Ukraine Ready to Sign Minerals Deal with US: Zelenskyy Seeks Security Guarantees
Team Finance Saathi
03/Mar/2025

What's covered under the Article:
- Ukraine’s readiness to sign a minerals deal with the US, per President Volodymyr Zelenskyy.
- The deal includes revenue sharing and an investment fund for Ukraine’s natural resources.
- Zelenskyy met world leaders including King Charles III and Italy’s PM Giorgia Meloni for strategic talks.
Ukrainian President Volodymyr Zelenskyy has announced that Ukraine is ready to sign a minerals agreement with the United States, calling it the "first step toward security guarantees." This declaration comes amid diplomatic tensions following Zelenskyy’s tense exchange with former US President Donald Trump at the Oval Office.
In a post on X, Zelenskyy emphasized that while the minerals deal is an important step, Ukraine needs more than just economic agreements. “A ceasefire without security guarantees is dangerous for Ukraine. We’ve been fighting for three years, and Ukrainian people need to know that America is on our side,” he wrote.
Zelenskyy's Diplomatic Push
Amid ongoing geopolitical challenges, Zelenskyy has sought stronger international support for Ukraine’s defense and post-war economic recovery. His diplomatic tour has seen engagements with several global leaders.
Meeting with King Charles III
Zelenskyy’s diplomatic efforts took him to Britain, where he met King Charles III at Sandringham House. The meeting underscores Britain’s support for Ukraine and highlights the growing attention on Ukraine’s economic and security partnerships.
Expressing his gratitude, Zelenskyy posted on X, stating: "I am grateful to His Majesty King Charles III for the audience."
Talks with Italy’s PM Giorgia Meloni
Further strengthening diplomatic ties, Zelenskyy also met Italian Prime Minister Giorgia Meloni to develop a joint action plan for ending the war through a just and lasting peace. Italy has been a key supporter of Ukraine, providing economic aid and military assistance.
US-Ukraine Minerals Deal: A Strategic Agreement
The proposed US-Ukraine Minerals Agreement, announced on February 25, 2025, is aimed at boosting economic cooperation and securing investments to aid Ukraine’s post-war reconstruction.
This agreement is particularly significant as Ukraine possesses abundant reserves of critical rare-earth elements, oil, and gas, which are essential for various industries, including technology, defense, and renewable energy.
Key Provisions of the Agreement
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Revenue Sharing:
- Under the agreement, the United States would receive 50% of the revenue generated from the extraction of Ukraine’s natural resources.
- The remaining profits would be used to support Ukraine’s economic development and attract further foreign investment.
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Investment Fund:
- A joint investment fund will be established to manage and oversee mining projects.
- The fund aims to ensure that mining operations are structured, sustainable, and beneficial to both Ukraine and its investors.
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Rare-Earth Elements & Energy Resources:
- Ukraine holds significant deposits of rare-earth minerals, vital for the technology and defense industries.
- The agreement will facilitate joint ventures in oil, gas, and mineral extraction, strengthening Ukraine’s role in the global energy market.
Why This Agreement Matters
With Ukraine's economy severely impacted by the war, the minerals deal provides a crucial financial lifeline. Experts believe that strategic investments in Ukraine’s natural resources will not only revive its economy but also fortify its alliance with the West.
Additionally, the deal is seen as a strategic counter to Russian influence, reducing Ukraine’s dependence on Russian-controlled resources and ensuring economic security through Western investments.
Reactions to the Agreement
- Supporters see this as a crucial step in Ukraine’s economic recovery, allowing the country to rebuild its war-torn industries while also securing long-term security commitments.
- Critics, however, argue that the 50% revenue-sharing model heavily favors the United States, raising concerns that Ukraine may lose control over its resources in exchange for security assurances.
- Proponents of the deal stress that this agreement ensures Ukraine’s integration into Western economic frameworks, reducing reliance on Russian energy and trade partnerships.
What’s Next?
While Ukraine is ready to sign the agreement, negotiations over final terms and specific security commitments are expected to continue in the coming weeks.
With international leaders closely watching, this deal could become a pivotal moment in Ukraine’s efforts to secure long-term economic stability and Western security support. As the conflict with Russia persists, Ukraine’s ability to leverage its natural resources and strengthen its alliances remains key to shaping its future.
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