The US Treasury has announced it has agreed to establish an American-Ukrainian reconstruction investment fund.
For Ukraine, the economic deal was seen as possibly key to ensuring its access to future US military aid in its war against Russia.
President Trump had previously called for Kyiv to compensate Washington for billions of dollars in assistance to help repel the Kremlin’s forces.
A senior Ukrainian official said on Wednesday the US will make “direct financial contributions” to the fund and “may also provide new assistance” such as air defence systems for Ukraine.
In return the US is set to get preferential access any new deals concerning Ukraine’s mineral resources.
Image: President Trump and President Zelenskyy met before the Pope’s funeral last weekend. Pic: Ukrainian Presidential Press Office via AP
The US Treasury said “in recognition of the significant financial and material support” the US has provided to the “defence of Ukraine… this economic partnership positions our two countries to work collaboratively and invest together to… accelerate Ukraine’s economic recovery”.
US treasury secretary Scott Bessent 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.”
He also said “this partnership allows the US to invest alongside Ukraine, to unlock Ukraine’s growth assets, mobilise American talent, capital and governance standards that will improve Ukraine’s investment climate and accelerate Ukraine’s economic recovery”.
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Donald Trump indicated in February he wanted access to Ukraine’s rare earth materials, describing it as reimbursement for the billions of dollars in aid the US has given to Kyiv.
But talks stalled after a heated Oval Office meeting between him and Ukraine’s President Volodymyr Zelenskyy, and reaching an agreement since then has proven difficult amid strained relations between Washington and Kyiv.
Trump is closer to ending Ukraine war than ever before
They are calling this a “reconstruction investment fund” but it gives the US access to things like graphite, aluminium, oil and gas.
The White House has confirmed this is indeed the oft-referenced “minerals deal”, and it will pay dividends in various ways.
Economically it allows the US to say they are clawing back the billions of dollars it has offered in military aid to Ukraine.
Politically, by having an investment on the ground, it allows Donald Trump to claim he’s giving Volodymyr Zelenskyy the security guarantees he’s sought for so long.
It is the latest chapter in a remarkable story.
The jaw-dropping showdown between Mr Trump and Mr Zelenskyy in the Oval Office at the end of February, when the US was seemingly suggesting Ukraine was somehow responsible for the Russian invasion, redefined old allegiances in real time before our very eyes, to the shock of other world leaders.
Then last weekend, we saw the two men again seated together just feet apart at St Peter’s Basilica in Rome at the funeral of Pope Francis, closing the gap both literally and politically.
Mr Trump vowed to end the war in Ukraine on his first day in office. On his 101st day, he’s closer to doing that than he ever has been before.
Why is US interested in Ukraine’s raw materials?
The US is seeking access to over 20 raw materials seen as strategically critical to its interests, including some non-minerals such as oil and natural gas.
Among them are Ukraine’s deposits of titanium, which is used for making aircraft wings and other aerospace manufacturing, and uranium, that is used for nuclear power, medical equipment and weapons.
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Ukraine also has lithium, graphite and manganese, which are used in electric vehicle batteries.
On Wednesday, Ukraine’s first deputy prime minister Yulia Svyrydenko said she had signed the agreement in Washington DC to create the investment fund.
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She wrote on X: “Together with the United States, we are creating the fund that will attract global investment into our country.
“Its implementation allows both countries to expand their economic potential through equal cooperation and investment.
“The United States will contribute to the fund. In addition to direct financial contributions, it may also provide new assistance – for example air defence systems for Ukraine.”
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The announcement comes as the Trump administration is pushing to stop the war, which erupted in February 2022 when Russia launched a full-scale invasion.
Russian President Vladimir Putin backs calls for a ceasefire before peace negotiations, “but before it’s done, it’s necessary to answer a few questions and sort out a few nuances,” Kremlin spokesman Dmitry Peskov has said.
Mr Putin is also ready for direct talks with Ukraine without preconditions to seek a peace deal, he added.
A case of the flesh-eating screwworm parasite has been detected in a person in the United States for the first time.
The parasitic flies eat cattle and other warm-blooded animals alive, with an outbreak beginning in Central America and southern Mexico late last year.
It is ultimately fatal if left untreated.
The case in the US was identified in a person from Maryland who had travelled from Guatemala.
Beth Thompson, South Dakota’s state veterinarian, told Reuters on Sunday that she was notified of the case within the last week.
A Maryland state government official also confirmed the case.
The person was treated and prevention measures were implemented, Reuters reports.
The Centres for Disease Control and Prevention (CDC) and the Maryland Department of Health did not immediately respond to requests for comment.
What is screwworm?
The female screwworm fly lays eggs in the wounds of warm-blooded animals and once hatched, hundreds of screwworm larvae use their sharp mouths to burrow through living flesh.
It can be devastating in cattle and wildlife, and has also been known to infect humans.
Treatment is onerous, and involves removing hundreds of larvae and thoroughly disinfecting wounds. They are largely survivable if treated early enough.
The confirmed case is likely to rattle the beef and cattle futures market, which has seen record-high prices because of tight supplies.
The US typically imports more than a million cattle from Mexico each year to process into beef. The screwworm outbreak could cost Texas – the biggest cattle-producing state – $1.8bn (£1.3bn) in livestock deaths, labour costs and medication expenses.
Image: A view shows a calf after being sprayed with a disinfectant spray to prevent screwworm. Pic: Reuters
The United States Department of Agriculture (USDA) has set traps and sent mounted officers along the border, but it has faced criticism from some cattle producers and market analysts for not acting faster to pursue increased fly production via a sterile fly facility.
What is a sterile fly facility?
The case also comes just one week after the US agriculture secretary, Brooke Rollins, travelled to Texas to announce plans to build a sterile fly facility there in a bid to combat the pest. Ms Rollins had pledged repeatedly to keep screwworm out of the country.
A sterile fly facility produces a large number of male flies and sterilises them – these males are then released to mate with wild female insects, which collapses the wild population over time. This method eradicated screwworm from the US in the 1960s.
Mexico has also taken efforts to limit the spread of the pest, which can kill livestock within weeks if not treated. It had started to build a $51m sterile fly production facility.
The USDA has previously said 500 million flies would need to be released weekly to push the fly back to the Darien Gap, the stretch of rainforest between Panama and Colombia.
The troops are authorised to use their weapons for self-protection.
A White House official told NBC News that despite being armed, as of Saturday night, the National Guard troops in DC are not making arrests, and will continue to work on protecting federal assets.
The troops were largely deployed from outside the state and were framed by President Trump as a concerted effort to tackle crime and homelessness in the nation’s capital.
Such deployments are not common, and are typically used in response natural disasters or civil unrest.
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Democrats have bashed the deployment as partisan in nature, accusing Mr Trump of trying to exert his presidential authority through scare tactics and said his primary targets have been cities with black leadership.
Image: Armed members of the South Carolina National Guard patrol outside of Union Station. Pic: AP
Pentagon plans to deploy US army to Chicago
Yesterday it was reported that the Pentagon was drafting plans to deploy the US army in Chicago, the largest city in the state.
The governor of Illinois then accused Mr Trump of “attempting to manufacture a crisis” and “abusing his power to distract from the pain he is causing working families”.
Officials familiar with the proposals told the Washington Post that several options were being weighed up by the US defence department, including mobilising thousands of National Guard troops in Chicago as early as September.
Mr Trump had told reporters on Friday that “Chicago is a mess”, before attacking the city’s mayor, Brandon Johnson, and hinting “we’ll straighten that one out probably next”.
The governor of Illinois has accused Donald Trump of “attempting to manufacture a crisis” over reports the US president was considering deploying the military in the state.
US newspaper The Washington Post reported on Saturday that the Pentagon was drafting plans to deploy the US army in Chicago, the state capital.
It comes as part of Mr Trump’s crackdown on crime, homelessness, and illegal immigration in mainly Democrat-run cities. He recently deployed the National Guard in Washington DC.
In a statement responding to the report, governor JB Pritzker said Illinoishad “received no requests or outreach from the federal government asking if we need assistance, and we have made no requests for federal intervention”.
He added: “The safety of the people of Illinois is always my top priority.
“There is no emergency that warrants the President of the United States federalising the Illinois National Guard, deploying the National Guard from other states, or sending active duty military within our own borders.”
The governor then said: “Donald Trump is attempting to manufacture a crisis, politicise Americans who serve in uniform, and continue abusing his power to distract from the pain he is causing working families.
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“We will continue to follow the law, stand up for the sovereignty of our state, and protect the people of Illinois.”
Officials familiar with the proposals told the Post that several options were being weighed up by the US defence department, including mobilising thousands of National Guard troops in Chicago as early as September.
The Pentagon said it would not comment on planned operations, adding: “The department is a planning organisation and is continuously working with other agency partners on plans to protect federal assets and personnel.”
Image: People protest against President Donald Trump’s use of federal law enforcement and National Guard troops in Washington DC. Pic: AP
Mr Trump, however, told reporters on Friday that “Chicago is a mess,” before attacking the city’s mayor Brandon Johnson and hinting “we’ll straighten that one out probably next”.
Mr Johnson has not yet commented on Saturday’s reports, but said on Friday that the president’s approach to tackling crime has been “uncoordinated, uncalled for and unsound”.
“There are many things the federal government could do to help us reduce crime and violence in Chicago, but sending in the military is not one of them,” he added.
It comes after around 800 National Guard troops were deployed in Washington DC earlier this month, despite the US capital’s mayor revealing crime in the capital was at its “lowest level in 30 years”.
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According to preliminary figures from Washington DC’s Metropolitan Police, violent crime is down 26% in 2025 – after dropping 35% in 2024 compared with 2023.
In June Mr Trump ordered 700 US Army marines and 4,000 National Guard troops to Los Angeles in California, during protests over mass immigration raids.