After weeks of negotiation and disagreement, the United States and Ukraine are nearing the finalization of a major minerals agreement that could reshape the future of both nations’ economic and geopolitical standing. The deal centers on Ukraine’s vast reserves of critical minerals, vital for the production of advanced technologies like electric vehicles and smartphones.
According to a report by Axios, sources familiar with the negotiations revealed that after President Volodymyr Zelensky rejected an initial draft of the agreement, the Trump administration provided an updated version to address Ukraine’s concerns. This came amid rising tensions between the two countries, with President Trump criticizing Zelensky for his rejection of the deal, calling him a ‘dictator’ who had ‘chosen war with Russia.’ In return, Zelensky accused Trump of promoting Russian ‘disinformation.’
Despite the tensions, the revised agreement appears to be a step forward. “There has been significant improvement in the recent draft, and it aligns with Ukrainian law,” one source told Axios, indicating that both sides are moving closer to a resolution.
National Security Advisor Mike Waltz also urged Ukraine to engage further on the issue. “Ukraine wants to negotiate minerals, so we are talking about it,” a White House official told reporters, highlighting the US interest in securing access to Ukraine’s vast rare earth mineral deposits, which are estimated to be worth trillions of dollars.
The proposed agreement would see the US receive a 50% share of the revenue from mining operations, with the jurisdiction of the deal falling under New York courts. This arrangement caused friction during earlier discussions, with Ukrainian officials concerned that it could undermine existing trade agreements and provide insufficient security guarantees. Zelensky, in particular, faced resistance from his government, as the deal would require parliamentary approval under Ukrainian law.
During a meeting at the Munich Security Conference, Zelensky explained that, according to Ukraine’s constitution, such an agreement would need parliamentary consent before it could be finalized. This was news to US officials, who were not previously informed of these legal requirements, as stated by a senior official in the Trump administration.
Despite these challenges, both sides are working to move forward. “We proposed a partnership with Ukraine to co-invest in its economy and natural resources. This is the best security guarantee they can hope for,” Waltz said, highlighting the strategic importance of the deal, which he believes offers Ukraine more than just military support.
In recent talks in Kyiv, US envoy Keith Kellogg discussed the mineral agreement as well as Ukraine’s broader security concerns and the return of prisoners of war. After the meeting, Zelensky issued a statement expressing Ukraine’s readiness to cooperate with the U.S. on the deal. “We are ready for a strong, effective investment and security agreement with the President of the United States,” he said.
