US pushes Ukraine to sign controversial minerals deal, Zelenskyy ponders legal review

The United States has delivered an updated version of its strategic minerals agreement to Ukraine, pressing Kyiv to make a swift decision on the deal, which the Ukrainian government is currently scrutinising.

The revised document is under review, and while discussions are ongoing, the final version may differ from the one currently on the table, Caliber.Az reports, citing French media.

President Volodymyr Zelenskyy stated on March 28, that the deal would not be signed as quickly as Washington hoped, with the US Treasury Secretary, Scott Bessent, having indicated the agreement could be finalised between March 31 and April 6. Zelenskyy added that the government needed to consult its legal advisers before proceeding.

When questioned about the content of the new agreement, Zelenskyy appeared cautious, mentioning that many aspects had not been previously discussed, while others had already been rejected by the parties. However, he firmly stated that the aid provided by the previous US administration should be regarded as a grant, not a debt, in line with agreements made under former President Joe Biden.

In contrast, US President Donald Trump views the aid as a debt that must be repaid. Trump has demanded that Ukraine reimburse the full cost of American support, including financial, military, and humanitarian aid provided after Russia’s large-scale invasion in 2022.

The initial version of the agreement, which Zelenskyy was expected to sign during a visit to Washington on February 28, had set the repayment amount at $500 billion. Kyiv disputes this figure, citing that the US has already spent $123 billion supporting Ukraine, according to an independent Ukrainian institute. A slight revision has followed, with Washington stating that the final sum will be determined later and included in an annex to the agreement.

The revised agreement has sparked concerns in Ukraine. Deputy Yaroslav Zheleznyak labelled the new draft "not in our favour," suggesting it could lead to Ukraine’s subordination to US economic interests. Pressure is mounting on Ukraine to surrender control over its natural resources, including rare earth minerals, oil, and gas, as well as infrastructure projects such as roads, railways, ports, and mines. According to the proposal, all these assets would be managed by the US, with the American side reaping the primary benefits, which would then be pooled into a special investment fund. Ukraine would be required to contribute 50% to the fund, but would have no control over its operations, with three of the five members of the fund’s board appointed by the US.

Furthermore, all profits would be immediately converted into foreign currency and transferred abroad. Ukraine would also be prohibited from selling strategic minerals to any "strategic competitors" of the United States. In a significant blow to Ukraine’s security concerns, the revised agreement offers no guarantees of military or security support, which Kyiv has long sought.

This new deal, if signed, would significantly enhance US economic influence in the heart of Europe, just as Ukraine is seeking to align itself with the European Union. Zelenskyy reaffirmed that Ukraine’s European path is enshrined in its Constitution and would not change, emphasising that agreeing to the deal could undermine Ukraine’s sovereignty and European integration.

The Ukrainian president faces a difficult decision. Rejecting the agreement could provoke backlash from the US, which has previously frozen military and intelligence aid. While Zelenskyy has indicated his willingness to maintain positive relations with the US, he also hinted that the draft may be too damaging for Ukraine’s long-term interests. As reported by Ukrainian journalist Sergiy Sydorenk, it seems unlikely that Zelenskyy will be able to secure the necessary 226 votes in the Ukrainian parliament to approve such a controversial agreement, describing the proposal as a "shame" for the country.

The final outcome of the negotiations remains uncertain, as the Ukrainian government carefully weighs its options amid growing international pressure.

By Aghakazim Guliyev