Ukraine and the US have made a deal on mineral resources. What does the agreement say?
According to the Financial Times, the relevant agreement is to be signed during the upcoming visit of Ukrainian President Volodymyr Zelensky to the United States. However, the document lacks a clause that is important for the Ukrainian side.
Ukraine and the United States have agreed on the terms of a deal to jointly develop mineral resources, including oil and gas. It is noted that this happened after Washington dropped its claims to the right to receive $500 billion in potential income, the Financial Times learned .
According to the publication, the corresponding agreement should be signed during the visit of Ukrainian President Volodymyr Zelensky to the United States.
The Ukrainian leader will have the opportunity to discuss the big picture, after which the parties will be able to think about next steps, the sources said. Photo: Press Service of the President of Ukraine
As Deputy Prime Minister and Minister of Justice of Ukraine Olha Stefanishyna told the publication, the agreement on mineral extraction is only part of the overall picture. According to her, American partners have repeatedly stated that this is part of a “larger picture.”
As AFR reports, citing Ukrainian officials, they managed to negotiate much more favorable terms.
The initial draft, with its highly onerous conditions, which US President Donald Trump presented as Kiev's way of repaying Washington with military and financial aid, has sparked outrage in Kiev and other European capitals.
The final agreement, dated February 24 and seen by the FT, envisages the creation of a fund into which Ukraine would contribute half of the proceeds from the "future monetization" of state-owned mineral resources, including oil and gas, and related logistics. The fund would be used to invest in projects in Ukraine.
However, it does not include mineral resources that already enter the state treasury of Ukraine, meaning it will not cover the activities of Naftogaz and Ukrnafta, the largest Ukrainian producers of gas and oil.
However, the final version of the draft agreement does not include any mention of the U.S. security guarantees that the Ukrainian side insisted on. Moreover, such important issues as the size of the U.S. share in the fund and the terms of the “joint ownership” deals are left for discussion in subsequent agreements.
Ukrainian officials hope the deal will improve relations with the Trump administration and pave the way for long-term U.S. security commitments. Photo: 1MI
It is noteworthy that former British Prime Minister Boris Johnson recently said that the agreement on rare earth metals that Ukraine and the United States may conclude is a “scam.”
On Monday, February 24, at a forum in Kiev, he stated :
"I can't accept this. This is a mineral scam. Not a single penny should go into this fund they are proposing to set up with Ukraine. There is a very high price tag involved," Johnson said.
At the same time, he indicated that signing the agreement was the only way forward. Johnson said he had seen the latest draft proposals and insisted that they were more favorable to Ukraine than the earlier version. The politician drew parallels between the new agreement and the Lend-Lease program (an American program during World War II aimed at replenishing allied supplies, including through long-term loans).
"Yes, on the one hand, it is extortion, but then Lend-Lease in 1941 was the same, wasn't it? The Americans. They absolutely deceived us. They taxed us <…> I understand how disturbing it is to think that this deal could be difficult for your country. But I do think that we need to go through this stage, to realize what this deal really is," he added.
Volodymyr Zelenskyy has for the first time included a proposal to conclude an agreement on mineral resources in the so-called "victory plan". Photo: Press Service of the President of Ukraine
Volodymyr Zelenskyy first included a proposal for a minerals deal in the so-called "victory plan" he presented to Donald Trump last September.
The plan included five public points , one of which concerned concluding an agreement on the joint protection of Ukraine's critical resources, joint investment and the use of Ukraine's economic potential. Kiev proposed to develop the country's economy together with the West and extract profit from its natural resources, but, as was emphasized, that these resources should not go to Russia.
According to Bloomberg, on Wednesday, February 26 , the Ukrainian Cabinet of Ministers will recommend signing the agreement. And already on February 28 , AFP specifies, the official signing of the document may take place in Washington.
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