U S, Ukraine sign natural resources deal amid war recovery efforts

New Delhi, May 1: After months of tense backroom negotiations, the United States and Ukraine have signed a wide-reaching agreement granting Washington joint access to some of Ukraine’s valuable natural resources. The deal, long anticipated in diplomatic circles, establishes a “Reconstruction Investment Fund” that Kyiv hopes will help secure long-term U.S. support. International media reported seven takeaways from this significant accord:

No Ukrainian repayment for U.S. aid

Despite former President Donald Trump’s insistence that Ukraine should repay the estimated $350 billion in U.S. aid delivered during the war, the final agreement does not include such an obligation. Prime Minister Denys Shmyhal confirmed that the deal does not impose any debt burden on Kyiv. Trump, however, has framed the agreement as a win for the U.S., saying it will gain "much more in theory" than what was spent under President Biden.

Harsher U.S. tone toward Moscow

The language accompanying the deal marks a shift in tone from the Trump administration, which has typically taken a more cautious rhetorical stance on Russia. A U.S. Treasury statement condemned Russia’s “full-scale invasion” and vowed to block any individual or entity that backed Moscow’s war effort from profiting from Ukraine’s reconstruction. The toughened stance will be welcomed in Kyiv, which has called for more assertive U.S. pressure on Russia during recent ceasefire talks.

Oil and Gas projects included

While the agreement is often discussed in terms of Ukraine’s mineral wealth, it also encompasses oil and gas ventures, along with related infrastructure projects.

Although resource ownership will remain with Ukraine, the U.S. is granted joint access, a shift from earlier drafts, which focused solely on mining. The inclusion of hydrocarbons is being seen as a strategic concession by Kyiv.

EU accession goals unaffected

Some Ukrainian officials were initially concerned that giving U.S. investors preferential treatment could jeopardise the country’s path toward European Union membership, particularly given Ukraine’s existing raw materials partnership with Brussels. However, the agreement states that it will not conflict with Ukraine’s EU accession objectives. It also includes provisions for revisiting terms if new obligations arise from EU membership negotiations. Washington further commits to supporting technology and investment transfers, including those from European partners.

Profits to be reinvested in Ukraine for a decade

For the first 10 years, profits generated through the investment fund will be fully reinvested in Ukraine’s economy. The measure is aimed at rebuilding war-ravaged regions and spurring domestic industry. U.S. Treasury Secretary Scott Bessent described the arrangement as a “signal to the American people” that the U.S. will have a stake in Ukraine’s recovery and eventual prosperity.

Renewed military aid Possible

Although the agreement is primarily economic, Ukrainian Deputy Prime Minister Yulia Svyrydenko, who signed the deal in Washington, indicated that future military assistance, including air defence systems, remains part of the conversation.

This could shift Trump’s previous posture, which leaned toward scaling back support. Yet no explicit security guarantees are embedded in the agreement, and the U.S. retains the right to walk away.

While the deal ties the U.S. economically to Ukraine’s recovery, the absence of binding military commitments leaves room for uncertainty. Trump's reluctance to pledge long-term security support continues to worry Ukrainian and European officials.  Ukraine’s Foreign Minister Andriy Sybiha hailed the agreement as a “milestone” in bilateral relations. In a social media post, he emphasised the deal’s importance in strengthening both economic and security ties. He also acknowledged ongoing EU cooperation, noting conversations with European foreign policy chief Kaja Kallas and expressing gratitude for Europe’s “steadfast support.”

Though the Kremlin has yet to respond, the pact will likely provoke a reaction in Moscow, given its implications for Ukraine’s post-war recovery and strategic realignment. For Ukraine, the challenge now is ensuring that economic promises evolve into sustained international commitment, at a time when battlefield and diplomatic uncertainties still loom large.