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The White House announced Wednesday night that it had signed an economic partnership with Ukraine. It included agreements with Ukraine regarding the ownership and extraction of natural resources from war-torn countries.
Treasury Secretary Scott Bescent said the agreement, which was established as a reconstruction investment fund for the U.S. and Ukraine, will allow the U.S. to unlock growth assets and ultimately “invest alongside Ukraine” to accelerate the economic recovery.
“As the president said, the United States is working to help promote the end of this cruel and meaningless war. The agreement clearly shows Russia that the Trump administration is committed to a peace process centered around Ukraine, which has long been free, sovereign and prosperous,” Bescent said in a statement. “President Trump envisioned this partnership between the American people and the Ukrainian people to demonstrate both sides’ commitment to lasting peace and prosperity in Ukraine.
“And to make it clear, the states or supplies that fund or supply Russian war machinery are not permitted to benefit from the reconstruction of Ukraine,” he added.
The Russian Embassy in Washington did not immediately respond to requests for comment on the transaction.
Ukrainian Economic Minister Yulia Svyrdenko provided details of the mineral trade outlined in the agreement, saying first that “it is the Ukrainian state that decides what and where to extract” and “Saksoil remains under Ukraine’s ownership.”
Ukraine and the US plan to jointly manage and maintain joint ownership of the investment fund, with neither side having a dominant vote, Svyrydenko said. This is funded by new Ukrainian oil, gas and key mineral licences, with 50% of all revenues directed towards the fund.
“The fund will then invest in key materials, oil and gas extraction projects, and related infrastructure and processing. Specific investment projects will be jointly selected by Ukraine and the US.
Svyrydenko shows in her post that the US will also contribute to the fund. She added that contributions to the fund are not taxed in either Ukraine or the US to ensure “the maximum effectiveness of the investment process.”
Trump said early Wednesday that the deal would serve as a way to regain the funds it provided to Ukraine during the war with Russia.
“I didn’t want to make complicated transactions,” Trump told the cabinet meeting on Wednesday. “Rare earths are called rare for reasons, and they have a lot. We made a deal that the money is safe and we can start digging and do what we have to do.”
It is unclear how much it will cost to repay the US. In her post, Svyrydenko said the agreement “does not include provisions regarding Ukrainian debt to the United States.”
The agreement was signed a few days after Trump met with Rome Ukrainian President Voldimi Zelensky on the sidelines of Pope Francis’ funeral. Trump has improved the pair’s relationship since the oval offices collided in February, characterising the meeting as “beautiful” and suggesting that Zelensky expressed confidence that he “want to make a deal” to end the war.
See the fierce exchange between Ukrainian President Voldy Mie Zelensky, US President Donald Trump, and Vice President of Oval Office JD Vance.
Instead, Trump’s rage was directed at Russian President Vladimir Putin. President Vladimir Putin has criticized the US officials for carrying out a widespread strike against Kiev despite ongoing efforts by US officials to secure plans to end the war that began in February 2022.
Putin met with special envoy Steve Witkov in Moscow about three hours on Friday, with Putin’s aide later describing the discussion as “productive.”
After the meeting, Trump urged Ukraine and Russia to hold a “very high level” ceasefire talks, adding that both sides were “very close” to end the war. The two countries have not met in person since the beginning of the Russian invasion.
NBC News’ Saladine contributed.
This story first appeared on nbcnews.com. More from NBC News:
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