Ukraine and the United States have completed negotiations on an economic cooperation agreement focused on establishing an investment fund for Ukraine’s reconstruction, which will be financed through future mineral resource projects.
As Trump pushes for Ukraine-Russia peace talks, he is also urging Kyiv to sign a deal granting the US access to Ukraine’s mineral resources as compensation for past aid provided amid Russian aggression.
The proposed US deal includes a 50-year stake in Ukraine’s lithium mines and demands that 50% of mineral revenues go to the US until a $500 billion repayment is reached. Ukraine has rejected the deal, calling it exploitative and lacking sufficient security assurances.
Zelenskyy also disputed the figure of $500 billion as compensation for US wartime aid, estimating that the actual aid provided was around $100 billion.
On 26 February, Ukrainian Prime Minister Denys Shmyhal revealed that the agreement, officially titled “Agreement on establishing rules and conditions for the Ukraine Reconstruction Investment Fund,” would create a jointly managed fund where both nations would have equal control.
“This is essentially a preliminary agreement with legal force,” Shmyhal explained. “It provides for the future creation of an investment fund for Ukraine’s reconstruction, where Ukraine and the US will manage this fund equally and contribute to it.”
The agreement specifically targets future mineral resource development rather than existing extraction operations.
Addressing potential concerns about Ukrainian sovereignty, Shmyhal quoted the document’s opening statement that references “the American people’s wish to invest together with Ukraine in a free, sovereign and secure Ukraine.”
Current state revenue streams from companies like Naftogaz (largest national oil and gas company) and Ukrnafta (largest oil company) would remain untouched, while the fund would receive 50% of revenues from new resource development projects and related logistics, according to Financial Times.
A critical aspect of the agreement, Shmyhal emphasized, is its connection to security guarantees for Ukraine.
“We are not considering signing any agreements without security guarantees,” Shmyhal stated firmly. “This agreement is directly tied to security guarantees. Neither the President of Ukraine nor the government of Ukraine will consider this agreement and its signing separately from security guarantees for Ukraine.”
While the draft agreement references security matters, it reportedly does not specify the United States’ exact role in providing such guarantees.
[updated]Speaking at a press conference, President Zelenskyy emphasized that Ukraine is not in debt despite media speculation, according to RBC-Ukraine and Suspilne.
He clarified that the agreement does not include a debt of $500 billion, $350 billion, or even $100 billion, calling such claims unfair.
He also noted that the next agreement, which will involve the creation of a joint fund, will be more complex and substantial.
While the current agreement does not encompass all the security guarantees Ukraine had hoped for, Zelenskyy pointed out that at least some reference to guarantees was included.
US President Donald Trump has indicated that Ukrainian President Volodymyr Zelensky might visit Washington as early as 28 February to sign the agreement about minerals.
Related:
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- Trump’s special envoy Witkoff on minerals deal: “I expect to see a deal signed this week”
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