Ukrainian Official Announces Agreement on Minerals Deal with the U.S.
Bloomberg via Getty Images Haul trucks carry ore from an a mine in central Ukraine (file photo)
Ukraine has reached an agreement on major mineral deal terms with the US, according to a senior official in Kyiv who spoke with the BBC. The official stated that they have “agreed it with several positive amendments and see it as a favorable outcome,” but declined to provide more details.
Media reports indicate that Washington has dropped its initial demand for rights to $500bn (£395bn) in potential revenue from utilizing natural resources. However, the US has not offered firm security guarantees – another key Ukrainian demand. President Donald Trump expressed his anticipation of meeting with Ukrainian President Volodymyr Zelensky in Washington DC this week to sign the deal after exchanging strong words about each other.
Without confirming that an agreement had been reached, Trump stated on Tuesday that Ukraine would “get the right to fight on” as part of the deal. He expressed appreciation for Ukrainian bravery but acknowledged their dependence on US military equipment and money. Asked about ongoing supplies of US equipment and ammunition, he suggested this might continue until a deal with Russia was signed.
Trump also stated that any peace agreement in Ukraine would require “some form of peacekeeping,” though this must be acceptable to all parties involved. Ukraine possesses significant deposits of critical elements and minerals, including lithium and titanium, as well as substantial coal, gas, oil, and uranium reserves worth billions of dollars.
A Ukrainian government source reported that the initial terms agreed include state-owned mineral resources and other assets. The provisions are “much better for Ukraine now,” they added. It would involve creating a jointly owned fund to rebuild Ukraine’s infrastructure and economy. Ukraine would contribute 50% of future proceeds from these sources to the fund, which would then invest in projects within the country.
Deputy Prime Minister Olha Stefanishyna told the Financial Times that the deal was part of “a bigger picture.” This agreement is hoped to pave the way for more cooperation between Kyiv and its former biggest ally amid a hostile backdrop where Washington appears aligned with Moscow. Trump previously referred to Zelensky as a “dictator” and blamed Ukraine – not Russia – for starting the war.
Ukraine holds deposits of critical raw materials, including 19 million tonnes of proven graphite reserves used in electric vehicle batteries, a third of all European lithium deposits (crucial for current batteries), significant rare earth metals used in various vital products, and was previously responsible for producing about 7% of the world’s titanium.
Some mineral deposits have been seized by Russia. According to Ukraine’s economy minister Yulia Svyrydenko, resources worth $350bn remain under Russian occupation today.
The war in Ukraine has led Zelensky to raise the prospect of access to some of the country’s mineral wealth last year with Western partners. Trump and Putin have also discussed US access to rare minerals from Russian-occupied Ukrainian territories. However, there are growing concerns within Kyiv and across Europe about potential exclusion from any negotiations aimed at ending the conflict.
This deal marks a shift in American foreign policy towards Ukraine under President Trump’s “America First” principles, where aid comes with strings attached rather than being given purely for humanitarian or strategic reasons. It is unclear how this trend will impact future US relations and policies around the world.
