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US and Ukraine sign reconstruction investment fund
Andrew Roth
The United States and Ukraine have finalized an agreement focused on sharing revenues from future sales of Ukrainian minerals and rare earth elements, a strategic move aimed at bolstering American investment in Ukraine’s defense and reconstruction following a potential peace accord with Russia.
This minerals agreement, the result of months of complex negotiations, will create a United States-Ukraine Reconstruction Investment Fund. According to the Trump administration, this fund is expected to assist in offsetting an estimated $175 billion in aid extended to Ukraine since the onset of conflict.
“This agreement makes it clear to Russia that the Trump administration is committed to a peace process focused on a free, sovereign, and thriving Ukraine in the long run,” stated Treasury Secretary Scott Bessent. He further remarked:
President Trump envisioned this partnership as a demonstration of both the American and Ukrainian peoples’ commitment to lasting peace and prosperity. Additionally, it is vital to ensure that any individuals or states involved in financing the Russian military effort will not gain from Ukraine’s reconstruction.
However, the deal has faced criticism, with opponents arguing that the White House has exploited Ukraine’s situation by linking military aid against Russian aggression to the sale of crucial minerals and rare earths.
Ukraine’s First Deputy Prime Minister, Yulia Svyrydenko, confirmed her signing of the agreement on Wednesday. In a post on X, she expressed:
Together with the United States, we are establishing a fund aimed at attracting global investment to our nation.
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Updated at 00.15 CEST
Key events
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A draft agreement reviewed by Reuters indicates that the deal would provide the US with preferential access to new Ukrainian natural resource agreements, though it does not automatically grant Washington a share of Ukraine’s mineral resources or its gas infrastructure.
The agreement stipulates the creation of a joint US-Ukrainian reconstruction fund, which will receive 50% of profits and royalties generated from new natural resources permits issued in Ukraine.
Summary of the day so far
As of 10:15 PM in Kyiv and Moscow, and 3:15 PM in Washington, here’s a summary of today’s key developments:
Ukraine and the US expressed readiness to finalize a minerals agreement, despite last-minute uncertainties regarding the timing. “Our side is prepared to sign. The Ukrainians opted to make some adjustments late last night,” Treasury Secretary Bessent commented, expressing confidence that Ukraine would reassess their position.
Ukraine’s First Deputy Prime Minister, Yulia Svyrydenko, is travelling to the US to finalize the minerals agreement, according to a senior source within the Ukrainian presidency. Prime Minister Denis Shmyhal indicated that the restructured agreement would be ratified by the Ukrainian parliament if signed within the next 24 hours. However, reports surfaced suggesting the US was urging additional documentation that Kyiv felt unprepared to sign.
Russian President Vladimir Putin stated that a small group of Ukrainian soldiers remain trapped in basements within Russia’s Kursk region. Speaking in Moscow, he claimed intercepts indicated that these soldiers were urgently calling for evacuation.
The European Union is strategizing a “plan B” to maintain sanctions against Russia in the event that the US withdraws from peace negotiations with Ukraine, according to the EU’s chief diplomat, Kaja Kallas. “Signs suggest they are contemplating a withdrawal from Ukraine due to the complexities involved in reaching an agreement with Russia,” Kallas told the Financial Times.
Russia and North Korea are initiating the construction of a road bridge to enhance their strategic partnership, Russia’s Prime Minister Mikhail Mishustin announced. This cooperation comes amid reports that around 600 North Korean soldiers have lost their lives fighting alongside Russia in Ukraine.
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Ukrainian President Volodymyr Zelenskyy held discussions with Canadian Prime Minister Mark Carney following Carney’s election victory. Zelenskyy conveyed congratulations and shared thoughts on fostering a complete ceasefire and peace. He expressed gratitude for Canada’s support and anticipated productive cooperation ahead.
The EU is prepared with a “plan B” to ensure economic sanctions against Russia remain in place, should the US disengage from negotiations on Ukraine.
Kaja Kallas, the EU’s high representative for foreign and security policy, remarked:
We are observing indicators suggesting a potential US withdrawal from negotiations, hence our preparations for maintaining economic pressure on Russia while striving for consensus among EU members.
Efforts are still directed towards achieving a workable consensus in line with “plan A”, as a focus shift could inadvertently steer us towards “plan B”.
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Further details emerged regarding reported complications surrounding the US-Ukraine minerals agreement. As previously stated, Yulia Svyrydenko was set to travel to Washington to finalize the agreement, but a source indicated that the US requested the signing of additional documents linked to the main deal.
The Trump administration insisted on the completion of all three documents, but Kyiv officials felt unprepared, as reflected in reports from Politico.
The US advised Svyrydenko against proceeding to Washington until the agreements were finalized.
US says it is ‘ready to sign’ minerals deal ‘this afternoon’
Treasury Secretary Scott Bessent affirmed that Washington is poised to finalize the minerals agreement with Ukraine.
During a cabinet meeting, President Donald Trump directed a reporter’s inquiry regarding the deal to Bessent.
“Our side is prepared to sign,” Bessent confirmed, indicating that changes proposed by Ukraine were made late the previous night.
He reassured that the deal remains unchanged from what was discussed earlier in the week.
The initiation of a new road bridge linking Russia and North Korea follows reports of approximately 600 North Korean troops incurring casualties in the conflict against Ukraine.
Intelligence suggests that North Korea has sustained around 4,700 casualties among its troop deployment of 15,000, leading to enhanced military capabilities gained through their involvement.
Lee Seong-kweun, a member of South Korea’s parliamentary intelligence committee, remarked:
After six months of engagement in the conflict, the North Korean military has demonstrated significant improvements in its operational effectiveness.
Earlier this week, North Korea publicly acknowledged its military’s involvement in Russia’s efforts in Ukraine under directives from Kim Jong-un.
Mikhail Mishustin, Russia’s prime minister, declared that construction has commenced on a new road bridge between the two nations, a step towards bolstering their strategic alliance.
Mishustin highlighted the significance of this bridge in enhancing bilateral relations, noting its potential to symbolize enduring cooperation.
The bridge will be positioned near the historic “Friendship Bridge,” a rail structure built in 1959 post-Korean War.
Pak Thae-song, a senior North Korean official, stated:
This structure will serve as an everlasting monument to the strong bonds between our nations.
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Putin says a small number of Ukrainian troops are still holed up in Russia’s Kursk region
President Vladimir Putin reported on Wednesday that a select number of Ukrainian soldiers remain trapped in basements across the western Kursk region of Russia.
Earlier, Putin had commended his military commanders in Kursk for their “victory” in displacing Ukrainian forces from the area following a Ukrainian incursion last August, as reported by Reuters.
During a public address in Moscow, he disclosed that communication intercepts indicated the remaining Ukrainian personnel were urgently requesting evacuation.
Ukraine, on its part, has claimed that some of its troops are still located within Kursk and in the nearby Belgorod region.
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Updated at 18.33 CEST
Putin expressed confidence in the eventual restoration of Russia’s relations with European nations.
Speaking at a forum in Moscow, he noted that many Europeans align with Russia on certain matters.
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