EXPLAINER: What you need to know about the US-Ukraine minerals deal

The US and Ukraine teams, led by Economy Minister Yulia Svyrydenko and Treasury Secretary Scott Bessent, HANDOUT

After almost two months of back and forth between the United States and Ukraine, they finally signed the minerals deal. The days preceding the signing have been tense.

It sets up an investment fund that Ukraine hopes will cement US assistance.

The deal will give the US preferential access to Ukrainian minerals and natural resources licenses.

The US will, in turn, provide financial and military assistance to Ukraine to help in rebuilding the country post-war. The US-Ukraine Reconstruction Investment Fund.

It will focus on critical industries - particularly oil, gas, and mineral extraction - and will be jointly managed by both countries.

“The partnership will be controlled by a company with equal representation of three Ukrainian and three American board members, who will work together through a collaborative process to make decisions for allocation of fund resources, such as investment and distributions,” the White House said.

Ukraine will also retain full ownership of its land and resources.

“From start to finish, this agreement is a fully collaborative partnership between our nations that both the United States and Ukraine will benefit from.”

This partnership between the United States and Ukraine establishes a fund that will receive 50% of royalties, license fees, and other similar payments from natural resource projects in Ukraine.

Ukrainian President Volodymyr Zelensky termed the deal as the first agreement from discussion he held with his US counterpart, Donald Trump, at the Vatican.

“The agreement foresees no debt. It stipulates the establishment of a Reconstruction Fund that will invest in Ukraine and generate returns in Ukraine. This means joint work with America, based on fair terms, allowing both Ukraine and the United States, which supports us in our defence, to make money in partnership.

“President Trump and I discussed our readiness to conclude this agreement during our meeting in the Vatican. In fact, this is the first tangible outcome of that Vatican meeting, making it historic. We look forward to other outcomes from that conversation — it was a meaningful meeting, and President Trump and I used every minute to the fullest. I thank him for that. And once again, I thank both our teams,” he said.

The country holds deposits of 22 of the 34 minerals classified as critical by the EU, according to authorities.

Ukraine also holds reserves of rare earth metals, a group of 17 metallic minerals including lanthanum, cerium and neodymium, essential for high-tech applications in electronics, defence, aerospace and renewable energy.

The minerals include Lithium, Graphite Coal, Titanium, Rare earth metals, Beryllium, and Uranium.

There is also copper, lead, zinc, silver, nickel, cobalt, and manganese deposits.