Ukraine and the United States have agreed on the terms of a “preliminary” mineral resources agreement that would grant the United States access to Ukraine’s valuable mineral resources. Ukrainian President Volodymyr Zelenskyy expressed hope that the deal would open the door to a broader agreement in the future. However, he confirmed that no security guarantees had yet been finalized.
What are the main terms of the contract?
The main terms of the agreement have not yet been disclosed, but on Wednesday, Ukrainian Prime Minister Denys Shmyhal announced that the United States and Ukraine had finalized a draft agreement.
"This preliminary agreement includes the creation of an 'Investment Fund', which will be used to reconstruct Ukraine," Shamikhal told Ukrainian television.
He added that the fund would be jointly managed by Ukraine and the United States, with “Ukraine contributing $501.3 trillion in revenue from its state-owned mineral resources, oil and gas to the fund, which would then be spent on the reconstruction of Ukraine.”
Debate over security guarantees
Zelensky had sought security guarantees from the United States during negotiations on the deal, but on Wednesday he said no such guarantees had yet been included in the deal.
"I want the agreement to include a security guarantee clause. This is important," he said.
In a BBC interview, he said that if Trump does not agree to security guarantees for Ukraine, he will withdraw from the agreement, in response to a question about whether he will do so, he said, “I want to find a way out of NATO, or at least an alternative security agreement. If we do not get security guarantees, then there will be no ceasefire, nothing else will work.”
On the other hand, US President Donald Trump has said that the United States will not provide direct security guarantees to Ukraine.
“We do not want to provide additional security guarantees for Ukraine,” he said. “That is Europe’s responsibility,” he added, adding, “The presence of American workers in Ukraine will serve as an automatic security guarantee.”
US wants to get money back in exchange for mineral resources
“The United States has given Ukraine between $1.4 trillion and $1.4 trillion in aid and wants it back,” Trump said Tuesday.
However, the German think-tank “Kiel Institute” says that the United States has so far provided Ukraine with $$119 billion in aid.
As part of this repatriation plan, Trump is seeking a deal to use Ukraine's mineral resources. "We will give Ukraine the right to continue fighting in exchange for mineral resources and provide weapons and ammunition until a deal is made with Russia," he said.
Ukraine and the United States clash over the terms of the agreement
Conflict has arisen in recent weeks between Ukraine and the United States over the terms of the initial agreement.
Initially, the United States sought rights to Ukraine's $1.45 trillion mineral resources, which Zelensky rejected. However, this demand has been dropped after recent negotiations.
A Ukrainian government official told the BBC, “The terms of the agreement are now much better for Ukraine.”
What is the future?
Prime Minister Shamil said the deal will be finalized only when Zelensky and Trump agree on security guarantees and determine how the deal can be integrated into US security policy.
Meanwhile, Trump said, “Russia is willing to accept a European peacekeeping force in Ukraine,” but the Russian Foreign Ministry has not yet made any official comment on the matter.
The mineral resources agreement between Ukraine and the United States is not only an economic one, but also a diplomatic and military security issue. The United States wants money back in exchange for Ukraine's valuable mineral resources, but Ukraine wants security guarantees. This is still an unresolved issue as the terms of the agreement have not been finalized.
Zelensky favors further negotiations on the terms of the agreement, especially to finalize security guarantees. Trump, on the other hand, is prioritizing the economic aspect and asking Europe to take responsibility for Ukraine's security.
Whether this agreement will ultimately be implemented, or to what extent it will ensure Ukraine's sovereignty and security, will depend on the discussions over the next few weeks.
