The United States and Ukraine have entered into an agreement to jointly invest in Ukraine’s mineral resources, oil, and gas sectors. This move reportedly fulfills a key request from the White House and provides crucial support to Ukraine.

What Happened: The newly established “United States-Ukraine Reconstruction Investment Fund” will facilitate collaboration between the two nations to boost Ukraine’s economic recovery. According to a Washington Post report on Wednesday, Scott Bessent, the U.S. Treasury Secretary, highlighted the agreement’s importance in demonstrating the U.S. commitment to a free and prosperous Ukraine.

He said, “This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term.”

Yulia Svyrydenko, Ukraine’s Minister of Economy, emphasized that the agreement reflects the U.S.’s dedication to Ukraine’s security and recovery. The document, seen by The Washington Post, underscores a strategic alignment between the countries, though it lacks specific security guarantees.

The agreement notably excludes the Zaporizhzhia nuclear power plant, which was seized by Russia in 2022. U.S. officials have suggested taking control of the plant in a future peace deal. Ukraine’s initial proposal under President Volodymyr Zelensky was revised after disagreements over security and financial terms.

The latest draft addresses Ukraine’s concerns about compliance with European Union laws and removes language requiring reimbursement for past U.S. military aid. Despite uncertainties, the deal is seen as a symbolic gesture of support, with private sector investment still needed for Ukraine’s mineral projects.

Alex Jacquez, a senior Biden-era minerals official, said that while Ukraine has deposits of a “variety of critical minerals” their valuation was largely imaginary.

“There is a reason few of these mining projects are actually being developed outside of China -- under current economic conditions, it makes little sense for investors,” said Jacquez.

See Also: Mike Pence Says Trump Comeback ‘Unrivaled’ In Modern American History But Only Return To Values Of First Term Will Ensure President’s Legacy

Why It Matters: The agreement comes at a time when Ukraine’s recovery is heavily reliant on sustainable investment. Experts have called for a trilateral minerals deal involving the U.S. and the European Union to secure Ukraine's critical mineral assets. Such a partnership could enhance supply chain security and provide geopolitical stability.

Additionally, the deal follows a period of tension between the U.S. and Ukraine. President Donald Trump previously expressed dissatisfaction with Zelenskyy after a contentious meeting at the White House, highlighting ongoing challenges in U.S.-Ukraine relations. Despite these challenges, the finalized agreement marks a step forward in economic collaboration.

Photo Courtesy: LanKS on Shutterstock.com

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal