Ukrainian President Volodimir Zelenski has recently expressed significant concerns regarding a new draft agreement proposed by the United States for the exploitation of Ukraine's mineral resources. Speaking to the press in Kyiv on March 28, 2025, Zelenski emphasized that the new proposal is "completely different" from the previous version and necessitates a thorough evaluation by legal experts in Ukraine before any decision is made to sign the document.
Zelenski made it clear that he would not accept any agreement that threatens Ukraine's aspirations for European Union membership. The draft received from Washington includes "many things that were not discussed before and some that were rejected," he noted, indicating a need for careful scrutiny.
One of the most contentious aspects of the agreement is the stipulation that Ukraine will not recognize the aid received from the US since the onset of the war with Russia as loans. This position is particularly pertinent as the new proposal appears to seek the recovery of US aid provided to Ukraine under the previous administration of President Joe Biden, which was initially offered as donations.
Back in October 2024, Zelenski had initially floated the idea of partially ceding Ukraine's mineral resources to Western allies, outlining a so-called "victory plan" in the ongoing conflict with Russia. A critical condition for this cession involves securing guarantees that would deter any future Russian aggression against Ukraine following a potential ceasefire.
Former President Donald Trump has shown a keen interest in accessing these coveted resources, suggesting that it could serve as a form of compensation for the aid extended to Ukraine during the war. After a series of negotiations fraught with misunderstandings—largely stemming from Trump's reluctance to offer Ukraine security guarantees in exchange for preferential access to its mineral resources—Washington and Kyiv eventually reached an agreement. This agreement would allow the US to gain access to Ukrainian mineral resources, while also establishing a joint US-Ukrainian fund aimed at financing post-war reconstruction efforts.
The signing of this agreement was initially scheduled for Zelenski's visit to Washington on February 28, 2025, but was postponed following a public dispute between Zelenski and Trump during their meeting at the White House. However, relations between the two leaders appear to have improved, prompting Washington to send Kyiv a revised draft agreement.
According to a draft reviewed by Reuters, the new terms would require Ukraine to remit all profits generated from a fund controlling its resources back to Washington until Kyiv repays all US aid received during the war, plus interest. This has drawn significant backlash from both Ukrainian lawmakers and the media, with many describing the updated agreement as "unacceptable."
Ukrainska Pravda reported that "Trump's team has abandoned all compromise solutions agreed a month ago," and characterized the new document as crossing "almost all of Ukraine's red lines," effectively stripping the country of part of its sovereignty and obligating it to reimburse all US aid received.
Moreover, the new draft does not offer any security guarantees for Ukraine, mirroring the deficiencies of the previous version. Resources that Trump is eyeing are largely located in deposits that have not yet been developed, are challenging to extract, require substantial investment, or are currently under Russian control in occupied Ukrainian territories.
On the other hand, Russian President Vladimir Putin has expressed support for American investments aimed at exploiting these resources in regions of Ukraine now controlled by Russian forces. This adds another layer of complexity to an already fraught situation.
The Trump administration's new proposal, as reported by various sources, signifies a substantial revision and expansion of their initial offer. The updated agreement lacks security guarantees for Ukraine but compels the country to funnel all revenues from its natural resources into a joint investment fund. This stipulation targets both state and private enterprises operating within Ukraine.
Scott Bessent, the US Treasury Secretary, has been leading the new negotiations on behalf of the United States. However, he has not commented publicly on the details of the negotiations. Notably, the proposal does not address the potential takeover of Ukraine's nuclear power plants by the US, a topic that has previously sparked considerable debate.
Trump has articulated that a minerals agreement could pave the way for a peace deal, providing the United States with a financial stake in the region. He has also framed the agreement as a means for America to recoup some of the tens of billions of dollars allocated to Ukraine in financial and military aid throughout the conflict.
An earlier iteration of the agreement had proposed the establishment of a joint investment fund, wherein Ukraine would contribute 50% of the revenues from future profits derived from the extraction of state-owned natural resources. This earlier version also set the terms for collaborative investment in Ukraine's mineral resources between the US and Ukraine.
As the situation unfolds, the Ukrainian government faces a critical juncture. The balance between securing necessary foreign aid and maintaining national sovereignty is a delicate one. The stakes are high not only for Ukraine’s immediate future but also for its long-term aspirations within the European community.
In a time of uncertainty and conflict, the decisions made in the coming weeks regarding the proposed agreement will undoubtedly shape the geopolitical landscape of Eastern Europe for years to come.
