A significant minerals deal between Ukraine and the United States is poised to be signed as early as Wednesday, following weeks of intense negotiations. These discussions have at times turned contentious, temporarily impacting Washington's aid to Ukraine. According to a source familiar with the situation, Ukraine is optimistic about finalizing the natural resources agreement on Wednesday.
Ukrainian Prime Minister Denys Shmyhal announced on Ukrainian television that the country’s economy minister, Yulia Svyrydenko, was en route to Washington to finalize the details. "We are finalizing the last details with our American colleagues. As soon as all the final details have been finalized, I hope that the agreement will be signed in the near future, within the next 24 hours," Shmyhal stated during the Ukrainian Telemarathon.
The ongoing negotiations between the US and Ukraine aim to establish a natural resources agreement, which would grant Washington access to Kyiv's untapped mineral wealth in exchange for investment. This initiative has been in the works since US President Donald Trump returned to the White House in January. Ukrainian President Volodymyr Zelensky was initially expected to finalize the deal during his Washington visit in February, but the agreement remained unsigned due to a contentious Oval Office meeting.
One of the primary sticking points in the negotiations has been the issue of security guarantees. Trump initially expressed reluctance to provide these guarantees until Ukraine signed the agreement, which led Zelensky to describe the draft as asking him to “sell” his country. Since then, Ukrainian officials have indicated that they believe US investment and the presence of American companies in Ukraine will enhance US interest in Ukraine’s security.
Shortly after the unsuccessful White House visit, Trump ordered the suspension of US aid to Ukraine. Although this assistance has since been restored, the incident served as a wake-up call for Ukraine's European allies, prompting them to increase their support for the country. Trump has characterized the agreement as Ukraine “paying back” for the aid it has received since Russia's unprovoked invasion in February 2022.
The specific details of the upcoming agreement have not yet been disclosed. However, Shmyhal mentioned that the deal “will not include assistance provided before its signing.” He elaborated that the agreement represents “a strategic agreement on the establishment of an investment partnership fund” between the US and Ukraine, emphasizing that it is an equitable and mutually beneficial endeavor.
Under the terms of the deal, the US and Ukraine are expected to create a joint investment fund in Ukraine, featuring equal contributions and shared management rights. Shmyhal noted that the American side might consider new military aid to Ukraine as part of its contribution to this fund.
The announcement of the potential signing of the deal was first reported by Bloomberg and the Financial Times. CNN has reached out to the US Treasury and the White House for comment on the matter.
Ukraine's mineral wealth has long attracted the attention of its allies, as the country possesses deposits of 22 of the 50 materials classified as critical by the US Geological Survey. These materials include rare earth minerals and other essential resources needed for the production of electronics, clean energy technologies, and certain weapon systems.
Globally, the production of rare earth minerals and other strategically important materials has been largely dominated by China, which has left Western nations seeking alternative sources, including Ukraine. A memorandum of understanding drafted under the Biden administration last year indicated that the US would promote investment opportunities in Ukraine’s mining projects to American companies, contingent upon Kyiv creating economic incentives and adhering to sound business and environmental practices.
Ukraine has already established a similar agreement with the European Union, signed in 2021. This developing story continues to unfold as both nations work toward solidifying their partnership in the realm of natural resources.
