Ukrainian President Volodymyr Zelensky expressed optimism on Wednesday over President Trump’s decision to meet with him before engaging in direct discussions with Russian President Vladimir Putin. As Zelensky readies for his upcoming visit to Washington on Friday, he is set to formalize an initial agreement on Ukraine’s mineral rights.
Under the terms of this arrangement, the United States will receive half of the revenue generated from the sale of Ukraine’s critical and rare-earth minerals. Zelensky revealed this information during a press briefing in Kyiv.
Despite the economic implications of the deal, it does not encompass security assurances. However, Zelensky stated his intention to ask Trump about his stance on continuing military support to Ukraine in its ongoing battle against Russian forces.
While the agreement’s framework could be officially endorsed by both leaders as early as Friday, an additional contract will be necessary to establish a sovereign wealth fund. The profits from this fund will be shared between Kyiv and Washington.
A preliminary version of the agreement, made public by the Financial Times on Wednesday, details the establishment of a joint Reconstruction Investment Fund. The document specifies that the United States will hold the “maximum percentage of ownership.”
According to the draft, Ukraine is expected to allocate 50% of the “future monetization of all relevant Ukrainian Government-owned natural resource assets” to the U.S. This includes critical materials such as minerals, natural gas, hydrocarbons, oil, and other extractable commodities.
In return, Washington is pledging long-term financial investment in Ukraine, with the goal of fostering economic stability and prosperity.
“Further contributions may be comprised of funds, financial instruments, and other tangible and intangible assets critical for the reconstruction of Ukraine,” the document states.
Additionally, the draft acknowledges key historical events, including Russia’s military incursion into Ukraine in February 2022 and Ukraine’s prior decision to relinquish its nuclear arsenal. It also underscores a mutual objective: achieving a “lasting peace” in the conflict between Russia and Ukraine.
“The United States of America and Ukraine wish to ensure that those States and other persons that have acted adversely to Ukraine in the conflict do not benefit from the reconstruction of Ukraine following a lasting peace,” the agreement affirms.
Ukraine is home to rare earth minerals essential for both civilian and military technologies. Estimates suggest these resources could be valued at up to $500 billion. However, industry analysts have cautioned that the financial benefits may not materialize immediately. It could take between five and seven years before Ukraine starts to see profits, as new geological surveys, mining operations, and processing facilities need to be developed.
Zelensky disclosed that his decision to sign the agreement was influenced by assurances that the deal would not be categorized as debt repayment—an idea Trump has frequently mentioned.
“I will not agree to even 10 cents [of debt],” Zelensky declared. “It’s not about not being grateful [for Biden-era aid] — we are.”
“The main thing was that we don’t owe anything to be reimbursed.”
Nevertheless, the draft reviewed by the Financial Times notes in its opening section that the joint fund is being established in acknowledgment of the United States’ financial support for Ukraine over the past three years.
{Matzav.com}