On March 27, Reuters reported that the Trump administration has unveiled a revised and more comprehensive minerals deal with Ukraine. This information comes from three individuals familiar with the ongoing negotiations, along with a draft proposal summary obtained by Reuters. The newly proposed terms mark a significant shift from the original agreement, emphasizing the economic partnership between the two nations.
According to sources, the updated proposal does not provide Ukraine with any future security guarantees. Instead, it requires Ukraine to allocate all income generated from natural resources managed by both state and private enterprises within its territory to a joint investment fund. This new framework aims to strengthen the financial ties between the U.S. and Ukraine, reflecting the U.S.'s commitment to Ukraine’s economic stability.
Leading the negotiations for the United States is Treasury Secretary Scott Bessent, although he did not respond promptly to requests for comments regarding the proposal. The terms presented by Washington extend beyond those discussed in the days leading up to the contentious Oval Office meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy last month.
Trump has emphasized that this minerals deal is pivotal for securing a peace agreement, as it gives the U.S. a financial stake in Ukraine's future. Additionally, he views it as a means for America to recoup some of the substantial financial and military aid—amounting to tens of billions of dollars—provided to Ukraine since the onset of the Russian invasion three years ago.
While National Security Council spokesperson James Hewitt declined to confirm specific terms of the latest proposal, he highlighted that the deal would enhance the bilateral relationship between the U.S. and Ukraine. “The mineral deal offers Ukraine the opportunity to form an enduring economic relationship with the United States that is the basis for long-term security and peace,” Hewitt stated.
Ukrainian officials are still assessing the terms of this “major” new deal, as indicated by President Zelenskiy. He noted that the U.S. has been consistently altering the terms of the proposed minerals deal, but he reassured that Kyiv does not wish for Washington to perceive any opposition to the agreement.
In a recent interview with Fox News, Bessent mentioned that the U.S. had “passed along a completed document for the economic partnership” and expressed hopes for full discussions and possible signatures in the following week. The updated proposal stipulates that the U.S. would have the first right to purchase resources extracted under this agreement, ensuring that it recoups all funds provided to Ukraine since 2022, along with an annual interest rate of 4%, before Ukraine can access profits from the fund.
If finalized, the joint investment fund will consist of a board of five members—three appointed by the U.S. and two by Ukraine. The funds generated from this initiative will be converted into foreign currency and transferred abroad, managed by the U.S. International Development Finance Corporation (DFC). Reports suggest that there have been discussions about the DFC's role in administering this fund, highlighting the intricacies of the proposed economic partnership.
The updated proposal, first reported by the Financial Times, signifies a critical step in the evolving relationship between the U.S. and Ukraine, with potential long-term implications for both nations.
