The U.S. and Ukraine have reached a deal that provides the former access to natural resources in Kyiv. This deal, brokered by President Donald Trump, gives the U.S. preferential access to these resources, which include rare earths, critical minerals, oil, gas, and more.
The agreement between the U.S. and Ukraine includes an investment in the economic recovery of the country from its war with Russia. It includes a 50-50 split on resources in Kyiv, with Ukraine being allowed to determine when and what will be extracted from the location.
President Trump has sought an end to the war between Russia and Ukraine since taking office earlier this year. That included a push for a mineral deal with the country to pay the U.S. back for its support rendered to Ukraine. This minerals agreement covers that, meaning Ukraine won’t pay back the more than $100 billion in aid given to it by the U.S.
How Will Russia React?
With America and Ukraine now allied through this deal, Russia could face more pushback in its war with Ukraine. This could also lead to negotiations between President Trump and Russian President Vladimir Putin. That would align with Trump’s call for peace between the two nations.
Russian Security Council Deputy Chairman Dmitry Medvedev spoke out about the U.S deal with Ukraine on Telegram. He said “Trump has finally broken the Kiev regime into paying for American aid with minerals. Now military supplies will have to be paid for with the national wealth of a disappearing country.”
What Does This Mean for Stocks?
With this deal, Ukraine could see an influx of U.S. investors that target the development and mining of resources in Kyiv. Companies that could be interested in developing Kyiv include those in the oil and gas sectors, as well as lithium mining operators, and other rare earths miners. Aerospace and defense companies could also get a boost if the war between the Ukraine and Russia escalates and the U.S. offers additional support.
