U.S. President Donald Trump meets with Ukrainian President Volodymyr Zelenskiy at the White House in Washington, D.C., U.S., February 28, 2025. REUTERS/Brian Snyder/File Photo
U.S. and Ukraine Make Substantial Progress on Minerals Agreement
April 16, 2025
Ukraine and the United States have made “substantial progress” in negotiations on a bilateral minerals agreement and are expected to sign a memorandum in the near future, according to Ukrainian First Deputy Prime Minister Yulia Svyrydenko.
The proposed agreement forms part of U.S. President Donald Trump’s broader strategy to bring an end to the ongoing war between Ukraine and Russia. It also aims to provide a mechanism for the United States to recoup a portion of the military aid it has supplied to Ukraine since the start of the invasion in 2022.
Memorandum Expected Soon
“Our technical teams have worked very thoroughly together on the agreement, and there is significant progress. Our legal staff has adjusted several items within the draft agreement,” Svyrydenko stated in a message posted on social media platform X.
She confirmed that the parties plan to sign a memorandum of understanding in the near term to formally acknowledge the progress made so far. Negotiations on the final terms of the agreement are ongoing.
Revised U.S. Estimate on Military Aid
Bloomberg News reported on Wednesday that the U.S. has revised its cost estimate for military and other assistance provided to Ukraine, reducing the total from approximately $300 billion to $100 billion. This reassessment may influence future economic arrangements between the two countries.
Terms of the Proposed Deal
The Trump administration last month proposed a new and broader minerals agreement. While the deal does not offer Ukraine any future security guarantees, it would require Ukraine to allocate all income derived from the exploitation of natural resources—both state-owned and privately operated—to a joint investment fund managed in cooperation with the United States.
The draft agreement would need to be ratified by Ukraine’s parliament before coming into effect.
Economic Growth Potential
According to Svyrydenko, the agreement is expected to facilitate investment and drive economic development in both Ukraine and the United States.
“It will create opportunities for investment and development in Ukraine and establish conditions for tangible economic growth for both Ukraine and the United States,” she said, without disclosing further specifics.
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