for Ukraine.

Raw materials agreement: What does this deal mean for Ukraine?

The Ukrainian government presents the agreement as a great deal for Ukraine’s reconstruction and security. I think this agreement has two aspects: Economically, the whole thing is rather vague so far. It’s possible that this agreement will eventually lead to projects that bring economic growth and income to Ukraine. Firstly, the US would then gain access to natural resources – and earn something to boot. But the political signal seems much more important to me at the moment. Ukraine is concluding an agreement with Trump, essentially binding the US to itself. That’s a success for Kyiv.

Are these the hoped-for security guarantees in the war against Russia?

As far as we know, concrete security guarantees are not part of the deal. But the agreement is a signal that the US is interested in an independent, free, and ultimately pro-Western Ukraine in the long term. That doesn’t mean Ukraine will win this war, nor does it mean that Ukraine will survive this war as an independent state. The US administration under Trump is considered mercurial. But for now, one can say: The Ukrainians have brought Trump back on board and negotiated quite well. Originally, Trump wanted Ukraine to pay with raw materials for the US military aid it had already provided. That is no longer included in the agreement. 

Some of Ukraine’s most resource-rich regions are located in a war zone. What role does this play in this Raw materials agreement?

As long as there is a war, this agreement will have little concrete impact. The Russians can shell any place in Ukraine if they want. I don’t think the US will invest money in such a risky project right now. Therefore, I expect this agreement to only take effect once the war is over.

What does this deal mean for the peace negotiations/Raw materials agreement?

I don’t think so much. Ukraine has been somewhat strengthened by being able to bind the US to its side. But the problem in these negotiations remains the Kremlin. Russia pretends to want to negotiate, but continues to insist on its maximum war aims. The Kremlin wants to annex large areas of Ukraine and establish a pro-Russian government in Kyiv. I think if they can’t achieve that through diplomatic means, they’ll just keep waging this war. As long as there’s a war, this raw materials deal between the US and Ukraine isn’t worth much.

Peace negotiations: USA and Ukraine sign raw materials agreement

After lengthy negotiations, the United States and Ukraine reach an agreement on access to Ukraine’s natural resources. The United States receives privileged access, but the conditions also appear lucrative for Ukraine. One detail in particular is surprising.

The United States and Ukraine reached an agreement on access to raw materials in Ukraine on Wednesday. With this step, Kyiv aims to solidify its support for President Donald Trump in peace talks with Putin President of Russia in the Ukraine war.

US Treasury Secretary Scott Bessent statement

US Treasury Secretary Scott Bessent said in a video posted on X that this partnership will enable the United States to invest alongside Ukraine, unlock Ukraine’s growth potential, mobilize American talent and capital, and implement US corporate governance standards. This will improve the investment climate in Ukraine and accelerate Ukraine’s economic recovery.

Bessent further said that the agreement was a clear signal to the Russian leadership that the administration of US President Donald Trump was committed to a long-term peace process centered on “a free, sovereign and prosperous Ukraine.”

Ukrainian Economy Minister Yulia Svyrydenko confirmed

Ukrainian Economy Minister Yulia Svyrydenko confirmed the signing of the agreement in Washington to the Associated Press. In a post on X, she explained: “Together with the United States, we are creating a fund that will attract global investment to our country.”

The agreement will grant the US privileged access to new investment projects for the development of Ukraine’s natural resources, including aluminum, graphite, oil, and natural gas. This is seen as a crucial step in solidifying Trump’s support for Kyiv. His administration is pushing for an end to the war that began more than three years ago with Russia’s large-scale invasion of Ukraine.

After weeks of negotiations between Ukrainian and American officials on the text, a breakthrough emerged earlier this week. Ukrainian negotiators arrived in Washington to finalize the details. Both sides had agreed on the main agreement but were discussing details outlined in separate texts.

Ukrainian side had long hoped

The Ukrainian side had long hoped to sign an overall agreement first and finalize the details later, but the US insisted that all components be agreed upon jointly, a person familiar with the matter said.

“We’ve reached an agreement that secures our money and allows us to begin mining and fulfill our responsibilities,” Trump said Wednesday at a Cabinet meeting at the White House. “This is also beneficial to them, because the American presence on the ground will keep many bad actors off the land, and at least out of the area where we’re digging.”

Profits to flow into US-controlled reconstruction funds

The agreement grants the US priority for profits transferred to a special reconstruction fund controlled by Washington. According to a draft of the document seen by Bloomberg News, the US has agreed that only future military aid to Ukraine will count toward its contribution to the fund.

This is surprising, as Trump had consistently insisted that the US would be repaid for its previous aid payments. However, Ukrainian Prime Minister Denys Shmyhal has now announced that Washington has abandoned its demand that the agreement provide for the repayment of billions of dollars in aid already paid since the beginning of the Russian invasion.

The agreement “strengthens the strategic partnership between the parties for the long-term reconstruction and modernization of Ukraine in response to the massive destruction caused by Russia’s large-scale invasion,” said the draft document, which was seen by Bloomberg News.

Washington also recognizes that Kyiv wants to use the agreement to avoid any conflict with its plans to join the European Union – which has long been a red line for Ukraine in the talks.

Deadly drone attacks on Odessa at night

Meanwhile, Russia continues its war of aggression with undiminished ferocity. According to local authorities, two people were killed and five others injured in a large-scale drone attack on the Ukrainian port city of Odessa overnight. Multi-story residential buildings, a supermarket, a school, and cars were damaged, and several fires broke out, according to regional governor Oleh Kiper.

The city of Kharkiv and the city of Sumy, near the Russian border, were also attacked, according to authorities. These reports could not be independently verified.

TrendFiTech Conclusion

The raw materials agreement between the United States and Ukraine signals a deeper strategic alignment during a critical phase of the ongoing conflict. While the economic benefits remain largely aspirational due to ongoing instability, the political implications are immediate—demonstrating Ukraine’s ability to secure long-term commitments from key Western allies. By prioritizing investment-driven reconstruction efforts, the agreement sends a strong message of resilience and forward-looking diplomacy. However, the effectiveness of such deals will ultimately depend on security conditions and broader geopolitical developments in the region.

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Sources used:

• With material from the News agencies  dpa and AFP, ntv.de, Reuters news agency, BBC News and CNN reports. The content has been independently analyzed and rewritten to provide original insights.

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