Amid the ongoing Russo-Ukrainian war, Trump is pushing Ukraine to enter talks with Russia—allegedly to end the war—while pressuring Kyiv to accept a colonial-style mineral deal granting the US exclusive access to critical resources, including rare earths. The initial draft of the deal required Ukraine to contribute 50% of profits from future resource extraction to repay US military aid provided since 2022, which the Trump administration retroactively reclassified as a loan. However, after a February heated exchange between Zelenskyy, Trump, and JD Vance, the revised version escalated the contribution to 100%, with a 4% annual interest, before Ukraine could even access any profits.
A 55-page draft agreement, published earlier by the Financial Times, would grant the US permanent control over major infrastructure and mineral investments in Ukraine. If signed, the deal would give Washington control over investment decisions in key sectors of Ukraine's economy, including mining, oil and gas, critical minerals extraction, as well as ports, roads, and railways.
Ukrainian officials, including legal experts, held a video call with their US counterparts on 28 March to seek clarification on the draft agreement, according to an anonymous Bloomberg source. The US representatives reportedly did not object to concerns raised by Kyiv, particularly regarding the proposal's potential conflict with Ukraine's EU membership goals, indicating that Washington may be open to discussions on potential changes.
"The United States remains committed to the quick conclusion of this vital agreement, and to securing a lasting peace for both Ukraine and Russia," a Treasury spokesperson told Bloomberg.
Previous US military aid reclassified as debt, US control of investment board
The draft agreement outlines that the US would have the primary claim on profits transferred into a special reconstruction investment fund controlled by Washington. Importantly, the agreement designates the American aid provided to Ukraine since Russia's full-scale invasion in February 2022 as the US's contribution to this fund. This aid is referred to as "material and financial benefits" in the draft. Bloomberg's source said Kyiv expressed concerns about this aspect during the call. Ukraine's President Volodymyr Zelenskyy had previously dismissed the idea that military aid from the US could be considered debt, emphasizing that the deal must not hinder Ukraine's EU aspirations, as membership is enshrined in the country's constitution."I will only consider the version that was officially submitted to our side. The format has changed, so let's study that format first, and then we can talk," Zelenskyy told reporters, according to The Washington Post.He stated that any further changes must undergo thorough review, adding that he will personally review the deal and speak publicly only once lawyers "confirm that everything complies with Ukrainian law and our constitution." The proposed fund board managing all investments would have three US and two Ukrainian representatives, giving the US majority control, The Washington Post reports. Ukrainian members would be vetted by Washington and could be dismissed at any time. A former Ukrainian official, speaking anonymously to WP, remarked,
"Either they are very impudent or trying to start with too aggressive position just to be able to make some small concessions."
"Reparations to the US"
Ukrainian lawmaker Yaroslav Zheleznyak told WP that parliament seeks fair cooperation with the US but "absolutely will not support" the current version of the deal. He called it "frankly, horrifying," citing concerns over US access to Ukraine's mineral, oil, and gas reserves, with profits transferred abroad. Zheleznyak also criticized the lack of security guarantees and US veto power over new infrastructure and resource sales, stating, "It can and must be changed." First Deputy Prime Minister and Economy Minister Yulia Svyrydenko on 29 March called for an end to "public discussions" on the proposal, warning that this could harm the talks. "Ukraine wants to maintain a constructive dialogue with US partners," she wrote on Facebook, according to Bloomberg.A senior Ukrainian official told WP the new draft deal looks like "Ukraine was in the war with US, lost, [was] captured and now has to pay lifetime reparations."
US Treasury Secretary Scott Bessent told Fox News on 27 March that he hopes to get to full discussions "and even get signatures next week" on the deal, according to The Washington Post.
Related:
- FT: Ukraine’s officials call US minerals deal “robbery” as Washington expands demands
- Trump now wants entire Ukrainian resource revenue in updated minerals pact offer
- Zelenskyy: Ukraine to consider US minerals deal if it’s linked to future aid
- The Telegraph: New US mineral deal threatens Ukraine’s EU membership prospects
- Ukrainian deputy slams minerals deal giving US exclusive resource rights on titanium and lithium
