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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3:58
Trump and Zelenskyy’s body language analysed
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.
The Trump administration has stopped the scheduling of new visa interviews for foreign students hoping to study in the US while it prepares to expand social media vetting of applicants.
A US official said on Tuesday the suspension is intended to be temporary and does not apply to applicants who already have visa interviews scheduled.
The official spoke on the condition of anonymity to discuss an internal administration document.
A downturn in enrolment of international students could hurt university budgets in the US.
To make up for cuts in federal research funding, some colleges previously shifted to enrolling more international students, who often pay full tuition.
Now, an internal cable signed by US Secretary of State Marco Rubioand seen by the Associated Press news agency shows how new student visa interviews are being halted as the US State Department plans to issue guidance on expanded social media vetting.
The cable says that “in preparation for an expansion of required social media screening and vetting, consulate sections should not add any additional student or exchange visitor visa appointment capacity” until the guidance is issued.
It also says the halting of new visa interviews is “effective immediately”.
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Asked about the suspension at a briefing on Tuesday, State Department spokesperson Tammy Bruce said the US uses every available resource to vet people applying for visas.
“We will continue to use every tool we can to assess who it is that’s coming here, whether they are students or otherwise,” Ms Bruce said.
The move, first reported by Politico, is the latest in the White House’s crackdown on international students.
Last week, the Trump administration revoked Harvard University’s ability to enrol international students, removing the college from the programme that allows schools to sponsor foreign students for visas.
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Harvard foreign student ban blocked
This spring the Trump administration also revoked the legal status of thousands of international students already in the country, leading some to leave the US out of fear of deportation.
After many students filed successful legal challenges, the administration said it was restoring the students’ legal status.
But the government also expanded the grounds for terminating international students’ legal status going forward.
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Listen to The World with Richard Engel and Yalda Hakim every Wednesday
US President Donald Trump’s previous administration stepped up scrutiny of all visa applicants, introducing reviews of their social media accounts.
The policy remained during President Joe Biden’s administration.
An extended pause in scheduling student visas could lead to delays that may disrupt college, boarding school or exchange students’ plans to enrol in summer and autumn terms.
The Trump administration has ordered embassies to stop scheduling student visa appointments as it prepares to implement strict social media vetting.
US correspondents Martha Kelner and James Matthews discuss why the administration is introducing the drastic measures and what a ban on international students could mean for the US.
Plus, Trump has threatened to pull California’s federal funding over one high school trans athlete.
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A test flight of SpaceX’s Starship rocket has failed for the third time in a row.
It began spinning out of control about 30 minutes after its launch because of fuel leaks – meaning it broke up on re-entry into the Earth’s atmosphere.
“Our chances of making it all the way down to the Indian Ocean are pretty slim,” a SpaceX commentator said during a livestream.
There had been hopes of a successful mission, as the rocket had progressed beyond the point of explosive past failures in January and March.
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0:59
March: SpaceX debris lights up sky after failed launch
But plans to release a series of mock satellites after lift-off were abandoned because its payload door failed to open fully.
The vessel had been mounted atop a Super Heavy booster that was being reused for the first time ever – and while that was meant to make a soft landing, it ended up slamming into the Gulf of Mexico.
SpaceX hopes that Starship will one day be used to ferry people and cargo to Mars, but this latest setback plunges Elon Musk’s ambitions into doubt.
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Failed launches earlier this year disrupted dozens of flights across the US – and the project was grounded for two months while an investigation took place.
Musk was due to update the world on his space exploration ambitions later, in a speech entitled “The Road to Making Life Multiplanetary” – but the event has been delayed without explanation.
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0:32
Jan: Starship explosion sparks travel chaos
Nonetheless, the world’s richest man described the latest test flight as a “big improvement”.
He also vowed to pick up the pace with future launches – and says the next three flights will take place every three to four weeks.
On X, the company added: “With a test like this, success comes from what we learn, and today’s test will help us improve Starship’s reliability.”
NASA needs SpaceX to make huge advances with Starship over the next 12 months as the US agency tries to fulfil an ambition of landing astronauts back on the moon.
Musk had been hoping for success after pledging to start focusing on his many businesses – Tesla, X and SpaceX among them – after attempting to slash government spending while in the Trump administration.
Footage posted on social media showed the billionaire watching the test flight unfold from a control centre, while wearing the T-shirt “Occupy Mars”.