Kyiv has reached an agreement with Washington on a minerals deal that Ukrainian officials believe will strengthen ties with the Trump administration and lay the groundwork for a long-term U.S. security partnership.
According to Ukrainian officials, Kyiv is prepared to sign the deal for joint development of its mineral resources, including oil and gas, after the U.S. withdrew its demand for a claim to $500 billion in potential revenue from the resource exploitation.
“The minerals agreement is only part of the picture. We have heard multiple times from the U.S. administration that it’s part of a bigger picture,” Olha Stefanishyna, Ukraine’s Deputy Prime Minister and Justice Minister who has been leading the negotiations, informed the Financial Times on Tuesday.
The initial draft of the agreement included stringent terms that former President Donald Trump framed as a way for Ukraine to repay the U.S. for military and financial aid provided since Russia’s full-scale invasion in 2022. These conditions sparked outrage in Kyiv and across European capitals.
After President Volodymyr Zelenskyy rejected the draft last week, Trump labeled him a “dictator” and seemed to suggest that Ukraine was responsible for starting the war.
According to the final version of the agreement dated February 24, seen by the Financial Times, a fund will be created into which Ukraine will contribute 50% of the proceeds from the “future monetization” of state-owned mineral resources, including oil, gas, and related logistics.
The fund will be used to invest in projects within Ukraine.
According to Financial Times, it excludes mineral resources that already contribute to the Ukrainian government’s revenue, meaning it would not apply to the existing activities of Naftogaz or Ukrnafta, Ukraine’s largest gas and oil producers.
The reported noted that the agreement between Kyiv and Washington has notable omissions, including any mention of U.S. security guarantees that Ukraine had initially demanded in exchange for its cooperation.
In addition, crucial details, including the scale of U.S. investment in the fund and the specifics of “joint ownership” arrangements, are yet to be finalized in future agreements.
The Trump administration’s original proposal outlined a reconstruction investment fund in which the U.S. would “maintain 100 percent financial interest.” Under this plan, Ukraine would contribute 50 percent of the fund’s revenues generated from mineral resource extraction, including oil, gas, and related infrastructure, with a cap set at US$500 billion.
