In a move that could reshape economic and geopolitical dynamics, the United States and Ukraine have reportedly reached an agreement on a draft minerals deal.
The agreement centres around establishing a Reconstruction Investment Fund designed to reinvest revenues generated from Ukraine’s rich reserves of minerals, hydrocarbons, and other extractable resources.
The agreement is crucial to Ukraine’s efforts to secure backing from the US, but it stops short of providing explicit security guarantees or a commitment to the continued supply of weaponry.
Sources familiar with the draft indicate that these critical elements remain under discussion.
Under the proposed framework, Ukraine will allocate 50 per cent of its revenue, minus operating expenses, up to a ceiling of US$500 billion, into the Reconstruction Investment Fund.
In return, the United States pledges its commitment to the long-term development of a stable and economically prosperous Ukraine.
Ukraine holds significant deposits of critical minerals, including graphite, with reserves accounting for 20 per cent of global resources.
Graphite is a crucial component in the manufacturing of electric vehicle batteries and nuclear reactors.
By unlocking access to these resources, the US stands to benefit significantly.
The agreement follows earlier disagreements, with Ukrainian President Volodymyr Zelenskyy previously rejecting a draft that granted the US rights to US$500 billion of Ukraine’s natural resources without adequate security assurances.
US President Donald Trump has framed the deal as a means of compensating American taxpayers for the aid provided to Ukraine.
When questioned about the benefits for Ukraine, Trump pointed to the US$350 billion in prior US support and military equipment.
Trump has also mentioned the potential need for peacekeeping troops in Ukraine if a peace agreement is reached.
However, Russia, which initiated military action in Ukraine three years ago, is staunchly opposed to the deployment of any NATO forces within Ukraine.
President Trump’s approach to resolving the conflict in Ukraine and his perceived alignment with Russia have sparked concerns about potential concessions to Russian President Vladimir Putin.
Critics suggest such concessions could compromise security within Ukraine and across Europe.
While officials from both sides have advocated for the agreement’s signing, the future of weapons shipments remains a topic of ongoing negotiation.
The deal, if finalised, has the potential to unlock Ukraine’s vast mineral wealth for the US, while also providing a framework for the reconstruction and economic development of Ukraine.
