Trump and Zelensky at the White House. Photo: Chen Mengtong/China News Service/VCG via Getty

After some last-minute hiccups, the U.S. and Ukraine signed a closely watched minerals deal on Wednesday, the U.S. Treasury Department said.

Why it matters: The agreement envisions a lasting economic partnership between the U.S. and Ukraine and gives the U.S. preferential access to Ukraine’s rare earth minerals, oil and gas. But reaching the final agreement has been a contentious weeks-long process.

• It “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,” Treasury Secretary Scott Bessent said in a statement.

Driving the news: Bessent and Ukrainian Deputy Prime Minister Yulia Svyrydenko signed the deal Wednesday in Washington.

• “Both the United States and the Government of Ukraine look forward to quickly operationalizing this historic economic partnership for both the Ukrainian and American people,” Bessent said.
• The agreement established the United States-Ukraine Reconstruction Investment Fund, the Treasury Department said.

The big picture: U.S. officials contend the agreement will increase U.S. involvement in Ukraine’s economy and serve as a partial security guarantee for Ukraine because the U.S. will want to secure its investments.

Zoom in: The government-to-government agreement will establish a joint fund, with each country contributing 50% of the financing and future U.S. military assistance to Ukraine counting as a contribution to the fund.

• The fund will be governed jointly and will have three U.S. members and three Ukrainian members on its board.
• The money in the fund will be used for investments in the extraction of Ukraine’s rare earth minerals, oil and gas. The revenue will be split 50/50.
• Ukraine’s deputy economy minister Taras Kachka told Axios the agreement gives the U.S. preferential access to investments in any operator that extracts rare earths in Ukraine and the first right of refusal for such investments.

Key point: The agreement will be forward-looking, Kachka told Axios. It’s not aimed at repaying for U.S. support for Ukraine — as Trump had previously described the purpose — but on giving the U.S. the opportunity to profit from its defense of Ukraine through investments.

What they’re saying: “This agreement is a win-win and it is written in friendly language. It is about investments, investments and investments,” Kachka said.

• “Its implementation allows both countries to expand their economic potential through equal cooperation and investment,” Svyrydenko posted on X.
• “We expect that for the first 10 years, Fund profits and revenues will not be distributed, but instead reinvested into Ukraine — into new projects or reconstruction. These terms will be subject to further discussion.
• It is an Agreement that reaffirms the United States of America commitment to Ukraine’s security, recovery, and reconstruction,” Svyrydenko said.

Flashback: The minerals deal was due to be signed on Feb. 28 until President Volodymyr Zelensky’s visit to Washington exploded into acrimony.

• Talks were frozen for several weeks, and then restarted almost from scratch with a new text.
• Wednesday’s signing ceremony was also temporarily thrown into uncertainty after Ukraine declined to sign side agreements the U.S. presented along with the main deal.

Editor’s note: This story has been updated to reflect that the deal was signed on Wednesday.