Ukraine has agreed to a deal to turn over the revenue from some of its mineral resources to the United States, an American and a Ukrainian official said on Tuesday, after an intense pressure campaign from US president Donald Trump.
Terms of the agreement
The final details of the agreement, including the amount of money that Ukraine will pay the United States, are not yet known.
But a draft agreement discussed on Tuesday no longer included the demand that Ukraine contribute $500 billion to a fund owned by the United States. It also did not include a clause requiring Ukraine to pay back the United States twice the amount of any future US aid.
The Ukrainians became more comfortable with the deal in the past few days after the Americans removed some of the more onerous conditions.
The draft agreement said Ukraine would contribute to a fund half of its revenues from the future monetisation of natural resources, including critical minerals, oil and gas. The United States would own the maximum financial interest in the fund allowed under US law, though not necessarily all. And the fund would be designed to reinvest some revenues into Ukraine.
[ Zelenskiy set to sign rare minerals deal with WashingtonOpens in new window ]
Security guarantee
Ukrainian president Volodymyr Zelenskiy had repeatedly pressed for security guarantees for his country in exchange for mineral rights as Russia’s war has entered its fourth year. But draft agreements reviewed by The New York Times included no such security commitment.
Approval process
A final translated draft of the agreement was sent to Ukraine on Tuesday, according to the American official.
Treasury secretary Scott Bessent and his Ukrainian counterpart, the American official said, are expected to sign the agreement first, and then Zelenskyy is expected to go to Washington for a signing with Trump.
What’s at stake?
Ukraine controls more than 100 major deposits of critical minerals, according to a study by the Kyiv School of Economics, along with modest oil and natural gas reserves.
Titanium is used in construction, aeroplanes, orthopaedic implants and as an additive in paint and cosmetics, including sunscreen, among many other things. Titanium mines in central Ukraine account for about 6 per cent of global production, according to Ukrainian media.
Lithium is a crucial element in batteries, including those in electric vehicles, and in other industrial products, including some medications. Ukraine has a third of Europe’s total reserves, although some sites are in war-contested areas. Before the war with Russia, Ukrainian officials suggested to Elon Musk that he invest in Ukrainian lithium mines.
Uranium is used in nuclear power plants and nuclear weapons. Ukraine has the largest uranium reserves in Europe.
Rare earths are a group of more than a dozen metals, much less abundant than titanium or lithium, that are used in many high-tech sectors, including green energy, electronics and aerospace. Ukraine has substantial reserves that are mostly untapped, and it is unclear how expensive they would be to extract.
– This article originally appeared in The New York Times.
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