The United States and Ukraine have reached a tentative agreement on a mineral resources deal, following intense negotiations. The framework of the agreement involves joint ownership of a fund to develop Ukraine's mineral resources, including rare earth metals and oil and gas. Ukrainian President Volodymyr Zelenskyy is expected to visit the White House on Friday to finalize the deal, according to former President Donald Trump.
The discussions have been challenging, with Zelenskyy alleging that the US exerted pressure for a deal exceeding $500 billion. However, Trump announced the finalized deal stands at "$350 billion, military equipment and the right to fight on," indicating a more favorable agreement for Ukraine compared to Washington's initial proposal. This deal does not include any onerous demands for a $500 billion revenue share from exploiting the resources.
The Financial Times reported the agreement was reached on Tuesday, though both the US and Ukrainian governments have not commented on the specifics. The framework includes caveats for resources already contributing to Ukraine's state budget, omitting references to long-term security guarantees Kyiv originally sought. Trump hinted that long-term security concerns would be addressed separately in the future.
“$350bn, military equipment and the right to fight on.” – Donald Trump
In addition to rare earth metals, the deal encompasses Ukrainian oil and gas resources. While the US's exact ownership stake in the new fund remains unclear, the agreement signifies a crucial development in US-Ukrainian relations. Trump also remarked he had discussions with Russia regarding the deal, emphasizing broad interest in its success.
“We’ve pretty much negotiated our deal on earth and various other things,” – Donald Trump
Despite the progress, neither government has released an official statement or details about the intricacies of the agreement. The absence of immediate responses has left many questions unanswered, particularly concerning the specifics of joint fund ownership and potential future negotiations on security issues.