United States, Ukraine reach agreement on minerals and reconstruction deal

New Delhi, February 26: The United States and Ukraine have agreed on the terms of a major minerals and reconstruction deal that may finally bury the growing differences between Trump and Zelensky and may further enhance their bilateral relations as reported by the international media.

The deal is expected to play a crucial role in Ukraine’s post-war economic recovery and resource utilisation. While Washington has yet to formally confirm the agreement, Ukrainian President Volodymyr Zelensky is anticipated to visit the US in the coming days to finalise discussions.

According to BBC, a senior Ukrainian official in Kyiv described the agreement as a "positive outcome," noting that amendments had been made to satisfy both sides. However, further details remain undisclosed. The deal is part of broader negotiations between Kyiv and Washington over Ukraine’s post-war economic recovery and resource utilization.

US President Donald Trump has hinted at the deal’s significance, stating in the Oval Office, "I hear that he’s coming on Friday. Certainly, it’s okay with me if he’d like to, and he would like to sign it together with me. And I understand that’s a big deal, very big deal," CNN reported.

Reports suggest Washington has backed away from initial demands for a $500 billion share in revenue from Ukraine’s natural resources but has yet to provide firm security guarantees, one of Kyiv’s key demands. Speaking to reporters on Tuesday, Trump asserted that Ukraine would gain "the right to fight on" under the deal. "They’re very brave," he said before emphasizing the importance of US military and financial assistance. "Without the United States and its money and its military equipment, this war would have been over in a very short period of time."

When pressed on the continuation of US military aid to Ukraine, Trump suggested it could last "maybe until we have a deal with Russia... We need to have a deal, otherwise it’s going to continue." He further emphasized the necessity of "some form of peacekeeping" but added that it must be "acceptable to everyone."

Political Tensions and Strategic Shifts

The negotiations come amid heightened tensions between the two leaders. Just last week, Trump referred to Zelensky as a "dictator" and suggested Ukraine rather than Russia was responsible for starting the war. Zelensky, in turn, accused Trump of being influenced by Russian disinformation and rejected US demands for a massive share of Ukraine’s mineral wealth, declaring, "I can't sell our state."

Trump has long pushed for access to Ukraine’s rich deposits of critical minerals, citing past US military and financial assistance to the country. On Tuesday, he claimed that the US had provided between $300 billion and $350 billion in aid to Ukraine, adding, "We want to get that money back... but the American taxpayer now is going to get their money back plus."

Ukraine’s Deputy Prime Minister Olha Stefanishyna told the Financial Times that the minerals deal was "only part of the picture." She emphasized that the US administration views it within a broader geopolitical framework. BBC, citing Ukraine's news outlet Ukrainska Pravda, reported that Ukrainian Foreign Minister Andrii Sybiha and US Secretary of State Marco Rubio were expected to sign the deal. Additionally, an economic unit within Ukraine’s media reported that both countries had agreed to establish a reconstruction investment fund.

Ukraine is known for its vast mineral wealth, including massive reserves of lithium, titanium, graphite, and uranium resources essential for global industries ranging from renewable energy to military technology.

Prior to Russia – Ukraine conflict, Ukraine produced 7% of the world’s titanium and held a third of Europe’s lithium deposits. However, a portion of these resources now lies under Russian occupation, with Ukrainian Economy Minister Yulia Svyrydenko estimating that $350 billion worth of minerals remain in Russian-controlled territories.

The deal comes at a time of increasing concern in Kyiv and among European allies overwarming US-Russia relations. CNN reported that recent bilateral talks in Saudi Arabia between Washington and Moscow have fuelled fears that Ukraine and its European partners could be sidelined in negotiations shaping the war’s resolution and the future security of the continent.

On Tuesday, Russian President Vladimir Putin made a surprising offer, stating he was open to granting the US access to rare minerals from Russian-occupied Ukrainian territories. The overture has only deepened concerns in Kyiv and Europe that the US may be recalibrating its alliances.

The US-Ukraine minerals deal highlights a fundamental shift in American foreign policy. Aid, whether for humanitarian or strategic purposes, is no longer granted without conditions.

Ukraine appears to be the first test case for this redefined policy framework. If the minerals deal sets a precedent, similar expectations could shape future US engagement with allies and strategic partners worldwide over the next four years.