- Ukraine and the US have reached an agreement on rare earth minerals.
- The deal could be signed as early as Friday.
- Ukrainian President Zelensky may meet President Trump to finalize it.
- The agreement includes joint ownership of proceeds from minerals, oil, and gas.
- Security guarantees were excluded from the deal, but discussions will follow.
Ukraine and the United States are close to finalizing an economic deal. This agreement will give access to Ukraine’s rare earth minerals. Three senior Ukrainian officials, who wished to remain anonymous, said the deal could be signed as early as Friday. They see the agreement as essential for strengthening US-Ukraine ties. Ukrainian President Volodymyr Zelensky plans to meet President Donald Trump to finalize the deal.
The deal will boost Ukraine’s economy by granting access to critical rare earth minerals used in global tech industries. Ukrainian officials are eager to see it completed. They believe the deal will secure continued US military support, which remains crucial in Ukraine’s ongoing conflict with Russia.
The Deal: Joint Ownership and Investment Terms
The framework of the deal involves joint ownership of a fund between Ukraine and the US. Ukraine will contribute 50 percent of future proceeds from its state-owned resources, including rare earth minerals, oil, and gas. This revised deal excludes a contentious proposal from the Trump administration, which would have required Ukraine to pay the US $500 billion as compensation for wartime aid.
President Trump described the deal as “a big deal,” noting that it could be worth a trillion dollars, though the exact figure remains unclear. He emphasized the strategic importance of rare earth minerals, which have numerous applications in both military and civilian technologies.
Officials stated that the deal also provides favorable investment terms for Ukraine. These amendments reflect Ukraine’s efforts to secure a better deal for its resources, which is considered a positive outcome. However, the technical details of the agreement are still being finalized.
No Security Guarantees Included in the Deal
A key point of contention throughout the negotiations was the issue of security guarantees. The agreement, as currently structured, does not include any direct security guarantees for Ukraine. This is a significant issue for Kyiv, especially given the ongoing conflict with Russia.
Earlier this month, Ukrainian President Zelensky had expressed objections to a proposal made by US Treasury Secretary Scott Bessent. Zelensky’s concerns were based on the fact that the proposal did not include security guarantees, which are seen as essential for Ukraine’s defense needs. These concerns were reiterated during a meeting with US Vice President JD Vance in Munich.
Despite these concerns, the two sides have made significant progress. Officials indicate that the issue of security guarantees is likely to be addressed in a separate discussion between President Zelensky and President Trump.
Diplomatic Tensions and Progress
The deal follows a period of sharp tension between President Trump and President Zelensky. Last week, Trump criticized Zelensky, calling him “a dictator without elections” and questioning his popularity. However, after a diplomatic visit to Ukraine by retired Lt. Gen. Keith Kellogg, Trump’s special envoy to Ukraine and Russia, the tone shifted.
Zelensky initially proposed the idea for this deal last fall. It was part of his broader strategy to strengthen Ukraine’s position in future negotiations with Russia. Access to rare earth minerals is key for Ukraine’s economic growth and its relationship with the United States.