• Ukraine has agreed to a contentious deal with the U.S., reducing the initial demand from $500 billion in natural resources to a more manageable sum, focusing on setting aside 50 percent of future revenue from state-owned mineral resources into a fund for industrial investment.
• The deal, initially rejected by Ukrainian President Volodymyr Zelensky due to the high demands and lack of security guarantees, underwent significant changes through negotiations, leading to a more acceptable version.
• The agreement is seen as a strategic move to enhance Ukraine's economic ties with the U.S., which could indirectly provide a form of security support, despite the absence of explicit guarantees.
• Key details, including the U.S. stake in the fund and conditions of joint ownership, remain to be negotiated. The deal still requires approval from the Ukrainian parliament.
• The deal is part of a broader strategy to improve relations with the Trump administration. Zelensky is expected to visit Washington to formalize the agreement, amid ongoing tensions with Russia and concerns about U.S. support.

Ukraine has agreed to a contentious minerals deal proposed by the United States, according to reports.

The deal, which could be signed as early as Friday, Feb. 28, marks a pivotal moment in the relationship between the two countries, particularly given the tense dynamics surrounding aid and security guarantees. The agreement comes after a series of negotiations and a dramatic initial rejection by Ukrainian President Volodymyr Zelensky.

The U.S. initially demanded the equivalent of $500 billion worth of natural resources as compensation for aid provided to Ukraine throughout its conflict with Russia. However, the final draft of the agreement, seen by the Financial Times and dated Monday, Feb. 24,  significantly reduces the financial demands and omits explicit security guarantees, which were a key sticking point for Kyiv.

The final terms of the deal require Ukraine to create a fund and set aside 50 percent of the revenue for the "future monetization" of its state-owned mineral resources, including oil, gas and related logistics. This fund will be used to invest in Ukrainian industries.

Importantly, the agreement does not cover resources already generating revenue for the Ukrainian government, such as those managed by Naftogaz and Ukrnafta, the country's largest gas and oil producers. Despite the lack of explicit security guarantees, the deal is seen as a step towards broader economic ties with the U.S., which could provide a de facto security shield, according to Bloomberg, citing U.S. officials. The agreement also leaves open the question of the size of the U.S. stake in the fund and the terms of "joint ownership" deals, which will be determined in future negotiations.

The initial proposal by the U.S., presented by Treasury Secretary Scott Bessent, was met with staunch opposition from Kyiv. Zelensky rejected the proposal, citing a lack of security guarantees and disputing the figure of $500 billion in aid, arguing that the actual amount provided by Washington was closer to $100 billion. This rejection led to a sharp rebuke from U.S. President Donald Trump, who called Zelensky a "dictator" and appeared to blame Ukraine for starting the war with Russia. (Related: Trump slams Zelensky as "dictator without elections," questions U.S. funding for Ukraine war.)

The conflict between Ukraine and Russia, which intensified with Russia's full-scale invasion in 2022, has been a defining issue in European security. The U.S. has been a primary military aid donor to Ukraine, but Trump's recent overtures to Russia, including bilateral talks without European allies or Ukraine at the table, have raised concerns about the future of U.S. support for Kyiv.

Reactions and next steps

Ukrainian officials, including Deputy Prime Minister and Justice Minister Olha Stefanishyna, have emphasized that the minerals agreement is part of a broader strategy to improve relations with the Trump administration and secure long-term U.S. support.

"The minerals agreement is only part of the picture. We have heard multiple times from the U.S. administration that it’s part of a bigger picture," Stefanishyna told the Financial Times. Zelensky is expected to travel to Washington on Friday to formalize the deal and meet with Trump.

The Ukrainian government's justice, economy and foreign ministers have already approved the agreement and the nation's cabinet is expected to recommend signing it on Wednesday. However, the deal still requires approval from the Ukrainian parliament in the coming days.

The agreement on the minerals deal represents a significant compromise and a strategic move by Kyiv to strengthen its relationship with Washington. While the lack of explicit security guarantees remains a concern, the economic ties established through the deal could provide a form of de facto security and open the door for further negotiations and support. As Ukraine continues to navigate the complex geopolitical landscape, this deal is a crucial step in its effort to secure a more stable and supportive international position.

Watch the video below where Trump blasted Zelensky for being grossly incompetent and not knowing what he was doing.

This video is from Cynthia's Pursuit of Truth channel on Brighteon.com.

More related stories:

Trump exposes Zelensky's dictatorial grip on Ukraine, demands his immediate removal.

Musk, Trump criticize Zelensky over leadership and war spending as U.S. aid debate heats up.

Sources include:

RT.com

FT.com

Brighteon.com