A minerals deal between Ukraine and the United States could finally be signed as early as Wednesday after weeks of intense negotiations that at times turned bitter and temporarily derailed Washington’s aid to Ukraine.
Ukrainian Prime Minister Denys Shmyhal told Ukrainian television that the country’s economy minister Yulia Svyrydenko was on her way to Washington.
“We are finalising the last details with our American colleagues. As soon as all the final details have been finalised, I hope that the agreement will be signed in the near future, within the next 24 hours,” Shmyhal told the Ukrainian Telemarathon.
The US and Ukraine have been trying to hammer out the natural resources agreement that would give Washington access to Kyiv’s untapped mineral riches in exchange for investment since US President Donald Trump returned to the White House in January.
Ukraine’s President Volodymyr Zelensky was expected to strike the deal during his trip to Washington in February – but the agreement was left unsigned when that visit was cut short following the contentious Oval Office meeting.
Among the key sticking point of the negotiations was the question of security guarantees – and whether the US would provide them as part of the deal. Trump initially refused that, saying he wants Ukraine to sign the agrrement first and talk about guarantees later.
At that time, Zelensky described the draft agreement as asking him to “sell” his country. Ukrainian officials have since indicated they believed that US investment and the presence of American companies in Ukraine will make the US more interested in Ukraine’s security.
Shortly after the doomed White House visit, Trump ordered US aid to Ukraine to be suspended. While the assistance has since been restored, the episode became a major wakeup call for Ukraine’s European allies, who have pledged to step up their help to the country.
Trump has largely billed the agreement as Ukraine “paying back” for the aid the US has provided to Ukraine since Russia launched its unprovoked full-scale invasion of the country in February 2022.
The details of the agreement have not been made public. However, Shmyhal said on Sunday that the deal “will not include assistance provided before its signing.”
Speaking on Wednesday, Shmyhal described the deal was “a strategic agreement on the establishment of an investment partnership fund.”
“It is truly an equal and beneficial international agreement on joint investments in the development and recovery of Ukraine between the US and Ukrainian governments,” he added on Wednesday.
Under the deal, the US and Ukraine will create a joint investment fund in Ukraine with an equal contributions from both and equal distribution of management shares between them, Shmyhal said.
“The American side may also count new, I emphasise new, military aid to Ukraine as a contribution to this fund,” Shmyhal said.
The news of the deal being signed as early as Wednesday was first reported by Bloomberg and the Financial Times.
Mineral riches
Kyiv’s allies have long eyed the country’s mineral riches. Ukraine has deposits of 22 of the 50 materials classed as critical by the US Geological Survey.
These include rare earth minerals and other materials that are critical to the production of electronics, clean energy technologies and some weapon systems.
The global production of rare earth minerals and other strategically important materials has long been dominated by China, leaving Western countries desperate for other alternative sources – including Ukraine.
A memorandum of understanding prepared under the Biden administration last year said the US would promote investment opportunities in Ukraine’s mining projects to American companies in exchange for Kyiv creating economic incentives and implementing good business and environmental practices.
Ukraine already has a similar agreement with the European Union, signed in 2021.
This is a developing story.