By Demián Vinnichenko*
The center exploits the periphery
At the end of April 2025, Ukraine and the United States signed a “Cooperation Agreement on Mineral Extraction.” On the surface, it provides “aid” from the United States. In reality, however, it consolidates rigid imperialist control for an indefinite period. As the center of the global capitalist system, the United States benefits, while Ukraine, weakened by war, falls deeper into dependence. Under the guise of an “equal partnership,” a model is being imposed in which Ukraine’s natural resources remain within the country but are managed from abroad by large U.S. corporations.
The Zelensky government officially assures that the agreement “does not limit sovereignty over the subsoil” and points out that a “investment fund” is being created that will be comprised of 50/50 ownership. The final text does not mention any direct debt obligations to the United States due to the “aid” received during the last three years of war. In practice, foreign investors will have exclusive or privileged access to 57 types of minerals, including titanium, lithium, uranium, gas, and oil, which will mainly be exported as raw materials. Although the deposits are not formally sold, the Ukrainian state is obligated to create “favorable conditions for transnational companies.” Half of future revenues will go to an investment fund, which, despite the declared equality, will be controlled by Washington.Unsurprisingly, the lion’s share of revenues from Ukrainian mineral resources will go to the United States.
Nor is it surprising that, at the beginning of the negotiations, the U.S. conditions were even more abusive. Washington demanded total control of the fund and two-thirds of future revenues to pay off “debts” for military aid. Some compared this situation to reparations paid by countries defeated in wars.
Although the final version of the agreement is somewhat softer, its colonial essence remains unchanged. The Ukrainian authorities are opening the country’s subsoil to Western capital, especially that from the U.S. While Ukraine formally retains its “sovereignty,” it is essentially signing away management of its resources to those who are not concerned with rebuilding the country, but rather with their own usurious profits.
This strengthens the oligarchy and marginalizes workers
By signing this “resource agreement,” the Ukrainian authorities are ensuring the country’s role as a supplier of raw materials. Will this improve Ukraine? It will certainly benefit the Ukrainian oligarchs, who will strengthen their capital thanks to an influx of foreign investment in the extractive industry. They have historically enriched themselves by exporting raw materials, such as minerals, metals, and chemicals, and the new agreement will allow them to increase their profits. For now, their ownership of mines, quarries, and metallurgical plants remains unaffected. Cooperation with U.S. capital opens up access to loans, technology, and political “cover.”
In contrast, Ukrainian workers are excluded from managing their country’s natural resources. These riches will flow far from the pockets of ordinary people. Instead, these enormous funds will be distributed among foreign investors, Ukrainian magnates, and a new fund controlled by colonial state bureaucrats. Instead of mountains of dollars in which rare metals are valued, workers will face more poverty and unemployment since the extractive industry creates few jobs, as well as greater social inequality.
War as business
Putin’s imperialist invasion has created “opportunities” for Western imperialists. They are exploiting these opportunities to exert economic and political influence over Ukraine. U.S. officials have openly stated: “Given that the United States is investing tens of billions of dollars to support Kyiv, it has a right to expect a ‘return on investment’…” They have decided to cash in by gaining access to Ukraine’s natural resources and other riches, particularly its highly skilled labor force.
The Agreement on Minerals has become a material embodiment of imperialist logic. The White House exploited Ukraine’s military vulnerability to impose humiliating economic conditions. Negotiations on the agreement were conducted in parallel with combined pressure on Kyiv: political pressure from Trump and military pressure from Putin. When Ukrainian leaders delayed the signing by trying to negotiate, the U.S. administration resorted to blackmail by temporarily freezing military aid and satellite signals. All this happened amid heavy fighting! This occurred at a time when Ukraine’s dependence on arms and ammunition supplies was—and still is—critical. The U.S. imperialists cynically used the war as leverage: “We will sell you means of defense in exchange for your resources.”
Meanwhile, Ukraine does not receive any minimal security guarantees in exchange for its one-sided economic concessions. Neither the agreement nor the accompanying documents obligate the U.S. to defend Ukraine in the event of a new Russian attack. U.S. authorities retain full “freedom of action.” Aid for Ukraine’s defense in this war continues to be based on U.S. interests. In a different political situation, this support could cease, and Ukraine’s mineral resources would already have been exported abroad.
This dual policy of “helping” with one hand while stealing with the other exemplifies the essence of Western imperialism and imperialism in general. Imperialists see war as an opportunity to further their geo-economic and political interests.
Down with imperialism!
The Ukrainian authorities and ruling elites are undermining the long-term interests of their own people by placing the country in the position of an economic vassal of the United States. As Marxists, we must resolutely denounce this agreement. We must denounce both Russian and Western imperialism. For Ukrainian workers, both pose deadly threats: military occupation and national oppression from the former, and economic plunder and neocolonial exploitation from the latter.
The way out of this double trap lies in the workers of Ukraine’s independent struggle for socialist transformation. Only by placing all resources under the control of workers and society and expelling foreign thieves and local oligarchs can the Ukrainian people truly manage their country’s wealth. Funds for reconstruction and development must not flow into investors’ pockets. The first priority must be the independent development of the defense industry, reconstruction of damaged housing, construction of new housing, and restoration of schools, hospitals, and factories. Decent wages must be restored, and industry must be revived through democratic planning carried out by the workers themselves.
The road to Ukraine’s national liberation will pass through the social and political liberation of the Ukrainian working class.
(*) Translation of a note published in Ukraine on May 25, 2025.
