The United States and Ukraine have signed a high-stakes agreement that could reshape American involvement in the region. Instead of providing free aid, the U.S. will now back Ukraine with investments tied directly to the country’s vast mineral and energy resources.
A New Strategy: Trade, Not Just Aid
After months of negotiations, the Trump administration finalized what is now being called the “Minerals Deal.” The agreement grants the U.S. preferential, though not exclusive, rights to Ukraine’s rare earth minerals, oil, gas, and related technologies.
This deal introduces a new structure: any future U.S. military aid — whether weapons, ammunition, or training — will be considered a financial contribution to the newly created U.S.-Ukraine Reconstruction Investment Fund. Ukraine is expected to match that investment, not with cash, but through the value of its natural resources.
This means the U.S. is no longer offering free support. The relationship becomes transactional, more like a business partnership than traditional foreign aid.
According to Maxim Timchenko, CEO of Ukraine’s largest private energy company DTEK, the agreement provides the framework to accelerate private investment into Ukraine’s energy sector, which holds some of the largest untapped reserves in Europe.
Who’s Involved?
Donald Trump has backed this “win-win” approach, aligning American business interests with Ukraine’s economic recovery. U.S. Treasury Secretary Scott Bessent and Ukraine’s Minister of Economy Yulia Svyrydenko officially signed the agreement.
Timchenko had traveled to Washington weeks before the signing to meet with administration officials and promote Ukraine’s energy potential. He emphasized that real interest was shown in exploring Ukraine’s oil and gas reserves, especially in the western regions. He also noted that DTEK already collaborates with major U.S. companies such as GE Vernova, Fluence, Honeywell, and Venture Global, and said they are well-positioned to expand private investment with the support of U.S. agencies like the U.S. International Development Finance Corporation and EXIM bank.
Timchenko said he believes the private sector offers the most effective mechanism to bring this agreement to life by providing skills, capital, and on-the-ground experience.
Why It Matters for Ukraine
Currently, most of Ukraine’s energy infrastructure is located in the eastern part of the country—areas heavily affected by Russian aggression since the war began three years ago. Developing energy projects in the western part of Ukraine not only generates revenue but also shifts critical infrastructure away from active conflict zones.
The new deal is intended to boost Ukraine’s recovery and increase international investor confidence. According to Timchenko, it sends a strong message that Ukraine is open for business and ready for long-term investment.
What About Russia?
Some observers see this deal as a shift in U.S. positioning. Sergei Markov, a former advisor to Russian President Vladimir Putin, told Reuters that the deal signals the U.S. is beginning to see itself as a co-owner of Ukraine. As a result, the U.S. will likely continue to take positions that align closely with Ukrainian interests.
Scott Bessent described the agreement as a “royal flush” for Kyiv, referencing Trump’s previous statements that Ukraine lacked the leverage to negotiate with Putin. Bessent also said this agreement demonstrates unity between the American and Ukrainian people and shows Russian leadership there is no daylight between the two nations’ goals. He argued that if Ukrainians don’t prosper, neither do Americans, and now both sides are economically aligned.
Will This Stop Putin?
It remains to be seen whether this deal will deter further Russian aggression or influence peace talks. President Trump has suggested that the presence of U.S. companies in Ukraine will serve as a deterrent to Putin, but President Zelenskyy has pointed out that American firms were already operating in Ukraine when Russia launched its full-scale invasion in February 2022.
Nevertheless, the agreement gives Trump additional leverage in negotiations with Russia, according to Bessent. He did not elaborate on specific tactics but emphasized that aligning American financial interests with Ukraine’s recovery strengthens Trump’s bargaining position.
Timchenko said he believes the Trump administration understands that supporting a strong and independent Ukraine serves U.S. interests and can drive American prosperity. He added that the United States has made a smart investment and will want to protect it.
