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On 1 May 2025, Ukraine and the United States signed a landmark agreement on critical minerals and economic cooperation, marking a watershed moment in their bilateral relationship. If the details released by Ukraine’s Economy Minister Yulia Svyrydenko are true, Kyiv has achieved a diplomatic triumph, turning a potentially predatory colonial-type deal into a balanced and mutually beneficial partnership. This agreement not only reshapes Ukraine’s economic future, but also sends a powerful signal of its resilience and strategic manoeuvring in a complex geopolitical landscape.
From exploitation to justice: The terms of the deal
The agreement, as Ukrainian officials point out, is fundamentally different from the Trump administration’s initial proposal, which raised concerns about its exploitative overtones. Here are the key provisions that highlight Kyiv’s success in protecting its sovereignty and economic interests:
- Preservation of Ukrainian ownership: Ukraine retains full control over its mineral resources, with the exclusive right to decide what to extract. This provision ensures that Kyiv remains the steward of its natural wealth, eliminating the uncertainty that existed in previous projects.
- Equal partnership in an investment fund: The agreement provides for the establishment of a joint Ukrainian-US Reconstruction Investment Fund, where both parties have equal shares and jointly manage the activities. This is a significant departure from the original proposal, which envisaged US dominance and control.
- Revenue distribution only from new projects: The fund will be financed by 50% of the profits from new franchises in the mining, oil and gas sectors, without affecting existing operations. This protects Ukraine’s state-owned corporations, such as Naftogaz, from external influence.
- Technologies and investments from the United States: The United States is committed to bringing new technologies and investments to Ukraine, which will help modernise the economy.
- Flexibility of financing: Income and investments in the fund are not subject to strict restrictions, giving Ukraine greater freedom in managing its funds.
- Military aid as an investment: Any new military aid to Ukraine from the US would be considered an American investment in the fund, which reduces the financial burden on Kyiv.
- No obligations to the US: Most importantly, the agreement does not impose any debt or political obligations on Ukraine to Washington, debunking previous speculation about “debt” for US aid.
Kyiv’s diplomatic victory
This agreement is an extraordinary achievement for Ukraine and its legal team, which was reportedly engaged in the negotiations. The previous proposal, which resembled a modern-day equivalent of the Versailles Treaty for Germany, threatened to burden Ukraine with unbearable conditions. However, Kyiv managed to reformat the agreement into a reasonable and fair partnership. According to the Financial Times, pressure on the Trump administration increased after Ukraine hired American lawyers, which helped reduce absurd demands, including the reference to “$350 billion in debt” that Trump used as a political argument.
US Treasury Secretary Scott Bassett emphasised: “This agreement sends a clear message to Russia that the Trump administration is committed to a peace process that has a free, sovereign, and prosperous Ukraine at its core for the long term. And let this be clear: no country or individual that has funded Russia’s war machine will benefit from Ukraine’s recovery.”
Geopolitical context and significance of the agreement
This agreement is not only an economic breakthrough, but also an important step in strengthening the strategic alliance between Ukraine and the United States. It demonstrates that Kyiv is able to defend its interests even in negotiations with a superpower. At the same time, the agreement is not linked to peace talks on a ceasefire, although its signing takes place against the backdrop of complex diplomatic manoeuvres.
The agreement provides Ukraine with some stability to continue its struggle for independence, and engages the US in a more active role in its economic recovery. Although the document does not contain direct security guarantees from the US, it creates economic and political ties that make it difficult for Washington to distance itself from Ukraine in the future.
Challenges and prospects
Despite the obvious benefits, the agreement does not eliminate all risks. The temptation for the Trump administration to strike separate deals with Russia remains high, especially given the lack of firm security commitments. In addition, the success of the agreement will depend on its practical implementation, in particular, on how effectively Ukraine can use new technologies and investments to modernise its economy.
However, the Agreement is now an example of how Ukraine can seize the initiative and turn unfavourable circumstances into opportunities despite pressure and challenges. This is not only an economic but also a symbolic triumph that confirms: Ukraine remains sovereign, resilient and ready to fight for its future.
Time Ukraine Israel
Date: 1 May 2025
Author: Aleksandr Potetiuiev
