The US and Ukraine plan to sign a raw materials agreement next week. Rare earths from Kiev, military and financial aid from Washington – a deal with a signal effect.

Negotiations between the USA and Ukraine on a strategic raw materials agreement are nearing completion. US President Donald Trump announced at a joint appearance with Italian Prime Minister Giorgia Meloni at the White House that the agreement is expected to be signed next Thursday. Trump explained that this was a “mineral deal” that was now being finalized quickly – a project that had been under discussion for months but had stalled due to diplomatic tensions. The announcement was reported by the business newspaper Business Standard, among others, citing official US sources.

A meeting between Trump and Ukrainian President Volodymyr Zelensky had already been scheduled for the White House at the beginning of the year. However, it ended in a scandal: according to a report in the Washington Post, Trump publicly humiliated Zelensky and ended the conversation prematurely. A previously planned agreement was subsequently put on hold.

Now there is movement on the issue: According to the British news agency Reuters, Zelensky confirmed on Thursday evening that a joint declaration of intent would be signed online on the same day. The initiative for this came from the American side. Legal experts from both countries are currently working on the details of the final agreement text.

Strategic deal with rare earths

The core of the planned agreement is US access to strategically important raw materials in Ukraine, in particular rare earths, which play a central role in modern technologies, armaments, and electronics. In return, Ukraine is to benefit from further US military aid and investments—a model that is intended to serve the economic and security interests of both sides.

As Trump explained at the press conference, the goal is to strengthen the “mutual strategic benefit.” According to Business Standard, US Treasury Secretary Scott Bessent described the raw materials agreement as an 80-page contract that is currently still being fine-tuned by lawyers.

In addition, it is planned that part of the proceeds from raw material exports will go into a joint fund to support Ukrainian infrastructure and reconstruction projects. The idea had already been raised in earlier rounds of negotiations and has now been finalized.

Geopolitical relevance of the agreement

The raw materials deal is not only of economic significance: it also sends a geopolitical signal. Ukraine could reduce its dependence on European intermediaries and forge closer economic ties with the US. At the same time, Washington would secure access to critical resources – independently of China, which currently dominates the global market for rare earths.

Foreign policy analyst Mark Galeotti assessed the deal in a Politico background report as a “double message to Moscow and Beijing.” While Russia continues to wage war in Ukraine, the US would support Kiev’s economic stability – and secure strategically useful raw materials in the process.

Conclusion and outlook

After months of diplomatic frostiness between Washington and Kiev, the signs now point to cooperation once again. If the agreement is signed as planned on April 24, 2025, it would be a milestone for both countries: economically, politically, and symbolically.

Image:
Gage Skidmore, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons