The writer is US Treasury secretary
While much has been reported about the economic partnership that President Donald Trump has proposed to his Ukrainian counterpart, Volodymyr Zelenskyy, there is a great deal about it that has been misrepresented or is just plain wrong. So, I welcome this opportunity to make clear how this partnership benefits both our nations.
Without the support of the United States and the American people, Ukraine’s position today would be perilous at best. The support of the US has enabled a historic and valiant defence by the Ukrainian people, and as a result, we are now on the verge of a peace deal for Ukraine and a renewal of stability in Europe.
As has been previously reported, Zelenskyy proposed giving the US a stake in Ukraine’s rare earths elements and critical minerals on a visit to Trump Tower in September. In other words, it was the Ukrainian president himself who first proposed to President Trump a future, economic partnership with shared benefits to both nations.
We know Ukraine’s economic future in a time of peace can be more prosperous than at any other point in the nation’s history, and a partnership with Americans will ensure its prosperity. President Zelenskyy recognises this and so does President Trump. With these facts in mind, I travelled to Kyiv on my first international visit as the Secretary of the Treasury with a proposal that demonstrates our long-term commitment to a free and secure Ukraine — an agreement focused on turbocharging the country’s economic growth.
This partnership will support the US’s continued commitment to the people of Ukraine as well as lay the foundation for a robust reconstruction of the Ukrainian economy. While asset prices can be fickle, Ukrainian debt has been trading up on the news, signalling that Ukraine’s creditors and financial markets appreciate the benefits of the economic partnership.
The Ukrainian people have demonstrated incredible bravery and resilience. They deserve to enjoy the benefits of the freedom for which they have fought so heroically. Ukraine is endowed with natural resources and other national assets that can drive its postwar economic growth, but only if its government and people are armed with sufficient capital, expertise and the right incentives.
The terms of our partnership propose that revenue received by the government of Ukraine from natural resources, infrastructure and other assets is allocated to a fund focused on the long-term reconstruction and development of Ukraine where the US will have economic and governance rights in those future investments. This structure and relationship bring the high standards of transparency, accountability, corporate governance and legal frameworks necessary to attract the robust private investment for postwar growth in Ukraine.
The US’s involvement would leave no room for corruption and insider deals. When I was in Kyiv, I met with many American companies that have been on the ground in Ukraine for years. And I have spoken with many more who are ready to support the Ukrainian economy through a just and lasting peace. The terms of this partnership will mobilise American talent, capital, and high standards and governance to accelerate Ukraine’s recovery and sends a clear message to Russia that the US is invested in a free and prosperous Ukraine over the long term.
The US is a durable and long-term partner in this relationship. The proceeds from future revenue streams would be reinvested back into key sectors focused on unlocking more of Ukraine’s growth assets. The terms of this agreement would also ensure that countries that did not contribute to the defence of Ukraine’s sovereignty will not be able to benefit from its reconstruction or these investments.
The US has always been creative in finding ways to best support its partners. In 1942, the US and the UK agreed to “promote mutually advantageous economic relations between them and the betterment of worldwide economic relations”, on the basis of the exchange of destroyers for basing rights in the Caribbean. This forward-thinking provision helped to lay the financial foundation for the unprecedented economic growth experienced over the last 80 years.
In a similar vein, President Trump’s innovative approach represents a new model for productive international partnership. Let’s also be clear as to what this is not. The US would not be taking ownership of physical assets in Ukraine. Nor would it be saddling Ukraine with more debt. This type of economic pressure, while deployed by other global actors, would advance neither American nor Ukrainian interests. In order to create more value over the long term, the US must be invested alongside the people of Ukraine, so that both sides are incentivised to gain as much as possible.
Ukraine’s close neighbour, Poland, has shown what is possible. Through sound economic policies and a diversified economy, Poland has been an attractive trade and investment partner for the US. Since 1992, Poland’s economy in real GDP terms has more than tripled in size while the per capita income of its citizens is more than seven times higher today than it was then. The success that Poland has seen from structural reforms, infrastructure investment, attracting foreign investment, and developing a skilled workforce provides a clear preview of what Ukraine can achieve. Its strategic location, industrious population, and natural resources are a strong foundation for the aspirations of the Ukrainian people.
President Trump’s proposed partnership aligns the interest of the American people with those of the people of Ukraine. The president recognises that national security is built alongside economic security, and the more successful and secure postwar Ukraine is, the more that both the Ukrainian people and the people of the US will benefit. This economic partnership would lay the foundations for a durable peace by sending a clear signal to the American people, the people of Ukraine, and the government of Russia about the importance of Ukraine’s future sovereignty and success to the US.