Zelenskyy hails Ukraine-US investment deal as 'truly equal'

US Vice President JD Vance said he did not believe the war in Ukraine was going to end "any time soon."

It is "going to be up to the Russians and Ukrainians now that each side knows what the other's terms for peace are. It's going to be up to them to come to an agreement and stop this brutal, brutal conflict," Vance told Fox News on Thursday.

"It's not going anywhere," Vance added. "It's not going to end any time soon."

DW spoke with Gracelin Baskaran, director of the Project on Critical Minerals Security at the Center for Strategic & International Studies, about the recently signed minerals deal between Ukraine and the US.

Baskaran said the deal that has been signed, in part, is better than previous versions, largely because it doesn't call for Ukraine to pay back military aid provided by the US, but also because Ukraine maintains full authority over its natural resources.

"Ukraine is really getting a deal that puts them on a good long-term development trajectory," she told DW.

While the deal doesn't grant security guarantees, "there is a strong explicit alignment between US and Ukraine on national and economic security." 

Mines can take up to 18 years and $500 million to $1 billion to come online. 

"That's about 4 1/2 presidential administrations in the United States," she pointed out.

Some mines will need longer due to necessary repairs and some reserves lying under Russian-occupied land, meaning that "Peace will ultimately be important because investors have to feel confident in the longevity and the stability of that investment."

Baskaran also highlighted the fact that the deal excludes from its benefits anyway who funds Russia, saying it "takes a pretty strong position in terms of bilateral cooperation."

US President Donald Trump and Secretary of State Marco Rubio have identified Julie Davis to serve as charge d'affaires at the US embassy in Kyiv, State Department spokesperson Tammy Bruce said.

Davis is currently the US ambassador to Cyprus.

Last month, US ambassador to Ukraine Bridget Brink resigned. She was appointed by the Biden administration in 2022.

Brink has been a staunch supporter of US military aid to Ukraine. Her resignation has been expected for some time, especially given the Trump administration's emphasis on rapprochement with Russia and ending the war.

The investment deal marks the start of a new chapter in the Ukraine-US strategic partnership, Ukrainian Foreign Minister Andrii Sybiha said.

"It will ensure Ukraine's long-term recovery and prosperity while also opening up new investment opportunities for the United States and American companies," he wrote on X.

Sybiha also noted that the agreement specifically mentions Ukraine's EU accession process, ensuring a smooth alignment with Ukraine's goal of joining the EU.

He called the deal "an investment in the long-term presence of American strategic business in Ukraine and the forming of the future security architecture."

Ukrainian President Volodymyr Zelenskyy hailed an investment deal with the United States as a "truly equal" and fair agreement, and the first result of his meeting with US President Donald Trump at the Vatican on the sidelines of Pope Francis' funeral.

The agreement "has been signed and will be submitted to the Verkhovna Rada for ratification. And we are interested in having no delays with it," Zelenskyy wrote on X.

He also said the deal paved the way for the modernization of Ukraine's industries.

"The agreement foresees no debt. It stipulates the establishment of a Reconstruction Fund that will invest in Ukraine and generate returns in Ukraine," Zelenskyy added.

The Ukrainian president called the agreement the first result of his Vatican meeting with Trump, and said he was looking forward to the other results of their conversation.

Russian troops have unsuccessfully attempted to establish a bridgehead in the Dnipro estuary southwest of Kherson, the Ukrainian military said.

It said Russian units had reached the mainland near the village of Kisomys to set up positions there, but their advance had been prevented.

The lower reaches of the Dnipro have been considered a river front between Russian and Ukrainian forces for months. There are numerous small islands there that are closely monitored by both sides.

Ukraine has published the full text of the 'investment' deal on its government website. You can find a PDF version of the agreement by clicking here.

Ukrainian President Volodymyr Zelenskyy reiterated his call for pressure on Russia to come to the negotiating table after an overnight drone strike on the southern port city of Odesa killed two people and wounded 15.

"We need further pressure on Russia to force it to be quiet and to negotiate. The more effective the sanctions are, the more incentives Russia will have to end the war," Zelenskyy said on Telegram.

Apart from Odesa, Russia launched a barrage of 170 drones targeting the cities of Kyiv, Sumy, Kropyvnytsky and the Kharkiv and Cherkasy regions, the Ukrainian president said.

He added that Moscow was "ignoring" Washington's call for an unconditional ceasefire.

Ukraine's Foreign Minister Andrii Sybiha said the minerals deal signed with the US serves as "an important milestone" in relations with the United States.

Sybiha made the comment in a post on X in which he referenced a conversation with European Commission Vice President Kaja Kallas.

"I informed my colleague about the signing of the Agreement on the Establishment of a United States–Ukraine Reconstruction Investment Fund. This marks an important milestone in Ukraine–US strategic partnership aimed at strengthening Ukraine’s economy and security," Sybiha’s post read. 

The deal signed on Wednesday in Washington establishes a joint investment fund for Ukraine’s reconstruction as Trump tries to secure a peace agreement in Russia's war in Ukraine.

Russian drones attacked the city of Odesa early on Thursday, killing two and injuring 15 more, Ukrainian emergency services said.

The drones struck infrastructure in the Black Sea port city including buildings, private houses, a supermarket, a school and cars. 

"The enemy attack damaged residential high-rises, private houses, a supermarket, a school, and cars," regional governor Oleh Kiper wrote on the Telegram messaging app. "Fires broke out in some places and are being extinguished by our rescuers."

Ukraine's state railway Ukrzaliznytsia said its tracks were damaged, but passenger trains were still running on schedule. 

"Railway employees are carrying out rapid repair work to ensure that freight trains run to ports without interruption," the company said. 

One of those killed was a railway worker, Ukrzaliznytsia said, adding that he was killed in his home.

Addressing the details of the US-Ukraine agreement, DW Washington correspondent Janelle Dumalaon explained that the deal would give the US preferential access to Ukraine's rare earth minerals by creating a joint investment fund.

"What Ukraine has to do is take 50% of the revenues that it collects from the licensing of new natural resource projects in the country and put them in the fund. As for the Americans, any sort of future assistance that they give to Ukraine counts as a contribution to the fund," Dumalaon said. "The money in the fund would then be used for investing in Ukraine's rare mineral sector, and that revenue is meant to be split up equally between the two countries."

The governance of the project will also be shared equally with three board members from the US and three board members from Ukraine.

Dumalaon said security guarantees sought by Ukrainian President Volodymyr Zelenskyy were not included in the agreement.

"We know that Zelensky did push very hard for security guarantees," she said. "This text does not have any explicit mention of a security guarantee, but there is some encouraging language in there for the Ukrainians included among the objectives. It calls for 'a broader strategic alignment between people's and governments with a tangible demonstration of US support for Ukraine security and integration into global economic frameworks.'"

The agreement signed on Wednesday does, however, include some changes sought by Ukraine.

"Previous iterations of the deal sought to repackage any assistance already given to Ukraine as a debt to be repaid. We know that Zelensky did not go for that," Dumalaon said. "We also know that in previous iterations of the deal Ukraine would have had to give up the revenues from its rare minerals, from its oil and gas, from ports and infrastructure — we were talking something around the area of $500 billion. But according to this current agreement, Ukraine would still be able to maintain control of its natural resources."

There's also nothing in the agreement, she added, blocking Ukraine's path to EU membership, which had been part of previous drafts.

 

Ukraine will retain full ownership of all its mineral resources under the agreement with the United States, Ukrainian Deputy Prime Minister and Economy Minister Yulia Svyrydenko has said.

Svyrydenko, who signed the deal in Washington, said the key provisions of the agreement include that all resources on Ukrainian territory and in territorial waters belong to Ukraine.

"It is the Ukrainian state that determines what and where to extract," she wrote on X. With the fund to be jointly managed by both countries, she added: "Neither side will hold a dominant vote - a reflection of equal partnership between our two nations."

The fund would attract global investment in Ukraine, Svyrydenko explained: "Importantly, the Agreement sends a signal to global partners that long-term cooperation with Ukraine — over decades — is not only possible but reliable."

The US is being given privileged access to valuable, rare minerals in Ukraine in exchange for US support in Kyiv's war against a Russian invasion.

According to Ukrainian Prime Minister Denys Shmyhal, the agreement would establish an equal partnership between the two countries and last for 10 years. Financial contributions to a joint fund would be made in cash, and only new US military aid would count toward the American share.

Assistance provided before the agreement was signed would not be counted. Unlike an earlier draft, the deal would not conflict with Ukraine's path toward European Union membership — a key provision for Kyiv.

US President Donald Trump has pushed for a deal for months that he says would repay the US for the military and financial support it has provided Ukraine. Talks, however, stalled after a meeting in the Oval Office when Trump and US Vice President JD Vance berated Ukrainian President Volodymyr Zelenskyy for a perceived lack of gratitude on the part of the Ukrainian leader.

The US has sought access to more than 20 raw materials, like titanium, uranium, lithium, graphite and manganese, seen as critical to its interests, including some non-minerals such as oil and natural gas.

Ukrainian First Deputy Prime Minister Yulia Svyrydenko she the agreement would allow both countries to expand their economic potential and also contribute to Ukraine's security.

"Together with the United States, we are creating the Fund that will attract global investment into our country," she wrote on X.

"Its implementation allows both countries to expand their economic potential through equal cooperation and investment," wrote Svyrydenko, who also serves as the economy minister. "The United States will contribute to the fund. In addition to direct financial contributions, it may also provide NEW assistance — for example air defense systems for Ukraine."

US and Ukrainian officials have signed a deal in Washington over access to Ukrainian natural resources, the US Treasury Department announced.

Officials agreed to establish a US-Ukraine reconstruction investment fund, the Treasury said. 

"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," US Secretary of the Treasury Scott Bessent  said in a statement. "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."

The agreement will give the United States access to investment projects to develop Ukrainian gas, mineral and other natural resources. 

The European Union has a "plan B" regarding keeping economic pressure on Russia in case the US reaches a deal with Moscowalone, the bloc's top foreign policy diplomat said.

"We see signs that they are contemplating whether they should leave Ukraine and not try to get a deal with the Russians because it's hard," Kaja Kallas told the UK's Financial Times newspaper.

"There is also a plan B, but we have to work for Plan A," Kallas said.

She added that the EU is in conversation with the US and other international partners to make sure the sanctions on Russia remain in place.