Ukraine agrees updated minerals deal with US - media

The Financial Times reports, citing sources.

Ukrainian officials say Kyiv is now ready to sign the agreement on jointly developing its mineral resources, after the US dropped demands for a right to $500bn in potential revenue from exploiting the resources.

According to the sources, the Ukrainian side agreed on much more favorable terms for itself.

The final version of the agreement, dated February 24 and seen by the FT, would establish a fund into which Ukraine would contribute 50 per cent of proceeds from the “future monetisation” of state-owned mineral resources, including oil and gas, and associated logistics. The fund would invest in projects in Ukraine.

It excludes mineral resources that already contribute to Ukrainian government coffers, meaning it would not cover the existing activities of Naftogaz or Ukrnafta, Ukraine’s largest gas and oil producers.

However, the agreement omits any reference to US security guarantees, which Kyiv had originally insisted on in return for agreeing to the deal. It also leaves crucial questions such as the size of the US stake in the fund and the terms of “joint ownership” deals to be hashed out in follow-up agreements, the media outlet points out. 

FT’s sources said the deal had been approved by the justice, economy and foreign ministers, and held out the prospect of Zelenskyy travelling to the White House in the coming weeks for a signing ceremony with Trump.