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American Focus > Blog > Economy > Ukraine agrees US minerals deal after Washington drops toughest demands
Economy

Ukraine agrees US minerals deal after Washington drops toughest demands

Last updated: February 25, 2025 10:44 am
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Ukraine agrees US minerals deal after Washington drops toughest demands
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The recent agreement between Kyiv and Washington on a minerals deal has sparked hope for improved relations between Ukraine and the Trump administration. The deal, which focuses on jointly developing Ukraine’s mineral resources such as oil and gas, has been seen as a way to strengthen the relationship between the two countries and secure a long-term US security commitment.

Initially, the terms of the agreement included demands for a right to $500bn in potential revenue from the exploitation of Ukraine’s resources, which caused outrage in Kyiv and other European capitals. However, after negotiations, the final version of the agreement no longer includes these onerous terms. Instead, Ukraine would contribute 50% of proceeds from the future monetization of state-owned mineral resources to a fund that would invest in projects within Ukraine.

While the deal does not include US security guarantees that Kyiv had hoped for, it does open the door for further discussions and agreements. Ukrainian officials have expressed optimism about the potential for President Zelenskyy to visit the White House for a signing ceremony with President Trump in the near future.

The agreement, described as a framework agreement, still has some details to be ironed out, including the jurisdiction of the agreement and the size of the US stake in the fund. Approval from Ukraine’s parliament will also be required, with opposition MPs signaling a potential heated debate before ratification.

Overall, the minerals deal between Kyiv and Washington represents a significant step towards strengthening ties and securing Ukraine’s future after years of conflict. It remains to be seen how the agreement will unfold and what impact it will have on the broader relationship between the two countries.

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