Exclusive Radio Free Europe: Details of the U.S.-Ukraine Mineral Agreement

The Presidents of the United States and Ukraine are set to sign an agreement for the exploitation of mineral resources in Ukraine, which has been in the headlines recently; an important agreement that comes amidst intense diplomatic efforts to end the three-year extensive war of Russia against Kyiv. Volodymyr Zelensky is traveling to Washington on Friday, March 1, to meet with Donald Trump for this purpose. A version of this agreement obtained by Radio Free Europe/Radio Liberty shows that many key questions remain unanswered and coordination of details has been postponed to the future. Key points of the Ukraine-U.S. agreement include: Lack of security guarantees: The agreement supports Ukraine's efforts to receive security guarantees but does not provide such guarantees itself. Extraction of natural resources: Ukraine and the U.S. will jointly develop Ukraine's natural resources, including rare minerals, oil, and gas. Reconstruction fund: 50% of the revenue from Ukrainian resources under government control will be deposited into a joint fund. Reinvestment: Profits from this fund's financial resources will be reinvested in Ukraine's economic reconstruction 'at least once a year.' Unclear details: Details regarding the ownership and management of this fund will be negotiated in the future. This agreement does not include specific security guarantees from the United States for Ukraine, which is one of Kyiv's main demands. Additionally, it is unclear whether the U.S. will continue to supply military equipment and ammunition to Ukraine. The signing of this agreement between Kyiv and Washington is planned while Vladimir Putin has also proposed to Donald Trump to cooperate in the extraction of rare metals, including in territories of Ukraine occupied by Russian forces. The text of this agreement begins by stating that Washington 'has provided significant financial and material support to Ukraine since the extensive Russian invasion.' However, there is no mention in this agreement of the previous demand from the Trump administration for $500 billion from the potential revenues generated by the extraction of Ukraine's mineral resources; a clause that was included in a previous draft of this agreement. Volodymyr Zelensky, the President of Ukraine, has repeatedly called this demand unacceptable. The agreement does not include specific security commitments from the U.S. but emphasizes that the United States 'supports Ukraine's efforts to obtain security guarantees.' It also notes that Washington 'is committed to long-term financial support for the development of a stable and economically prosperous Ukraine.' Aside from these general statements, the main text of the agreement relates to the establishment of an investment and reconstruction fund that will be jointly managed by the U.S. and Ukraine. Ukraine has agreed to deposit 50% of future revenues generated from the exploitation of natural resources under government control into this fund. These natural resources include minerals, oil, and gas, as well as income related to the activities of liquefied natural gas terminals and ports. The text of the agreement explicitly states that 'this future income does not include income currently deposited into the public budget of the Ukrainian government.' According to the document, the financial resources of this fund will be reinvested in Ukraine 'at least once a year.' Many details of this agreement are still unclear. The bill of this document states that such matters will be coordinated in a future agreement. It has been agreed that working groups will 'immediately' begin negotiations on this future agreement. The ownership structure of the fund is among the important issues that remain unclear. At the same time, it is implicitly suggested that the financial resources of this fund will likely not be 50-50. Additionally, details regarding the management and operation of this fund have not yet been determined. According to the existing document, neither party can 'sell, transfer, or otherwise assign any part of the financial resources subject to this investment and reconstruction fund without the agreement of the other party.' In other words, neither country can unilaterally withdraw from this agreement. This agreement requires approval from the Verkhovna Rada, the Ukrainian parliament, but there is no mention of its approval in the U.S. Congress. Bohdan Kytak, a member of the Ukrainian parliament from the ruling party, told Radio Free Europe/Radio Liberty that the agreement with the U.S. could have 'potential benefits' for Ukraine's economy. He emphasized that U.S. investment could create 'a new economy' for Ukraine, adding that 'this agreement requires scientific research and new technologies, and many experts need to work in this area.' Oleg Ustenko, a former economic advisor to Volodymyr Zelensky, stated in an interview with Radio Free Europe/Radio Liberty that 'this agreement is more symbolic than financial-economic.' Achieving this agreement could be seen as a political victory for Donald Trump, the President of the United States; he has exerted significant pressure to achieve this agreement and has now obtained it. However, it is still unclear what impact this agreement will have on the political situation of Volodymyr Zelensky, the President of Ukraine. For Zelensky's position, the main challenge will be over the details. Nonetheless, this agreement could somewhat reduce the intensity of the bitter and public disputes that led Trump to call him a 'dictator.'