Ukraine And U.S. Near Final Deal On Natural Resources

Kyiv and Washington have been negotiating a deal on natural resources, which has sparked tension between the two governments. The discussions started at the beginning of the month, with the U.S. making three proposals. Ukraine rejected the first two because they lacked security guarantees, even as Washington pushed hard for an agreement.

As of Feb. 25, both sides were finalizing the details.

U.S. President Donald Trump has confirmed that he will meet Ukrainian President Volodymyr Zelensky “very soon” to sign the deal. However, since no official details have been released, the public has relied on leaked drafts and reports to understand what’s at stake.

Trump first mentioned the deal on Feb. 3. On Feb. 12, U.S. Treasury Secretary Scott Bessent presented a proposal to Zelensky, but Ukraine declined it due to the absence of security guarantees. Negotiations have since continued, with both sides struggling to reach a final agreement.

A leaked second proposal, dated Feb. 21, suggested creating a U.S.-owned “Reconstruction Investment Fund.” This fund would require Ukraine to give up 50% of future profits from its natural resources, including oil and gas, as well as key infrastructure like ports.

According to Ukrainian media outlet New Voice, sources close to the deal claimed the second proposal was “much stricter” than the first. The U.S. would have full ownership of the fund, while Ukraine would have to contribute $500 billion as repayment for American aid. Still, there were no security guarantees included in the deal.

Zelensky Rejects High Costs and Lack of Security Guarantees

President Zelensky strongly opposed the fund’s terms, arguing that U.S. aid had not exceeded $100 billion. Speaking at a conference in Kyiv on Feb. 23, he said, “I won’t sign something that will be paid by 10 generations of Ukrainians.” He also criticized the demand that Ukraine should contribute twice the amount given by the U.S. once the deal is signed.

“For every U.S. dollar, Ukraine must return two. In simple terms, this is 100% of the loan,” Zelensky explained.

Reports from Ukrainian outlet Ekonomichna Pravda on Feb. 22 suggested that the agreement could allow the U.S. to control more than half of Ukraine’s revenue from recovered occupied territories. However, since the leaked draft, the terms have changed. The U.S. has reportedly dropped the $500 billion demand but still plans to establish a fund, according to Bloomberg.

Former British Prime Minister Boris Johnson supported the revised deal, calling it “better than it was” during the YES conference in Kyiv on Feb. 24. He assured that “there will not be a penny incurred to that fund unless there is a free, sovereign Ukraine.” He added, “Ukrainians have negotiated it very, very well.”

Johnson, a Trump supporter, urged Ukraine to sign quickly but admitted the deal “doesn’t go far enough on security.” Still, he described it as a “prospect of progress for Ukraine.”

U.S. Pushes Economic Benefits While Ukraine Demands Security

Bessent defended the agreement, saying it would boost Ukraine’s economy and encourage foreign investment. In an op-ed for the Financial Times on Feb. 22, he explained that the fund would support “the long-term reconstruction and development of Ukraine where the U.S. will have economic and governance rights in those future investments.”

During an interview with Fox News on Feb. 23, Bessent described the first part of the deal as a U.S.-Ukraine partnership on “strategic minerals, energy, and state-owned enterprises.” However, he clarified that Washington is offering an “economic security guarantee” instead of the military assurances Kyiv wants.

A leaked draft from Feb. 21 showed that the U.S. aimed to invest “in a free, sovereign, and secure Ukraine” and ensure “a lasting peace.” While it did not promise military protection, it stated that the U.S. would help Ukraine “identify any necessary steps to protect mutual investments.”

How the Negotiations Began

The talks originally started as Ukraine’s attempt to secure Trump’s support. In September 2024, Kyiv introduced its critical minerals sector to U.S. Senator Lindsey Graham. However, Ukraine postponed the deal until after the U.S. election, hoping to appeal to Trump’s business instincts.

Trump focused on Ukraine’s “rare earths” in early February, though Ukraine only has small deposits. He suggested minerals could be exchanged for U.S. aid, saying Kyiv was ready to negotiate. Ukraine claims to have $12 trillion worth of minerals, including 22 types considered “critical” by the EU, such as titanium and lithium. However, these estimates are outdated and based on Soviet-era reports.

Aware that minerals alone might not be enough, the U.S. broadened its demands to include all natural resources. When Bessent presented the first proposal on Feb. 12, it included oil, gas, and other assets. Zelensky rejected it, insisting on security guarantees.

After details of the deal leaked, criticism spread across Ukraine. Many labeled it “colonial,” pointing out that it gave the U.S. a 50% stake in Ukraine’s resources and state-owned enterprises, including its energy sector. One clause even granted the U.S. priority rights for purchasing exported minerals.

Ukraine responded with its own proposal on Feb. 14 at the Munich Security Conference. The next day, Zelensky announced he would not sign an agreement that failed to protect Ukraine’s interests.

As negotiations continued, tensions between the U.S. and Ukraine escalated. Trump reportedly called Zelensky “a dictator,” and the White House allegedly considered shutting down Starlink satellite services—critical for Ukraine’s military—unless Kyiv signed the deal. However, Starlink’s owner, Elon Musk, later denied this claim.

On Feb. 20, the U.S. sent a new version of the deal, leading to overnight negotiations between officials from both countries. With the final agreement now in progress, both sides are working to reach a conclusion that balances economic interests and Ukraine’s need for security.

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