Ukraine and the United States have reached an agreement on a critical minerals deal, marking a significant development in their economic and strategic partnership. The deal, which is expected to be signed by Ukrainian President Volodymyr Zelenskyy and U.S. President Donald Trump during Zelenskyy’s upcoming visit to Washington, D.C., aims to allow joint development of Ukraine’s mineral wealth. Revenues from these resources will be directed into a newly created fund that will be shared by both nations.
The agreement follows months of negotiations after Trump’s administration insisted that Ukraine compensate the U.S. for the billions of dollars in military and financial aid it received during its war with Russia under former President Joe Biden. Trump, who has sought to reduce U.S. financial commitments abroad, sees the minerals deal as a way to ensure that Washington benefits economically from its support of Kyiv.
Rare Earth Minerals: A Prize for the U.S.
Ukraine is home to vast reserves of critical minerals, including lithium, titanium, graphite, and uranium. These resources are vital for industries ranging from defense and aerospace to energy storage and electronics. The U.S. has been seeking ways to reduce its reliance on China, which dominates global supply chains for rare earth minerals, processing nearly 90% of the world’s supply.
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Experts note that securing access to Ukraine’s mineral wealth would provide Washington with a reliable alternative to Chinese and Russian suppliers. Given Ukraine’s substantial untapped reserves, the deal could help bolster U.S. competitiveness in critical sectors, particularly as demand for rare earth elements continues to rise.
Security Guarantees Still Unclear
One of Kyiv’s key demands during negotiations was a clear commitment from the U.S. to Ukraine’s long-term security. However, while the agreement references U.S. investments in Ukraine’s stability and sovereignty, it does not explicitly outline security guarantees.
“There is a general clause that says America will invest in a stable and prosperous sovereign Ukraine, that it works for a lasting peace, and that America supports efforts to guarantee security,” a senior Ukrainian official told AFP. However, the official acknowledged that the final text of the deal does not detail specific security measures.
Sources suggest that Trump and Zelenskyy may discuss security provisions further during their meeting in Washington. Trump has previously expressed skepticism about providing Ukraine with indefinite U.S. military assistance, instead suggesting that European nations should take on a greater role in securing peace in the region.
Geopolitical and Economic Implications
Beyond its economic significance, the minerals deal carries important geopolitical consequences. By securing long-term access to Ukrainian resources, the U.S. is not only reducing its dependence on China but also strengthening its strategic foothold in Eastern Europe.
Former U.S. Ambassador to Ukraine John Herbst emphasized that the agreement aligns with broader American interests in countering Russian and Chinese influence. “The Russians have played hardball with their oil and gas exports, using energy as a political weapon. The Chinese have done the same with their dominance over rare earth minerals,” Herbst explained. “Ukraine offers an opportunity for the U.S. to diversify its supply chain and establish a more reliable partnership.”
The deal could also impact ongoing peace efforts between Ukraine and Russia. Trump has previously signaled his intention to push for a rapid resolution to the conflict, recently stating that he believes Russian President Vladimir Putin “wants to settle it and get back to life.” He has also suggested that European peacekeeping forces could play a role in stabilizing the region—though Moscow has repeatedly rejected any NATO presence near the front lines.
Tensions Between Trump and Zelenskyy
The upcoming signing of the minerals agreement comes amid a tense backdrop of strained relations between the two leaders. Last week, Trump publicly criticized Zelenskyy, calling him an “unpopular dictator” and suggesting that he should negotiate a peace deal with Russia as soon as possible. Zelenskyy, in turn, accused Trump of being influenced by a “disinformation bubble” and questioned his understanding of the realities of the war.
Despite these verbal clashes, the deal underscores a continued, albeit transactional, relationship between Washington and Kyiv. While Trump has pushed for a reduced financial burden on the U.S., Zelenskyy remains eager to secure continued American support in some form, particularly as Ukraine faces economic and military uncertainty.
Next Steps: Washington Visit and Deal Finalization
Zelenskyy is scheduled to travel to Washington later this week to finalize the agreement. While Ukrainian officials are still working on the finer details, the broad framework of the deal has been settled. The U.S. and Ukraine will have joint ownership of the revenue fund, with Ukraine expected to contribute 50% of proceeds from its state-owned resources, including minerals, oil, and gas, in the future.
However, the lack of direct security guarantees in the agreement remains a sticking point for some Ukrainian officials, who worry that without clear military commitments, Ukraine’s long-term stability could be at risk. The discussions between Zelenskyy and Trump during their Washington meeting may shed more light on whether additional security assurances could be included in future agreements.
For now, the deal marks a significant shift in U.S.-Ukraine relations, redefining the terms of American support while reinforcing Ukraine’s strategic importance in global resource markets. Whether the agreement will lead to deeper economic collaboration or expose new political tensions remains to be seen.
