Fossil fuels agreement with the USA: what stage are the negotiations at and what will Ukraine get?
Kyiv • UNN
Ukraine and the USA may sign an agreement on minerals and reconstruction on February 28 in Washington. The document provides for the creation of a fund to which Ukraine will contribute 50% of the revenues from the future monetization of state resources.
Barron's reported on February 25 that Ukraine and the United States could sign an agreement on minerals and reconstruction as early as this Friday, February 28. The signing could take place in Washington. UNN has gathered the main information surrounding the agreement.
Details
The FT reports that Kyiv has agreed terms with Washington on a minerals deal that Ukrainian officials hope will improve relations with the Trump administration and pave the way for long-term US security commitments.
Latest statements by US President Donald Trump on the agreement
On February 26, Trump stated that he "heard" about a possible visit by President Volodymyr Zelenskyy to Washington on February 28. He also said that he "is not against such a visit."
Commenting on the issue of Ukraine's mineral agreement, the US leader stated that the countries "have almost agreed." He also noted that "we will consider" Ukraine's future security "later."
As CNN writes, Trump also commented on what Ukraine will get from this agreement.
350 billion dollars (perhaps referring to the so-called "debt" for the provided assistance, but Trump did not specify - ed.) and a lot of equipment, military hardware, and the right to continue fighting
BBC wrote that Trump stated that he insisted on access to mineral deposits in Ukraine in exchange for military aid that the US provided to the country.
We want to get that money back
The US President stated that the agreement could be "worth a trillion dollars."
Initial US conditions
On February 18, The Telegraph reported that the proposed US agreement on access to Ukraine's natural resources envisioned Washington's control over mineral and oil and gas resources, ports, and other infrastructure.
The document implied that Donald Trump's demands went far beyond US control over Ukraine's critical minerals, encompassing everything from ports and infrastructure to oil and gas.
The final version of the agreement, dated February 24 and seen by the FT, provides for the creation of a fund to which Ukraine will contribute 50 percent of the revenues from the "future monetization" of state mineral resources, including oil and gas, as well as related logistics. The fund will invest in projects in Ukraine.
It excludes mineral resources that already replenish the Ukrainian state treasury, meaning it will not cover the current activities of Naftogaz or Ukrnafta, the largest gas and oil producers in Ukraine.
However, the agreement contains no references to US security guarantees, which Kyiv initially insisted on in exchange for agreeing to the deal. It also leaves important issues such as the size of the US share in the fund and the terms of "joint ownership" agreements to be settled in subsequent agreements.
Ukrainian Deputy Prime Minister Olha Stefanishyna, who led the negotiations, told the Financial Times that the agreement is "only part of the picture."
On February 24, UNN sources explained that this is a framework agreement on a fund for Ukraine's reconstruction and investment, which can be filled, in particular, by revenues from resources.
Statements by the President of Ukraine regarding the agreement
On February 23, Volodymyr Zelenskyy stated that the first agreement proposed by the United States, which provided for a "50-50" split, did not meet Ukraine's interests and did not contain the necessary security guarantees.
Also, on February 23, Zelenskyy stated that he could be forced to sign an economic agreement with the United States that would ensure continued aid to Ukraine in exchange for the US profiting from mineral extraction in the country.
In addition, the President of Ukraine emphasized, commenting on the mineral agreement, that he does not sign what 10 generations of Ukrainians will pay for.
Bloomberg reported on February 25 that the Cabinet of Ministers of Ukraine is expected to recommend signing an agreement with the US on joint development of critical minerals on Wednesday, February 26.