The US and Ukraine have reached an agreement on a draft minerals deal that could significantly impact both nations’ economies and geopolitical relations, reported Reuters, citing two sources familiar with the matter.
The deal, which is central to Ukraine’s efforts to gain support from the US, does not include US security guarantees or a commitment to the continued flow of weapons, according to sources familiar with the draft.
Ukrainian President Volodymyr Zelenskiy had refused to sign an earlier draft that granted the US rights to $500bn of Ukraine’s natural resources without adequate security guarantees.
Ukraine is rich in critical minerals, with reserves of graphite alone accounting for 20% of the global resources, a crucial element for electric vehicle batteries and nuclear reactors.
Under the proposed agreement, a Reconstruction Investment Fund will be established to reinvest revenues from Ukrainian minerals, hydrocarbons and other extractable materials.
Ukraine will contribute 50% of the revenue minus operating expenses up to $500bn. The US will commit to the long-term development of a stable and economically prosperous Ukraine, the report said.
One source stated that the future of weapons shipments is still under discussion between the two countries.
US President Donald Trump, who views the deal as compensation for US aid to Ukraine, mentioned the potential need for peacekeeping troops in Ukraine if a peace agreement is reached.
However, Russia, which invaded Ukraine three years ago, opposes the deployment of any NATO forces.
Trump’s approach to ending the war in Ukraine and his perceived alignment with Russia have raised concerns over possible US concessions to Russian President Vladimir Putin, which could undermine security in Ukraine and Europe, the report said.
The draft deal, which officials from both sides have advised should be signed, could unlock Ukraine’s vast mineral wealth for the US.
President Trump emphasised that the US taxpayer would benefit financially from the agreement. When asked about Ukraine’s benefits from the deal, Trump cited $350bn in previous US support and military equipment.
