Minerals deal still in progress: Ukraine and US outline next steps

Takeaways:

• What does the memorandum regarding the future minerals deal envisage?

• What obligations does Ukraine assume by signing this document?

• What negotiation deadlines for signing the agreement does the memorandum set?

• Will the USA take into account Ukraine’s Eurointegration course and debts to other creditors?

• What did the partners not mention in the memorandum text?

On the evening of April 17, Deputy Prime Minister – Minister of Economy Yuliia Svyrydenko together with US Secretary of the Treasury Scott Bessent signed a document titled "Memorandum of Intent between the Government of the United States of America and the Government of Ukraine to Finalize the Formal Agreement on Economic Partnership and Reconstruction Investment Fund."

On the morning of April 18, the Ministry of Economy published the text of the memorandum.

This document is of a framework and organizational nature; it outlines the peculiarities of the process of preparing the agreement text, therefore it does not provide for obligations of the parties regarding minerals or other economic actions.

Clear timeframes for further negotiations

The memorandum states that the Prime Minister of Ukraine Denys Shmyhal next week (from April 21) is to visit Washington and meet with Secretary Scott Bessent in order to “provide high-level support for the completion of technical discussions on the terms of the agreement.”

The memorandum also stipulates that the US and Ukrainian negotiating teams must provide a report on progress toward concluding the Agreement by April 26. By this date, discussions must be completed so that the agreement can be signed as soon as possible. In the final point of the memorandum, it is stated that the parties confirm their intention to complete the preparation of the necessary documents for the official conclusion of the agreement as quickly as possible.

Photo: Minister of Economy of Ukraine Yuliia Svyrydenko signs the Memorandum on the minerals deal (Press Service of the Ministry of Economy)

Considering Ukraine’s Eurointegration course

An important political aspect of the document is that the USA respects Ukraine's intention to avoid conflict between the provisions of the future Agreement and our country's obligations undertaken within the framework of the EU accession process.

From an economic point of view, it is important that the American side recognizes Kyiv's previously assumed financial obligations to other creditors. This point, for example, takes into account Ukraine's existing debts to the IMF, EU countries, Canada, the World Bank, and other financial institutions.

Recognition of the roles of the USA and Ukraine

The first point of the memorandum states that the USA has provided significant financial and material support to Ukraine since the beginning of the full-scale war. The parties also acknowledge Ukraine's contribution to strengthening peace and security through the voluntary renunciation of nuclear weapons in the 1990s.

What the future Agreement with the USA will be about

The memorandum states that the American side, together with the Ukrainian side, wishes to invest in a “free, sovereign, and secure Ukraine” and strives for lasting peace and a durable partnership. The parties intend to create a Reconstruction Fund as part of the economic partnership between the two countries.

Mention of previous negotiations

The document notes that on April 11–12, the American and Ukrainian sides held previous productive technical negotiations in Washington. After them, Scott Bessent stated that the parties are very close to signing the agreement.

On April 16, the Bloomberg agency reported that the USA had softened its financial demands on Ukraine. Donald Trump’s administration reduced its estimate of its assistance to Ukraine in the war from the previous $300 billion to $100 billion. This figure is already close to the estimate of the Ukrainian government, which, according to Bloomberg, amounts to $90 billion in assistance from Washington. The USA insists that the amount of aid already provided was counted as their share in the future investment fund.

On the same day, Deputy Minister of Economy Taras Kachka reported that the next round of negotiations is scheduled for April 24.

During a press briefing on April 17, President Volodymyr Zelenskyy stated that the meeting on April 11–12 was “productive and positive,” noting that the parties were “moving towards each other.” Zelenskyy stated that, while the process of developing the text of the detailed international agreement is ongoing, the USA initially proposed signing a Memorandum of Intent. Ukraine responded positively and constructively to this idea. Zelenskyy assessed the signing of the memorandum as the first step on the path to signing a more large-scale economic agreement.

Zelenskyy noted that the issue of the gas transmission system is not included in the text of the agreement, and the USA is not insisting on this. Ukraine continues to defend the position on the impossibility of transporting Russian gas.

Photo: US Secretary of the Treasury Scott Bessent signs the Memorandum on the minerals deal online (Press Service of the Ministry of Economy)

What provisions are not mentioned in the memorandum

The memorandum does not specify the amount of aid provided by the United States to Ukraine since 2022. Additionally, the memorandum fails to mention any security guarantees for Ukraine. The document only states that “The USA and Ukraine desire lasting peace in Ukraine and durable partnership between their two peoples and governments.”

It is also unclear whether the Ukrainian side’s reservation regarding investment restrictions in Ukraine from the EU will be lifted. Previously, the terms of cooperation proposed in Washington granted preferences to American investors. In Ukraine and the EU, this was considered incompatible with EU legislation and unacceptable for Kyiv.

The first attempt to sign the agreement failed

Ukraine and the USA were supposed to sign a framework agreement on minerals at the end of February 2025, but this did not happen due to a dispute between Ukrainian President Volodymyr Zelenskyy and US President Donald Trump at the White House.

In the initial draft of the agreement, it was proposed to establish a Reconstruction Investment Fund, 50% of whose contributions were to be made by Ukraine from its future taxes on mineral extraction. The financial obligations of the United States were not clearly outlined. The fund was to allocate funds for Ukraine’s reconstruction at least once a year, with all other investments being made, not necessarily in Ukraine.

After that, the States proposed to Kyiv that it move directly from a framework agreement to a full-fledged one. According to President of Ukraine Volodymyr Zelenskyy, the new draft agreement includes provisions that both parties had previously rejected.

At the end of March, Member of Parliament Yaroslav Zhelezniak published the text of the new draft agreement, which was extremely unfavorable for Ukraine. The draft document stipulated that the USA would have the majority of votes in the Fund’s board, the funds from it would be converted into dollars and withdrawn abroad, and the American side would be the first to benefit from the Fund’s operations.

At the beginning of April, White House leader Donald Trump stated that Zelenskyy allegedly wanted to abandon the agreement on rare earth metals and that this would be a “very, very big mistake” on the part of the Ukrainian side.

After that, on April 11–12, technical negotiations between Washington and Kyiv on the agreement took place in the USA. On April 16, Yuliia Svyrydenko reported significant progress in negotiations with the United States regarding the minerals deal. The future document includes the creation of a fund for investments in Ukraine’s recovery.