The US and Ukraine are working to finalize a natural resources agreement that would give Washington access to Kyiv’s untapped mineral riches in exchange for investment, CNN reports. However, questions remain about security guarantees Ukraine hopes to secure. A draft of the deal seen by CNN lacks details and does not include firm security guarantees for Kyiv.
CNN says US President Donald Trump announced on 26 February that a deal has been made and that he was “happy” about it. Ukraine’s President Volodymyr Zelenskyy has been more cautious, saying the agreement could be a “big success” but that it depended on Trump.
Graphite, lithium, uranium, and rare earth elements are crucial for economic growth, clean energy, and defense. The US heavily depends on imports, mainly from China, which controls nearly 90% of rare earth mineral processing. Ukraine holds large reserves of these critical minerals, but outdated infrastructure, war damage, and limited investment hinder development.
Draft agreement details
The proposed agreement seeks to establish a “reconstruction investment fund” jointly managed by US and Ukrainian governments. Ukraine’s Prime Minister Denys Shmyhal said on 27 February that Kyiv would funnel half of the revenues from future state-owned natural resources projects into the fund, with money being reinvested in more developments. He emphasized the deal would exclude existing “deposits, facilities, licenses, and royalties” tied to Ukraine’s natural resources.
“We are only talking about future licenses, developments, and infrastructure,” Shmyhal told reporters.
The draft agreement extends beyond minerals and rare earths to include Ukraine’s other natural resources, such as oil and gas, along with related infrastructure like ports and LNG terminals, CNN says.
France reveals mineral negotiations with Ukraine since October
Expectations and security concerns
Trump said last weekend that he’s “trying to get the money back,” referring to US aid provided to Ukraine under the previous administration without an intent to demand repayments in the future. According to CNN, the US initially demanded a $500 billion share of Ukraine’s resources in exchange for past aid, but Zelenskyy rejected this, saying it would amount to “selling” his country. Trump subsequently called Zelenskyy “a dictator.“
On 26 February, Trump claimed Ukraine would receive “$350 billion and lots of equipment, military equipment, and the right to fight on,” repeating what CNN calls a false claim about the amount of US aid to Ukraine, which the Kiel Institute estimates at about $124 billion.
The draft seen by CNN remains vague on whether any money from the fund would be paid to the US. It states revenues will be reinvested “at least annually to promote the safety, security, and prosperity of Ukraine,” but adds it “will also provide for future distributions.”
Trump expressed confidence on 26 February that the deal would move forward:
“We’ve been able to make a deal where we’re going to get our money back and we’re going to get a lot of money in the future, and I think that’s appropriate.”
However, Zelenskyy firmly rejected repaying past aid: “I will not accept (even) 10 cents of debt repayment in this deal. Otherwise, it will be a precedent,” he said on the same day at a press conference in Kyiv, according to CNN.
Ukraine’s mineral resources have long attracted interest from allies, and Zelenskyy has made them part of his appeal for support. Some deposits are already in Russian-occupied areas, and Zelenskyy has argued the West should support Ukraine to prevent more strategic resources from falling into the Kremlin’s hands.
While the draft does not specify security guarantees, it states the US “supports Ukraine’s efforts to obtain security guarantees needed to establish lasting peace.“
European Commission refutes Politico report on new minerals deal offer for Ukraine
Russia’s position
CNN reports Trump’s return to the White House has shifted US policy on Russia. Earlier this month, US and Russian officials met in Saudi Arabia to discuss ending the war in Ukraine without Kyiv or European allies.
On 24 February, Trump said he was in serious talks with Russia on ending the war and pursuing economic deals. The same day, Putin announced Russia’s willingness to work with US companies on rare earth mining in both Russia and occupied Ukraine.
Related:
- France reveals mineral negotiations with Ukraine since October
- “If Trump wants our minerals, we want F-35s”—Ukrainian soldiers aren’t buying America’s deal
- Duda: European minerals deal could compete with US agreement, while offering security guarantees for Kyiv
- Trump says Zelenskyy will come to US on 28 February to sign subsoil deal
- Trump says he may visit Moscow, not on 9 May but “within weeks”
- US, Ukraine close to signing deal on minerals worth “hundreds of billions of dollars,” Axios reports
