Kyiv-US mineral deal blames Russia for Ukraine war

A leaked copy of the mineral deal specifically states that Russia invaded Ukraine; Volodymyr Zelensky describes agreement as ‘truly equal.’

Ukraine's President Volodymyr Zelensky delivers a press conference in Kyiv. Picture: AFP

The minerals deal signed between Washington and Kyiv specifically blames Russia for the war in Ukraine, the Telegraph UK reports.

According to the Telegraph, the wording of the leaked document reads: “The United States of America has provided significant financial and material support to Ukraine since Russia’s full-scale invasion.”

Donald Trump’s administration had previously labelled the invasion over three years ago as the “Russia-Ukraine conflict”, and Mr Trump has infamously blamed Ukraine President Volodymyr Zelensky for the war.

Mr Zelensky has hailed the reworked agreeement as “truly equal”.

The deal, which both parties signed on Wednesday, would see the United States and Kyiv jointly develop Ukraine’s critical mineral resources.

US President Donald Trump initially described the arrangement as “money back” for the wartime aid Ukraine received under his predecessor Joe Biden, but Kyiv says the new agreement is not linked to any past “debt”.

During the negotiations, “the agreement changed significantly”, Mr Zelensky said in his daily address.

“Now it is a truly equal agreement that creates an opportunity for quite significant investment in Ukraine.”

“There is no debt in the deal, and a fund — a recovery fund — will be created that will invest in Ukraine and earn money here,” he added.

Kyiv and Washington planned to sign the agreement weeks ago, but a fiery clash between Trump and Zelensky in the White House temporarily derailed talks.

Ukraine had been pushing for long-term security guarantees as part of any deal.

The new agreement does not place any specific security commitments on the US, but Washington argues boosting its business interests in Ukraine will help deter Russia, which invaded its neighbour in 2022.

What’s in the deal?

Under the terms of the deal announced on Wednesday, Ukraine and the US will establish a joint Reconstruction Investment Fund.

The fund will be controlled by a company with “equal representation of three Ukrainian and three American board members,” the US Treasury Department said in a statement.

US Treasury Secretary Scott Bessent and Ukraine's Deputy Prime Minister Yulia Svyrydenko sign the minerals deal in Washington. Picture: Handout/AFP

The agreement covers 57 types of resources, including oil and gas. If the US decides to buy the resources, they will be given “first choice to either acquire them or designate the purchaser of our choice,” the Treasury Department said.

The new fund “will receive 50 per cent of royalties, license fees, and other similar payments from natural resource projects in Ukraine”.

Its profits will be invested exclusively in Ukraine for the first 10 years, after which profits “may be distributed between the partners,” Kyiv said.

What resources does Ukraine have?

Ukraine holds about five per cent of the world’s mineral resources and rare earths, according to various estimates.

But work has not yet started on tapping many of the resources and a number of sites are in territory now controlled by Russian forces.

Ukraine also has around 20 per cent of the world’s graphite, an essential material for electric batteries, according to France’s Bureau of

Volodymyr Zelensky and Donald Trump, talk as they attend the funeral of Pope Francis

Geological and Mining Research, and is a major producer of manganese and titanium.

It also says it possesses one of the largest lithium deposits in Europe, which is yet to be extracted.

Kyiv says “rare earth metals are known to exist in six deposits” and an investment of $300 million would be needed to develop a deposit at Novopoltavske, which it claimed was one of the world’s largest.

Does Ukraine have to repay the US?

Mr Trump demanded compensation for US aid given to Ukraine under his predecessor Joe Biden’s administration.

But under the terms of the deal signed this week, Ukraine will not be asked to pay back the billions of dollars it has received from the US since Russia’s invasion.

New military aid from Washington will be counted as its contribution to the fund, according to the text of the agreement.

Ukraine said it will maintain full control over its subsoil, infrastructure and natural resources throughout the process.

Kyiv noted that the agreement does not impact its bid for integration with the European Union.

What does US support mean for Ukraine?

Ukraine has said any deal would need to include long-term and robust security guarantees that would deter Russia from attacking again.

But the text does not place any specific security obligations on the US.

It simply says that the US “supports Ukraine’s efforts to obtain the security assurances necessary to build a lasting peace.” However, a US Treasury statement notably mentioned Russia’s “full-scale invasion” of Ukraine — diverging from the Trump administration’s usual formulation of a “conflict” for which Kyiv bears a large degree of responsibility.

“This is win-win for both sides,” US Treasury Secretary Scott Bessent told Fox Business on Thursday.

“I think this is a strong signal to the Russian leadership,” he said