Kyiv has agreed to terms with Washington on a minerals deal that Ukrainian officials hope will strengthen relations with the Trump administration and pave the way for a long-term US security commitment.
The agreement, dated February 24, establishes a joint investment fund to which Ukraine will contribute 50% of proceeds from the future monetization of state-owned mineral resources, including oil and gas, as per a Financial Times report.
The fund will be used to invest in Ukrainian development projects.
Crucially, the deal excludes existing mineral revenues that already contribute to Ukraine’s state budget, meaning it does not affect Naftogaz or Ukrnafta, the country’s largest gas and oil producers.
The development comes a day after Russian President Vladimir Putin signalled openness to offer the US access to Russia’s rare minerals, potentially as a countermeasure to a possible US-Ukraine deal.
The finer details of the US-Ukraine deal
The original proposal from Trump’s administration included a $500 billion claim on potential Ukrainian mineral revenues.
That demand had sparked outrage in Kyiv and European capitals and was ultimately removed from the final agreement.
Despite the revised terms, the final deal does not include US security guarantees, which Kyiv had initially sought as part of the negotiations, the report stated citing sources.
Trump’s administration has instead pursued a shift in US policy, engaging in bilateral talks with Russia that exclude Ukraine and European allies.
Before implementation, the agreement must be ratified by Ukraine’s parliament, where opposition lawmakers are expected to challenge its terms.
Officials have emphasized that no revenues will change hands until the fund is formally established and further details, including its legal jurisdiction, are finalized.
The agreement is being framed as part of a broader US-Ukraine partnership, though its long-term implications remain uncertain.
As per the report, the agreement has been approved by Ukraine’s justice, economy, and foreign ministries, and President Volodymyr Zelenskyy is expected to travel to Washington for a signing ceremony with Trump in the coming weeks.
Ukraine’s minerals
Ukraine estimates that about 5% of the world’s critical raw materials are located within its borders, making it a key player in the global supply chain for essential minerals.
These resources are vital for industries ranging from energy storage to aerospace and defense.
The country holds 19 million tonnes of proven graphite reserves, placing it among the top five global suppliers, according to the Ukrainian Geological Survey.
Graphite is a crucial component in the production of electric vehicle (EV) batteries, making Ukraine a strategic resource hub for the green energy transition.
In addition, Ukraine possesses a third of all European lithium deposits, a key material in battery technology. As demand for lithium surges with the global push toward electrification, Ukraine’s reserves could become increasingly important.
Before Russia’s invasion, Ukraine accounted for 7% of global titanium production. Titanium is a lightweight yet strong metal used extensively in aerospace, power generation, and industrial applications.
Further, Ukraine has significant reserves of rare earth metals, a group of 17 elements essential for producing weapons systems, wind turbines, electronics, and other modern technologies.
These materials are critical for defense and high-tech industries worldwide.
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