Potential Economic Boost for Ukraine Post-Conflict
Treasury Secretary Scott Bescent is optimistic that Ukrainian President Volodymyr Zelensky could significantly improve his country’s economy through a US-mediated mineral trade agreement.
“I often say that economic security equates to national security,” Bescent remarked in a conversation with Miranda Devine on her podcast, Podforce 1. He added that once the conflict concludes, this trade could usher in growth levels akin to those seen in the post-Cold War era for Kyiv’s market.
He pointed out that after the fall of the Iron Curtain, Poland and Ukraine had economies of comparable sizes. However, Poland’s economy has now expanded to be about three times larger.
Bescent expressed hope that, through the mineral trade, Ukraine might achieve similar economic momentum. “I hope the Ukrainian economy can grow at that rate,” he said, adding, “I think the Russians might find that intimidating.”
The long-awaited agreement was finalized in April, with Bescent representing the US.
The collaboration between the US and Ukraine involves the creation of a joint reconstruction investment fund, allowing both nations to acquire licenses for oil, gas, and essential minerals, sharing the profits equally.
American military support to Ukraine will also be considered a financial contribution to this fund, enabling Washington to assist without further burdening taxpayers.
Before the April signing, Zelensky had wavered on whether to commit to the agreement, leading to a tense exchange earlier this year between himself, President Trump, and Vice President Pence.
That meeting on February 28 was marked by turmoil, ultimately stalling the signing of the Minerals Bill.
Later, there were discussions about how Zelensky “diminished the US in his precious Oval Office,” indicating he could return once ready for peace.
“He’s navigated an extraordinary and perilous situation and has played his cards well,” Bescent noted, highlighting how Zelensky transitioned from being a comedian to a prominent political figure. “He’s quite the performer,” he added.
During the Podforce 1 interview, Bescent also suggested that part of Zelensky’s initial reluctance to join the mineral trade was likely due to pressure from wealthy constituents in Ukraine.
He emphasized that Ukraine is considered one of the most corrupt nations globally, ranked 105th out of 180 on Transparency International’s Corruption Perception Index.
Bescent mentioned that funds from the agreement, if misdirected, might end up in foreign bank accounts instead of benefiting the average Ukrainian.
According to the latest World Bank estimates, reconstructing war-devastated Ukraine could cost around $524 billion.
This mineral trade could also provide American investors with opportunities to secure various reconstruction contracts.
“Once the agreement is finalized, there will be a strong bond between Ukrainians and Americans,” Bescent told Devine. “If they succeed, we succeed. And vice versa.”
