US and Ukraine reach mineral deal as compensation for military aid in war with Russia

President Volodymyr Zelensky's office confirmed that Ukraine reached an agreement with the United States on mining strategic minerals, according to media outlet Kyiv Independent.

Key terms of the agreement

The pact creates a special fund into which Ukraine will deposit 50% of the future revenues from mining its state-owned mineral resources, such as oil and gas. However, assets that already contribute to the national budget are excluded, leaving out Naftogaz and Ukrnafta, the country's main energy sector companies.

The agreement does not include security guarantees from the U.S., a point Ukraine sought from the beginning of the negotiations. Still, according to reports, Kyiv managed to remove a clause that gave Washington rights to $500 billion in Ukrainian resources.

Ukraine's cabinet of ministers is expected to recommend signing the agreement on Feb. 26. However, a senior Ukrainian official said the signing could be finalized on Feb. 28, according to the Financial Times. Zelensky could also travel to Washington in the coming weeks to formalize the pact at an official ceremony.

In the meantime, subsequent agreements will define details on the U.S. participation in the fund and the "joint ownership" structure. The current version states that management of the fund will be shared, but Washington will have the authority to make decisions under its own laws.

An agreement with bilateral benefits

Trump has presented this agreement as a mechanism to strengthen the Ukrainian economy while allowing the U.S. to recoup some of the billions of dollars and military equipment sent to Ukraine in recent years.

Tensions in negotiations between Trump and Zelensky

The negotiations were not without tensions. Initially, Zelensky rejected a proposal to grant the U.S. 50% of the revenues from mining strategic resources such as aluminum, gallium, and titanium, which are fundamental for advanced technologies and military applications. With this, Washington reformulated the offer to achieve a more equitable share.

According to National Security Advisor Mike Waltz, the Ukrainian leader's initial refusal generated frustration among senior U.S. officials, intensifying the tension in the bilateral relationship.

The differences became more evident when Zelensky questioned Trump, prompting a harsh response from the U.S. president, who accused him of having "started" the war. In response, Zelensky called Trump's statements part of a "web of disinformation." Hours later, Trump posted on Truth Social that the Ukrainian leader was an "unelected dictator" who was doing a "terrible job."

Despite these disagreements, the two countries have made progress in forming an agreement to generate bilateral benefits.