Ukraine, US to Sign Natural Resources Agreement, Strengthening Economic Ties

Ukraine is reportedly preparing to sign a natural resources agreement with the United States as early as Wednesday. This move is aimed at strengthening the economic partnership between the two countries, thereby solidifying Washington's support for Kyiv. According to a source familiar with the matter, the draft agreement has been finalized and could be signed as early as Wednesday. The agreement proposes the establishment of a joint fund to manage investment projects in Ukraine. The source also mentioned that Ukraine's Minister of Economy, Yulia Svyrydenko, is en route to Washington to sign the agreement.

The draft agreement outlines plans for the United States and Ukraine to create conditions that would "increase investment in Ukraine's minerals, energy, and related technologies." The Washington side also recognizes Kyiv's intention to ensure that the agreement does not conflict with Ukraine's plans to join the European Union, which has been a key negotiating point for Ukraine. The U.S. Treasury Department did not immediately respond to a request for comment.

Following a significant concession from the Trump administration, where past military aid would not be considered in the agreement, the United States and Ukraine are poised to sign a mineral framework agreement as early as this week. This development comes after a public disagreement between U.S. President Trump and Ukrainian President Zelensky in the Oval Office in February, which led to the cancellation of an earlier signing ceremony for a mineral agreement. Following that dispute, Trump insisted that the U.S.'s past military aid, amounting to tens of billions of dollars, should be considered as loans to be repaid through the agreement. Zelensky rejected this proposal.

Ukrainian Prime Minister Shmyhal announced late last week that "it has been agreed that the aid provided before the signing of the agreement will not be included in the agreement." A senior Ukrainian official stated that this could pave the way for the framework agreement to be signed this week. The breakthrough occurred after Trump met with Zelensky in the Vatican over the weekend, describing the meeting as "a beautiful encounter" and praising the Ukrainian leader for doing "a great job."

Trump added, "I think he is more at ease. I think he understands the situation, and I think he wants to reach an agreement." In recent days, Trump has expressed deep frustration with both Ukraine and Russia, believing that neither side is willing to make concessions to end the largest conflict in Europe in 80 years. "I am very disappointed that Russia is launching missiles... I hope he stops firing and sits down to sign an agreement," Trump told reporters on Sunday, in a rare criticism of Russian President Putin. Earlier, some critics had accused Trump of putting more pressure on Kyiv than on Moscow.

Trump has long viewed the so-called mineral agreement, aimed at jointly developing Ukraine's rare earth elements and other natural resources, as a means to recoup the tens of billions of dollars in military aid provided by the Biden administration to Kyiv. This aid was used to pressure Zelensky into broader peace talks. The U.S. pressure campaign has been evident since early February, days before the Oval Office dispute, when Treasury Secretary Bessenet visited Kyiv and demanded that Zelensky sign the initial framework agreement in his presence, ultimately leading to a heated exchange.

On Sunday, Shmyhal stated that he had held "important talks" with Bessenet to finalize the details. He said, "The legal team is drafting the documents. We have made good progress." He added that Ukraine has clearly defined its "red lines." Earlier, Ukrainian officials had indicated that using the proceeds from the mineral agreement to repay past military aid could undermine their national sovereignty, jeopardize Ukraine's efforts to join the European Union, and would not be approved by their parliament. Many Ukrainian lawmakers, including some from Zelensky's party, have expressed concerns about the mineral agreement and stated that they would not vote for a bad deal.

Senior Ukrainian officials revealed that the framework agreement being finalized applies to all mineral resources across Ukraine, including oil and natural gas, as well as major energy assets. Shmyhal stated, "The agreement must comply with European commitments and not contradict Ukraine's constitution and laws," suggesting that the new agreement could address Kyiv's concerns. Earlier this month, Kyiv and Washington signed a memorandum of understanding, committing to progress on the investment fund portion of the agreement regarding Ukraine's natural resources and energy assets. The negotiations have been so sensitive that Zelensky ordered an investigation into the leak of the previous U.S. proposal earlier this month, including polygraph tests on government officials. National Security Advisor Walts said in an interview on Sunday that he believed the agreement "will be reached." He added, "The negotiators have been working hard over the weekend." He also stated that Trump "is determined to make this happen."