Ukraine agrees to terms of critical minerals deal with US, sources say

Ukraine and the United States have reached terms on a critical minerals agreement. A senior Ukrainian official stated that the agreement could be signed by Ukrainian President Volodymyr Zelenskyy during his visit to Washington, D.C. The agreement aims to jointly develop Ukraine's mineral resources, with the proceeds going into a newly established fund that will be "jointly owned by Ukraine and the United States."

According to a senior Ukrainian source who wished to remain anonymous, the draft agreement mentions "security" issues but does not explicitly stipulate the commitments that the United States should fulfill, which was one of Kyiv's previous requirements for reaching an agreement. The source said that the agreement includes a general clause stating that the United States will invest in a stable, prosperous, and sovereign Ukraine, committing to lasting peace and supporting efforts to guarantee security.

It is understood that the United States and Ukraine will jointly own the revenue fund, with Ukraine contributing 50% of future earnings from its state-owned resources, including minerals, oil, and gas. The agreement does not include security guarantees, but an official stated that the two presidents will discuss the issue during their meeting. Previously, Ukraine had requested security guarantees from the United States as part of the agreement.

The Trump administration proposed obtaining a 50% share of Ukraine's critical minerals, including graphite, uranium, titanium, and lithium, with lithium being a key component of electric vehicle batteries. Experts point out that Trump's focus on rare earth minerals, rather than agricultural products or other resources, is because they are of significant value to the U.S. defense and security industries and provide leverage for the U.S. in its resource competition with China. For Trump's supporters, Trump's demand for an agreement on Ukraine's rare earth minerals is a strong move, ensuring that the U.S. does not provide military or other aid without something in return.

A former U.S. ambassador to Ukraine stated that the mineral agreement has significant geoeconomic and geopolitical implications for the United States, Ukraine, and their allies. Ukraine possesses vast oil and gas and critical mineral resources, which would make it a more reliable supplier for the United States. The agreement will also advance Trump's goal of ending the war in Ukraine, providing him with a concrete reason to seek a stable end to Moscow's war in Ukraine as soon as possible.