In a significant development, Ukraine has expressed its firm stance against the newly proposed terms of a resource agreement with the United States, which could have far-reaching implications for its sovereignty and European Union aspirations. According to a report by The Wall Street Journal, the Ukrainian government is almost certain to reject the new deal, as it aims to fulfill President Donald Trump's demand for compensation for billions in military and financial assistance provided to Ukraine.
The newspaper's report highlights a shift in the U.S. administration's approach since early February 2025, when the focus was primarily on gaining access to Ukraine's rare earth metals. Now, the U.S. seeks to profit from Ukraine's economic projects in various sectors, including metals, oil, gas, and infrastructure developments such as ports and pipelines. This change has raised alarm bells in Kyiv, where officials believe the new agreement could undermine Ukraine's sovereignty and contradict its ambitions for EU membership.
Ukrainian President Volodymyr Zelensky has been vocal about his concerns, stating that any deals regarding mineral extraction that threaten Ukraine's integration into the EU will not be accepted. "It is too early to assess the expanded agreement on mineral resources proposed by the United States," Zelensky remarked during a press conference on March 28, 2025. He emphasized the need for Ukrainian lawyers to thoroughly evaluate the proposal before he could provide a detailed response.
Additionally, Zelensky pointed out that Ukraine does not recognize the billions of dollars in previous U.S. aid as loans, which adds another layer of complexity to the negotiations. He described the latest draft of the agreement as "completely different" from the earlier framework that he intended to sign with Trump. "There are many things in the new version of the agreement that were not discussed before. In addition, there are also some things that the parties have not previously agreed on," he said.
The proposed agreement, which spans 55 pages, reportedly includes provisions that would grant the U.S. unprecedented control over Ukraine's natural resources through a joint investment fund. This fund would require Kyiv to contribute all income from the exploitation of natural resources managed by both state and private enterprises. Furthermore, the U.S. would have priority in purchasing extracted resources and would seek the return of all assistance provided to Ukraine since 2022, with an additional interest rate of 4% per year.
The joint investment fund is set to be managed by the U.S. International Development Finance Corporation and would consist of a council of five members, three appointed by the U.S. and two by Ukraine. The funds from this investment would be converted into foreign currency and transferred abroad, raising concerns among Ukrainian officials about the long-term implications for national resources.
Initially, the U.S. aimed to finalize the mineral agreement with Ukraine on February 28, 2025, but the signing was postponed following a heated dispute between Zelensky and Trump at the White House. The original terms suggested that Ukraine would contribute 50% of its revenue from future resource exploitation, including oil and gas, to the joint fund.
In a related context, Ukraine has also recently agreed with the United States on terms for an "energy truce," which aims to halt Russian attacks on specific energy facilities. The Ukrainian Ministry of Energy reported that the list of facilities includes electrical power complexes, oil and gas complexes, the nuclear and coal industries, and energy equipment production. However, the list published by the Russian side reportedly does not include Ukrainian oil and gas production facilities, which have been targeted more frequently by Russian forces.
This partial ceasefire agreement highlights the ongoing conflict's impact on Ukraine's energy infrastructure and the complexities of negotiating terms with both the United States and Russia. The Ukrainian government is navigating a precarious situation, balancing the need for military support from the U.S. while ensuring that its sovereignty and future integration into the EU are not compromised.
As the situation continues to evolve, the Ukrainian leadership remains cautious. Zelensky stated that he would consider the agreement once there are no legislative threats and after Ukrainian lawyers have compared all versions of the text to provide a thorough assessment.
In summary, the ongoing negotiations between Ukraine and the United States regarding resource extraction agreements are fraught with challenges. The potential implications for Ukraine's sovereignty, economic stability, and future integration into the EU are significant, and the Ukrainian government is taking a firm stand against any terms that could jeopardize its national interests.
