U.S. Treasury Secretary Scott Bessent on the ‘win-win’ minerals deal with Ukraine, pushing for a trade deal with China and tariff ‘clarity,’ President Donald Trump’s tax cuts and other top legislative topics.
After months of often hard-fought negotiations between the Trump administration and its Ukrainian counterparts, Washington and Kyiv have signed what has been dubbed the “Minerals Deal” and opened the war-torn nation to U.S. investment in not only rare earth minerals but other energy sectors like oil and gas and “related technology.”
On Wednesday, Treasury Secretary Scott Bessent and Ukrainian Minister of the Economy Yulia Svyrydenko signed the U.S.-Ukraine Reconstruction Investment Fund, which means both Washington and Kyiv will invest in new energy investment projects in Ukraine to generate revenue for both nations.
The agreement, which gives the U.S. preferential but not exclusive rights to Ukrainian mineral extraction, says any future U.S. military aid, which includes weapons, ammunition or training, will be considered a contribution to the investment fund.
Treasury Secretary Scott Bessent and President Donald Trump (Anna Moneymaker/Getty Images)
This appears to mean that Ukraine would need to match that investment figure with resource wealth, essentially ensuring that the U.S. is no longer donating or gifting aid to Ukraine as it is then paid for by natural resource revenues.
While the deal did not provide Ukraine with specific security guarantees for which Ukrainian President Volodymyr Zelenskyy originally sought, it opens Ukraine to greater investment, says Maxim Timchenko, CEO of Ukraine’s largest private energy company, DTEK.
“The United States-Ukraine Reconstruction Investment Fund is a significant step forward in the country’s recovery from war,” Timchenko told FOX Business. “It sends a strong signal to the world that Ukraine is open for business.
“This agreement provides the framework to accelerate private investment into an energy sector with some of the largest untapped reserves in Europe,” he added.
Timchenko, who was confident a deal between the nations could be reached, traveled to D.C. weeks ahead of the agreement to engage in discussions with top administration officials about the potential Ukraine holds when it comes to untapped resources, in particular oil and gas reserves in western Ukraine.
Smoke rises from an oil refinery after an attack outside the city of Lysychansk in the eastern Ukrainian region of Donbas on May 22, 2022. (Aris Messinis/AFP via Getty Images)
The energy executive confirmed that “real interest” was expressed in tapping into these resources, and as DTEK already works with major U.S. companies like GE Vernova, Fluence, Honeywell and Venture Global in commodities ranging from liquefied natural gas (LNG) to grid-scale battery storage, he believes they are well positioned to expand private investment in Ukraine by utilizing American agencies like the U.S. International Development Finance Corporation and EXIM bank.
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“I believe that, ultimately, the private sector offers the most effective mechanism to bring this agreement to life by providing skills, capital and on-the-ground experience,” Timchenko said.
Expanding untapped resources in western Ukraine is not only revenue-driven for Kyiv.
Much of Ukraine’s energy sector is in eastern Ukraine and runs right along the front lines to where Russian forces have advanced, and have routinely targeted, since the war began three years ago.
Diverting resources farther away from Russia’s border, both illegally occupied and internationally recognized, would add another layer of protection from Moscow.
This map of Ukrainian energy infrastructure depicts publicly accessible locations of Ukrainian energy locations. (Obtained by FOX Business)
President Donald Trump has suggested that having American companies in and operating out of Ukraine also provides Kyiv with some protections against Russian President Vladimir Putin, though Zelenskyy has pointed out there were American companies operating out of Ukraine when Russia invaded in February 2022.
It remains unclear whether a U.S. deal with Ukraine on this level will serve as a deterrent to Russia or how it will affect U.S. attempts to end the three-year-long war through negotiations.
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Though Sergei Markov, a former advisor to Putin, told Reuters on Thursday that the deal suggests “The U.S. is beginning to see itself as a sort of co-owner of Ukraine.
“Therefore, it will take a position that it considers pro-Ukrainian,” he argued.
Similarly, Bessent, while speaking with FOX Business’ Maria Bartiromo on Thursday, argued the agreement with Ukraine just dealt Kyiv a “royal flush” in direct reference to Trump’s repeated claims that Zelenskyy didn’t have the cards to negotiate with Putin.
“[It showed] Russian leadership that there is no daylight between the Ukrainian people and the American people, between our goals,” Bessent said. “The American people don’t make any money if Ukrainians don’t prosper. So now we are fully aligned in terms of economics.”
Firefighters extinguish a fire at an oil depot after a Russian kamikaze drone strike in Kharkiv, Ukraine, on Feb. 10, 2024. (Viacheslav Mavrychev/Suspilne Ukraine/JSC “UA:PBC”/Global Images Ukraine via Getty Images)
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Bessent further argued it gives Trump a stronger bargaining chip when it comes to dealing with Putin, though he did not detail how.
Timchenko said he believes the Trump administration “recognizes that a strong and free Ukraine is very much in America’s own self-interest, and can be a driver of U.S. prosperity.”
“I believe the United States has made a smart investment and will want to protect it,” he added.
