US says minerals deal will strengthen Trump in talks with Russia

KYIV/WASHINGTON (Reuters) - Kyiv and Washington on Thursday hailed a deal giving the United States preferential access to new Ukrainian minerals as a milestone which a top U.S. official said would allow President Donald Trump to negotiate with Russia on a stronger basis.

The Kremlin was silent on Wednesday's agreement, but Russian former President Dmitry Medvedev said it meant Trump had "broken the Kyiv regime" because Ukraine would have to pay for U.S. military aid with mineral resources.

The accord, which was signed in Washington and heavily promoted by Trump, establishes a joint investment fund for Ukraine's reconstruction as the U.S. president tries to secure a peace settlement in Russia's war in Ukraine.

The agreement also gives the U.S. preferential access to new Ukrainian minerals projects. It is central to Ukraine's efforts to mend ties with Trump and the White House, which frayed after he took office in January, but is yet to be considered by the Ukrainian parliament.

The deal will show the "Russian leadership that there is no daylight between the Ukrainian people and the American people, between our goals," U.S. Treasury Secretary Scott Bessent told Fox Business Network in an interview.

"And again, I think this is a strong signal to theRussian leadership, and it gives President Trump the ability tonow negotiate with Russia on even a stronger basis," he said.

His remarks appeared to send a signal to Russia that Washington remains aligned with Kyiv despite question marks over its commitment to its ally since Trump's return to the White House in January upended U.S. diplomacy.

Kyiv has been highly dependent on U.S. military supplies throughout the war and says Russia has intensified attacks on Ukraine since the U.S. stepped up efforts to secure a peace settlement.

Washington has been signalling its frustration with the failure of Moscow and Kyiv to agree on terms, and Trump has shown signs of disappointment with Russian President Vladimir Putin for not moving faster towards peace.

Trump said on Tuesday he thought Putin wants to stop the war and added: "If it weren't for me, I think he'd want to take over the whole country."

MILESTONE

Ukrainian Foreign Minister Andrii Syhiba said the deal marked "an important milestone in (the) Ukraine–U.S. strategic partnership aimed at strengthening Ukraine’s economy and security."

He also briefed the European Union's top diplomat, Kaja Kallas, on the deal. EU member states have said they will step up defence spending in response to criticism by Trump of their contribution to Ukraine's war effort.

Medvedev, who is now a senior security official in Russia, suggested Ukraine had been forced into the agreement.

"Trump has broken the Kyiv regime to the point where they will have to pay for U.S. aid with mineral resources," he wrote on Telegram. "Now they (Ukrainians) will have to pay for military supplies with the national wealth of a disappearing country."

Ukraine's international debt rallied more than 2 cents on Thursday after the signing of the minerals deal, which financial analysis said had come with better terms for Ukraine than they had originally thought likely.

Ukraine is rich in natural resources including rare earth metals which are used in consumer electronics, electric vehicles and military applications, among others. Global rare-earth mining is currently dominated by China, which is locked in a trade war with the U.S. after Trump's sharp tariff increases.

Ukraine also has large reserves of iron, uranium and natural gas.

Ukrainian First Deputy Prime Minister Yulia Svyrydenko, who signed the agreement, said Ukraine has no debt obligations to the United States under the agreement, a key point in the lengthy negotiations between the two countries.

The deal also, she said, complied with Ukraine's constitution and Ukraine's campaign to join the European Union, key elements in Ukraine's negotiating position.

The agreement did not, however, provide any concrete U.S. security guarantees for Ukraine, one of its initial goals.

Prime Minister Denys Shmyhal was due to present it to parliamentary factions later on Thursday and some lawmakers want him to also present it at a parliamentary session on Friday. A vote on whether to approve it is not expected imminently.

Some members of parliament have welcomed the deal. Some others have criticised some of its terms and complained that the chamber was not properly consulted and that they had not yet seen the text of the agreement.

(Reporting by Doina Chiacu, Susan Heavey and David Lawder in the United States, Anastasiia Malenko in Kyiv, Tom Balmforth and Karin Strohecker in London, and Yuliia Dysa, Writing by Timothy Heritage, Editing by Philippa Fletcher)