By Jane Lytvynenko and Alan Cullison

The minerals deal signed by Ukraine and the U.S. is expected to boost relations between the two allies as they plan joint investments in critical resources.

Senior Treasury officials declined Thursday to say how long it could take for U.S. companies to mine the rare earth minerals that President Trump has touted as a centerpiece of the deal. Some of those minerals are near the front lines in Ukraine, which is fighting to repel Russia. The officials said oil and gas projects in Ukraine were likely the first to come to fruition because they would be easier to execute.

But a web of bureaucratic challenges remain. The agreement seeks to establish a fund into which both the U.S. and Ukraine invest and which is meant to benefit from Ukraine's economic recovery. Before any money can start to flow, the deal needs to be ratified by Ukraine's parliament and the fund itself must be created. Only then can Ukraine begin attracting investors into its wealth of natural resources and minerals.

The signing is nonetheless a diplomatic victory for Ukraine after a period of troubled relations with its most important benefactor. Ukraine relies on the U.S. for weaponry and intelligence-sharing it could scarcely do without. The Trump administration has been ramping up pressure to end the war. Ukraine has sought to present itself as a cooperative partner.

For Trump, the deal is a victory because any military aid that Washington gives to Ukraine can count as a contribution to the fund Ukraine is supposed to match. Trump could say Ukraine is paying for U.S. aid, rather than benefiting from U.S. largess.

"This deal can empower people inside the administration who want to support Ukraine," said Eric Green, a former senior national security adviser for Russia under the Biden administration. "They can appeal to the transactional crowd in the White House."

Kyiv agreed after being pressured by the Trump administration to sign. Now it is Russia that looks obstructive, said Tymofiy Mylovanov, president of the Kyiv School of Economics and Ukraine's former economic development minister. "It's a harsh contrast between Russia, which is unconstructive and can't accomplish anything with the U.S., and Ukraine, which was able to sign a deal," he said.

Trump has appeared increasingly annoyed by Russia's resistance to a cease-fire deal and seems inclined to back out of peacemaking efforts between Russia and Ukraine, said Green, a nonresident scholar at the Carnegie Endowment for International Peace. After the minerals agreement, Trump might continue intelligence sharing with Kyiv and allow some commercial arms sales and not hinder European direct aid to Ukraine, he said.

In Moscow, officials denounced the minerals deal as a sign the so-called deep state in Washington could hijack Trump's peacemaking agenda.

"Trump's ratings are down, the 'deep state' is fiercely resisting him," wrote Dmitry Medvedev, the former Russian president and present deputy head of Russia's Security Council in a post on social media. "May is off to a stormy start. And by no means peaceful. Victory Day is still to come."

Each side made concessions during tetchy negotiations. The agreement doesn't explicitly provide security guarantees for Ukraine -- something Kyiv has sought because it fears future aggression from Russia.

The fund also wouldn't go toward repaying past military aid from the U.S., a clause Washington included in past versions of the deal.

Ukrainian officials touted the deal as helpful to Ukraine's long-term defense. Ukrainian Deputy Prime Minister Yulia Svyrydenko, who flew to Washington for the signing Wednesday, echoed the position of Trump officials that U.S. investment was also a guarantee of sorts.

"Security guarantees, it's not only antimissile systems and weapon delivery," she said. "It's also U.S. businesses that are working on the ground. And this mechanism is to unlock this opportunity for U.S. companies."

U.S. officials acknowledged businesses might be hesitant to invest in Ukraine. Any company working in Ukraine faces a threat of daily Russian bombardment from attack drones and ballistic missiles that have targeted Ukrainian cities.

But the payoff could be big if a peace deal is signed. Ukraine contains 20 of 50 raw minerals considered critical, including titanium, lithium and uranium.

Write to Alan Cullison at alan.cullison@wsj.com

(END) Dow Jones Newswires

May 01, 2025 20:24 ET (00:24 GMT)

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