US, Ukraine reach deal on economic cooperation
Washington: The US and Ukraine on Wednesday announced a deal that will give America access to Ukrainian rare earth reserves and demonstrate the Trump administration’s commitment to the “peace process centered on a free, sovereign, and prosperous Ukraine over the long term”.
The deal came after weeks of negotiations and last-minute niggles.
“As the President has said, the United States is committed to helping facilitate the end of this cruel and senseless war,” Scott Bessent, the US Treasury Secretary, said in a statement announcing the agreement that sets up the US-Ukraine Reconstruction Investment Fund.
“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. President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides’ commitment to lasting peace and prosperity in Ukraine. And to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine.”
The US announcement said that in recognition of the significant financial and material support provided by the US to Ukraine since “Russia’s full-scale invasion this economic partnership positions our two countries to work collaboratively and invest together to ensure that our mutual assets, talents, and capabilities can accelerate Ukraine’s economic recovery”.
US President Donald Trump has put the value of American support to Ukraine since the invasion at $300 billion and argued that the US got nothing back in return, unlike Europe, whose help was tied to conditions.
So, Trump had argued that the US wants access to Ukraine’s rare earth reserves in return and he has said that US presence in Ukraine in execution of this deal will bring Ukraine long-term security guarantees from future Russian invasion that President Volodymyr Zelensky has sought as part of a permanent ceasefire that the US is trying to broker.
The US has said it will decide soon whether or not to stay invested in the peace process because of frustrating push back from both Ukraine and Russia.