US and Ukraine Move Closer to Finalizing Strategic Minerals Agreement

US Treasury Secretary Scott Bessent announced that negotiations with Ukraine regarding a deal to tap into its mineral reserves are progressing, with a potential signing by the end of the day. This agreement seeks to establish a joint investment fund for mineral exploration and development, although some last-minute disputes remain.

The US and Ukraine are nearing the conclusion of negotiations for a pivotal agreement that would grant American companies access to Ukraine's extensive mineral resources. US Treasury Secretary Scott Bessent stated that they are prepared to finalize the deal, asserting that the ball is now in Ukraine’s court due to last-minute adjustments requested by the Ukrainian side.

Deputy Prime Minister Yulia Svyrydenko is heading to Washington following what has been described as a significant breakthrough in discussions. An earlier draft of the agreement disclosed plans for a joint Ukrainian-US investment fund aimed at exploring and extracting critical minerals, with clear terms on revenue-sharing.

Despite efforts throughout the night to solidify the agreement, a US official expressed frustration over Ukraine’s attempts to renegotiate aspects previously settled over the weekend. Key issues under contention include governance structure, transparency mechanisms, and ensuring that financial flows remain traceable.

Bessent reiterated that the US team had not altered its stance, emphasizing, “Nothing's been removed... it remains the agreement we discussed last weekend.” Technical arrangements were reportedly finalized the previous week, with Ukraine's Prime Minister Denys Shmyhal expressing optimism that the deal would be sealed within the next day.

This agreement arrives at a critical time, as the US seeks to bolster its mineral supply chains amid ongoing geopolitical tensions, particularly with China, where the majority of essential minerals are sourced. The potential deal not only highlights Ukraine's significant reserves—such as lithium, graphite, and titanium—but also signals broader US interests in Ukraine beyond mineral extraction.

While the specifics of promised US security support remain vague, the deal is described as “a tangible demonstration of the United States of America's support for Ukraine's security.” This ongoing cooperation follows a recent meeting between President Donald Trump and President Volodymyr Zelensky, where discussions indicated a more diplomatic tone between the two nations.

The anticipated arrangement had initially been scheduled for signing in February but was delayed due to escalating tensions between the US and Ukraine. Current reports indicate a renewed commitment, as both nations emphasize the importance of accessing Ukraine's untapped resource wealth, which is crucial for numerous sectors including green technology and defense.

As negotiations progress, the scope of this partnership could significantly alter the landscape of both nations’ resource management and economic collaboration, with the potential to benefit both in times of global supply chain challenges.