Ukraine and U.S. Reach New Agreement on Mineral Resource Sharing Amid Ongoing Conflict

Amid ongoing conflict, Ukraine has negotiated a deal to transfer a portion of its mineral revenues to the U.S., dropping prior demands for significant financial contributions. Key terms and implications remain under discussion.

Ukraine has reached a significant preliminary agreement that would allow the United States to control a share of its mineral revenue as the conflict with Russia continues. Key aspects of this arrangement, revealed on Tuesday by officials from both nations, highlight a shift in negotiations led by President Trump who had previously imposed rigorous financial demands on Ukraine.

While the exact financial contributions remain unclear, the draft discussed on Tuesday marks a notable departure from earlier terms. Ukraine is no longer required to pay $500 billion to a U.S.-owned fund, nor is there a condition mandating repayment of twice as much as any future American assistance. The agreement now stipulates that Ukraine will allocate half of its earnings from the future extraction and sale of vital natural resources—including critical minerals, oil, and gas—to this fund. The U.S. would have the highest financial stake allowed under American law in this arrangement.

As Ukraine's President Zelensky emphasized the need for security assurances amid the ongoing war, initial drafts of the agreement lacked such protections. The final version, which was translated and sent to Ukraine on Tuesday, is anticipated to be signed by Treasury Secretary Scott Bessent alongside his Ukrainian counterpart, paving the way for an official signing event likely to involve President Trump and Zelensky in Washington.

Mineral wealth is a crucial element in this deal, with Ukraine boasting over 100 significant deposits of vital minerals, found in a report by the Kyiv School of Economics. Metals like titanium play an important role in a variety of industries including construction and aerospace, and Ukraine reportedly contributes about 6% of global titanium production. Lithium, of which Ukraine holds a substantial portion of Europe’s reserves, is essential for batteries, particularly for electric vehicles.

Furthermore, Ukraine possesses the richest uranium reserves in Europe and numerous untapped rare earth minerals, crucial for high-tech industries and green energy. Local reports have suggested that the conflict has impacted operations at many of these sites.