Ukraine agrees to deal with US on mineral resources

^{Photo: BBC}
After the US dropped its most stringent demands, Ukraine has agreed on the details of a deal on its mineral resources, the Financial Times reported.

The US has reportedly given up $500 billion in potential revenue from Ukrainian resources. However, the agreement does not mention the US security guarantees that Kiev had demanded in exchange for agreeing to the deal.

Kiev is now ready to sign an agreement on the joint exploitation of its mineral resources, including oil and gas, the report said.
According to a document dated February 24, 2025, seen by the Financial Times, the agreement includes the following:

• The creation of a fund that will transfer 50 percent of the proceeds from the future monetization of Ukraine's mineral resources, including oil, gas and infrastructure related to their extraction;
  
• The funds of this fund will be directed to investment projects in Ukraine itself;
  
• The size of the US share in the fund and the terms of "joint ownership" of the resources are still unclear.
  

The agreement does not include mineral resources that already feed the Ukrainian government's budget, meaning it does not cover the current activities of Naftogaz or Ukrnaft, Ukraine's largest gas and oil producers.

Ukrainian officials said the agreement had been approved by the ministers of justice, economy and foreign affairs. President Volodymyr Zelensky is also expected to visit the White House in the coming weeks for a signing ceremony with Trump.

Preliminary terms of the deal

The original document called for the creation of a reconstruction investment fund in which the United States would “retain a 100 percent financial interest.” Under the plan proposed by the Trump administration, Ukraine would have to contribute 50 percent of the revenues from mineral resources, including oil and gas, and related infrastructure, up to a maximum of $500 billion to the fund. These terms were deemed unacceptable in Kiev and were removed from the final draft of the agreement.

The fund’s mandate to invest in Ukraine is another change that Kiev is seeking. The final document states that the United States will support Ukraine’s economic development in the future.

Ukrainian officials added that the deal was merely a "round deal" and that no revenue would change hands until the fund was established. This gives time to resolve possible disagreements. Among the unresolved issues is the issue of coordination of transaction jurisdiction. Follow “Zamin” news on “Telegram”