US and Ukraine Reach Agreement on Strategic Minerals, No Signing Yet

KYIV/WASHINGTON: Ukraine and the United States announced on Wednesday that they are poised to finalize a minerals agreement after months of complex negotiations. However, a last-minute obstacle has raised questions about the timing of the deal.

“We are ready to sign. The Ukrainians decided to make a few last-minute adjustments last night,” US Treasury Secretary Scott Bessent told reporters at the White House.

“We believe they will reconsider, and we are prepared to proceed if they are.”

A Ukrainian official was en route to Washington for the signing, but sources indicated that the US is urging Ukraine to sign two additional documents, which Kyiv considers premature.

Bessent asserted that the US had not attempted to modify the agreement reached over the weekend.

This agreement aims to provide the United States with access to Ukraine’s mineral resources, playing a vital role in Kyiv’s strategy to strengthen ties with US President Donald Trump and his administration, as Trump seeks a peace resolution in the ongoing conflict with Russia.

Two sources informed Reuters that the signing could still occur later on Wednesday. Earlier, Ukraine’s First Deputy Prime Minister Yulia Svyrydenko was confirmed to be traveling to the US to sign the agreement, as stated by the country’s prime minister.

A draft of the main minerals agreement, reviewed by Reuters, indicated that Ukraine had successfully negotiated the elimination of a clause requiring repayment to the US for past military aid—something Ukraine had strongly opposed.

Since Russia’s invasion in 2022, the US has been Ukraine’s largest military supporter, contributing over €64 billion ($72 billion) according to the Kiel Institute in Germany.

Trump reiterated on Wednesday that the US should receive compensation for past assistance to Kyiv, which aligns with efforts to secure access to Ukraine’s abundant rare earth minerals.

“I expect they will honor the deal. … We haven’t fully realized the benefits of that arrangement yet, but I suspect we will,” Trump remarked after a cabinet meeting on Wednesday.

Ukrainian officials are optimistic that signing the deal championed by Trump will bolster American support for Kyiv amidst the ongoing war, now in its third year.

The draft agreement would grant the US preferential access to new deals related to Ukraine’s natural resources, although it does not automatically provide Washington with a stake in Ukraine’s mineral wealth or its gas infrastructure.

“This is indeed a strategic agreement … a truly equitable and beneficial international agreement for joint investments in Ukraine’s development and reconstruction,” Prime Minister Denys Shmyhal stated.

The draft does not include specific security guarantees from the US, which was one of Ukraine’s initial ambitions. Separately, Ukraine has been discussing with European allies the establishment of an international force to ensure its security in light of a potential peace agreement with Russia.

Joint Fund

The minerals draft proposes the establishment of a joint reconstruction fund between the US and Ukraine, which would receive 50% of the profits and royalties generated from new natural resource permits granted to Ukraine.

The draft does not specify how the revenue from the fund will be utilized, who will benefit, or who will control spending decisions.

Shmyhal mentioned on television that once the primary agreement is signed, both parties will agree on two additional technical documents regarding details like fund administration.

He affirmed that Ukraine would maintain full control over its resources under the agreement, with the fund aimed at investing in Ukraine’s growth over the next decade.

“Ukraine will only contribute from new licenses and newly accrued royalties on mineral resources. This will constitute our contribution, 50% of which will go to this fund,” he explained.

Shmyhal added that the US might count future military assistance to Ukraine as part of its contribution to the fund, excluding prior aid.

The two nations signed a memorandum on April 18, marking the first step toward finalizing the minerals development agreement. The memo stated that both sides aimed to conclude their discussions by April 26 and finalize the agreement as soon as possible.

Trump and his administration have warned this month about potentially abandoning peace efforts between Russia and Ukraine unless clear progress is made soon.