Despite ongoing negotiations, the U.S. and Ukraine are close to finalizing a mineral agreement, though a final hurdle remains.
Prime Minister Denys Shmyhal announced that First Deputy Prime Minister Yulia Svyrydenko is in Washington to formalize the agreement. This deal is crucial for Kyiv in strengthening relations with the U.S. President, who aims to broker a peace settlement in Ukraine.
The latest version of the agreement was reached after the Trump administration agreed that only future military aid would be considered the U.S. contribution.
President Trump had previously expressed interest in accessing Ukraine’s rare earth materials in exchange for continued U.S. support, viewing it as a reimbursement for aid provided to Kyiv.
Negotiations were initially hampered after an argument between Trump and Ukrainian President . However, they met in Rome at the Pope’s funeral on Saturday.
A draft of the agreement indicates that the two countries would establish a joint reconstruction fund, with 50% of profits from new Ukrainian mineral licenses funding it.
The draft gives the U.S. priority access to new Ukrainian natural resource deals but does not grant Washington an automatic share of Ukraine’s mineral wealth or gas infrastructure.
Ukraine would not be required to repay previous aid, with only future assistance counting towards the U.S. contribution to the fund.
Shmyhal emphasized the strategic importance of the deal, calling it an “equal and good international deal on joint investment” for the development and restoration of Ukraine.
However, a last-minute issue arose as U.S. officials are reportedly requiring Ukraine to sign three documents simultaneously – the framework, a detailed fund agreement, and a technical document – which Ukraine says requires parliamentary ratification and isn’t immediately possible, according to the Financial Times.
Treasury Secretary Scott Bessent’s team reportedly told Svyrydenko to “be ready to sign all agreements, or go back home,” according to the Financial Times.
The U.S. is interested in accessing over 20 strategically important raw materials, including oil and natural gas. Key resources include Ukrainian deposits of titanium (used in aerospace manufacturing) and uranium (used in nuclear power, medical equipment, and weapons), as well as lithium, graphite, and manganese (used in electric vehicle batteries).
The current deal does not impede Ukraine’s path towards European Union membership, a crucial condition for Kyiv.
A memorandum of understanding was signed on April 18 as an initial step towards a mineral resources accord, with the aim to complete talks by April 26 and sign the deal promptly.
Reuters and
“`