Trump and Zelenksy in Paris. Credit: Shutterstock, Frederic Legrand – COMEO
Ukraine and the United States (U.S) have reportedly reached an agreement on developing Ukraine’s mineral resources. The agreement aims to bolster bilateral relations and support Ukraine’s post-war reconstruction – which is approximately $524 billion (€503.7 billion), as reported by The Kyiv Independent.
The deal, finalised on February 24, according to The Financial Times, follows extensive negotiations addressing both nations’ interests.
Key terms of the Ukraine-U.S minerals agreement
The finalised agreement establishes a fund into which Ukraine will contribute 50 per cent of proceeds from the future monetisation of state-owned mineral resources, including oil and gas. This fund is allocated to invest in projects within Ukraine, focusing on economic development and infrastructure. Notably, the deal excludes resources that already contribute to Ukraine’s state budget, such as operations by Naftogaz and Ukrnafta, the country’s largest oil and gas producers. This exclusion ensures that existing revenue streams remain unaffected. Additionally, earlier U.S. demands for a $500 billion claim over Ukraine’s natural resources have been dropped.
Despite Kyiv’s initial insistence, the agreement does not include explicit security guarantees from the U.S. Ukrainian officials had hoped to secure such assurances to bolster the nation’s defense capabilities amid ongoing regional tensions. The omission of these guarantees indicates a focus on economic collaboration over military commitments in this particular deal.
Ukraine’s President Volodymyr Zelensky is expected to travel to Washington in the coming weeks for a formal signing ceremony with President Donald Trump. This event will symbolise a significant step forward in U.S-Ukraine relations, emphasising mutual commitment, although ‘the negotiations around the deal have fuelled tensions between U.S. President Donald Trump and Zelensky in the past week,’ as reported by The Kyiv Independent.
Following the signing, both nations will work on follow-up agreements to detail the U.S stake in the fund and the terms of joint ownership, ensuring clarity and mutual benefit in the partnership.
U.S-Ukraine agreement and its impact on the EU
For expats and locals within the European Union (EU), this agreement signifies a potential lead to increased trade and investment opportunities between Ukraine and EU member states.
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