Kiev, Ukraine – President Zelensky of Ukraine initiated discussions for a minerals deal with then-presidential candidate Donald Trump in September of last year. The deal would grant the United States access to Ukraine’s rare earth mineral deposits, as stated by Volodymyr Zelensky. The Ukrainian government hopes that this agreement, which includes a financial investment from the US, will lead to increased protection for Ukraine in the event of conflict reigniting with Russia after a potential ceasefire.
While essential details of the agreement remain undisclosed, Ukrainian Prime Minister Denys Shmyhal confirmed that both countries have finalized a version of the deal. The preliminary terms include the establishment of an “investment fund” for Ukraine’s reconstruction, where both Kyiv and Washington would have equal management of the fund. Under the agreement, Ukraine would contribute 50% of its future proceeds from state-owned mineral resources, oil, and gas to the fund, which would then be invested in domestic projects.
The New York Times reported, based on a draft document, that the US would own the maximum allowable amount of the fund under US law, though not necessarily the entirety of it. The negotiations surrounding the minerals deal caused tension between Trump and Zelensky, with Ukraine initially rejecting a request for $500 billion in revenue from rare minerals. However, media reports suggest that this demand has since been dropped, with Ukrainian government sources noting that the current provisions of the deal are more favorable to Ukraine.
Zelensky has been advocating for the agreement to include a firm security guarantee from the US. Despite this, as of now, no such guarantee has been agreed upon. The Ukrainian leader stresses the importance of having security guarantees in place to achieve a lasting ceasefire and peace. Ukrainian officials emphasize the necessity of continuing discussions on security assurances to prevent potential Russian aggression post-deal signing.
President Trump anticipates Zelensky signing the agreement during an upcoming visit to Washington, emphasizing the importance of US support for Ukraine. The proposed deal, aimed at providing the US with access to Ukraine’s mineral resources, offers Ukraine a tangible reason to sustain American backing. Zelensky seeks assurance from the US for ongoing support, especially in terms of equipment, ammunition, and potential peacekeeping efforts following any peace deal with Russia.
Kiev estimates that Ukraine holds approximately 5% of the world’s critical raw materials, including significant reserves of graphite, titanium, lithium, and rare earth metals essential for various industries. The potential US-Ukraine agreement on rare minerals has yet to draw a public response from Russian President Vladimir Putin. However, Putin has expressed readiness to engage American partners in joint mining projects, particularly in eastern Ukraine, which Russia has occupied since its full-scale invasion three years ago. Putin also asserts that Russia possesses significantly more resources of this nature compared to Ukraine.