Ukraine-US minerals deal signing canceled

According to sources, preparations had already been made at the White House for the signing, but plans changed after a heated exchange between Ukrainian President Volodymyr Zelenskyy and US President Donald Trump.

A White House official stated that it would be up to Ukraine to decide whether to reschedule the meeting while Zelenskyy remains in the US.

What were the initial conditions of the United States

In October 2024, President Volodymyr Zelenskyy presented Ukraine’s victory plan, highlighting the country’s vast natural resources, including critical minerals worth trillions of dollars.

He emphasized that Ukraine’s deposits of uranium, titanium, lithium, graphite, and other strategic materials, along with its energy and food production potential, were among Russia’s key targets in the war.

Zelenskyy proposed that the US, EU, and other global partners sign a special agreement for the joint protection, investment, and utilization of Ukraine’s critical resources.

According to the Financial Times, this proposal was tailored for Trump, who quickly seized on the idea but sought terms most favorable to the US.

In early February, Trump announced plans to negotiate a deal ensuring US access to Ukraine’s rare earth metals. He argued that Washington should be compensated for its aid to Kyiv. Trump initially claimed the US had provided $500 billion, later revising the figure to $350 billion.

On February 11, US Treasury Secretary Scott Bessent brought the initial draft agreement to Kyiv. The US demands included 100% ownership of an investment fund and a $500 billion sum. Zelenskyy refused to sign, stating the deal did not align with Ukraine’s interests.

Zelenskyy clarified that US assistance amounted to around $100 billion, not $500 billion or $350 billion. He insisted it was grant-based aid, agreed upon with then-President Joe Biden’s administration, rather than a debt.

This stance led to criticism from Washington and a sharp reaction from Trump. However, after further negotiations, Kyiv and Washington eventually revised the deal to a form acceptable to Ukraine.

"It is very important for us that the text does not mention Ukraine’s debt - not the $500 billion figure or any other debts," said Ukrainian Foreign Ministry spokesperson Heorhii Tykhyi. Additionally, he noted that a provision requiring Ukraine to reimburse future aid at a rate of $2 for every $1 received was removed from the agreement.

What the deal entails and what’s next

According to Prime Minister Denys Shmyhal, the document is called the Agreement on the Establishment of an Investment Fund for the Development and Reconstruction of Ukraine. It is a preliminary agreement with legal implications.

The agreement envisions the creation of an Investment Fund for Ukraine’s development and reconstruction, though the specific operational details will be determined in upcoming negotiations.

Under the initial framework, Ukraine would contribute 50% of all revenues generated from the future monetization of its state-owned natural resources and infrastructure assets to the fund. The US would also provide contributions. These funds would then be invested in Ukraine’s recovery, development, and security.

The fund would be jointly managed by the governments of both countries, with decisions requiring mutual approval. Importantly, Ukraine’s natural resources remain its property and will not be transferred to the US.

Shmyhal emphasized that the agreement includes a security guarantees provision. It states that this preliminary agreement is part of the architecture of agreements already signed with the United States.

If signed, both sides would need to form delegations to draft a more detailed follow-up agreement, which would be formalized as an international treaty. This comprehensive agreement would require approval by Ukraine’s government and parliament. This broader agreement will spell out all the specifics of how the fund will work.

The next steps involve signing the agreement, forming a government-approved delegation, and setting directives for intergovernmental negotiations on the fund’s creation, Shmyhal explained.

However, security guarantees remain Ukraine’s top priority in its cooperation with the US. According to The Economist, citing a Ukrainian government source, President Volodymyr Zelenskyy does not intend to sign the next phase of the US-Ukraine minerals deal unless it includes broader US security guarantees.