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Zelenskiy cautious on new minerals deal but says past U.S. aid was not a loan
Published by Global Banking & Finance Review®
Posted on March 28, 2025
5 min readLast updated: January 24, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on March 28, 2025
5 min readLast updated: January 24, 2026
Zelenskiy is cautious about a US minerals deal, emphasizing EU integration and rejecting past US aid as loans. Kyiv's lawyers will review the proposal.
By Pavel Polityuk, Yuliia Dysa and Tom Balmforth
KYIV (Reuters) -President Volodymyr Zelenskiy said Ukraine would not accept any mineral rights deal that threatened its integration with the EU but said it was too early to pass judgment on a dramatically expanded minerals deal proposed by Washington.
The Ukrainian leader told reporters that Kyiv's lawyers needed to review the draft before he could say more about the U.S. offer, a summary of which suggested the U.S. was demanding all Ukraine's natural resources income for years.
He also said Kyiv would not recognise billions of dollars of past U.S. aid as loans, though he did not say whether such a demand featured in the latest draft version received by a top government official.
Zelenskiy did say, however, that the text was "entirely different" from an earlier framework agreement that he had been set to sign with Donald Trump before their talks descended into acrimony last month.
"The framework has been changed. Let us study this framework and then we can talk," he told a news conference in Kyiv.
The latest U.S. proposal would require Kyiv to send Washington all profit from a fund controlling Ukrainian resources until Ukraine had repaid all American wartime aid, plus interest, according to a summary reviewed by Reuters.
Zelenskiy, who has repeatedly emphasised the need for strong relations with the White House, appeared to be alluding to this last element when he said Kyiv did not view past assistance as something that now needed to be repaid.
Navigating an acceptable path forward on issues like this is a major challenge for Zelenskiy whose rift with Trump last month saw Washington cut off flows of previously agreed military assistance and stop intelligence sharing.
It is also a highly sensitive diplomatic juncture with Trump trying to rapidly end the fighting with Russia, while reorienting Washington's policy towards endorsing Moscow's narrative about its three-year-old war in Ukraine.
Deputy Prime Minister Yulia Svyrydenko told lawmakers that Kyiv would issue its position on the new draft only once there was consensus. Until then, public discussion would be harmful, she said.
Another Ukrainian source described the full document presented by the Americans as "huge".
REVISED DRAFT
Zelenskiy has repeatedly said he accepts the idea of signing a mutually-beneficial minerals deal with the United States, although he would not sign an agreement that would impoverish his country. On Thursday he said Washington was constantly changing the terms but that he did not want the U.S. to think he was opposed in principle.
Three people familiar with the ongoing negotiations said Washington had revised its proposals. The latest draft gives Ukraine no future security guarantees and requires it to contribute to a joint investment fund all income from the use of natural resources managed by state and private enterprises.
According to the summary, it stipulates that Washington is given first rights to purchase extracted resources and recoup all the money it has given Ukraine since 2022, plus interest at a 4% annual rate, before Ukraine begins to gain access to the fund's profits.
Ukraine's 2024 budget revenues included, among other things, $1.2 billion of rent payments for the use of subsurface resources, $1.8 billion in dividends and other payments from the state share in state-owned companies, and $19.4 billion from profits at state-owned companies, finance ministry data showed.
The joint investment fund would be managed by the U.S. International Development Finance Corporation and have a board of five people, three appointed by the U.S. and two by Ukraine. Funds would be converted into foreign currency and transferred abroad.
An earlier version of the deal, which Ukraine agreed to in principle before Zelenskiy visited the White House last month, had terms that appeared more favourable to Ukraine. It proposed a joint investment fund with Ukraine contributing 50% of proceeds from future profits of state-owned natural resources.
Kyiv said that previous version had been only a framework deal that would lay the ground for a more detailed deal that would have to be agreed later.
Zelenskiy's visit on February 28 ended with Trump berating him in the Oval Office, later followed by several days during which Washington suspended all intelligence support and military aid to Ukraine.
Since then, Zelenskiy has trodden carefully, repeatedly thanking the United States for support.
Earlier this month Ukraine agreed to a U.S. proposal for a 30-day ceasefire, even though this was rejected by Russia.
Last week, Ukraine and Russia both agreed to pause attacks on energy infrastructure and at sea, but Moscow demanded international sanctions be eased before it accepted the maritime truce.
Treasury Secretary Scott Bessent has been spearheading negotiations on the mineral deal. In an interview with Fox News earlier this week, he said the U.S. had "passed along a completed document for the economic partnership" and Washington hoped to "perhaps even get signatures next week."
(Reporting by Pavel Polityuk in Kyiv and Gram Slattery, Erin Bano and Andrea Shalal in Washington; writing by Tom Balmforth; Editing by Jon Boyle and Andrew Heavens)
The main topic is Ukraine's cautious approach to a proposed US minerals deal and its implications for EU integration and past US aid.
Zelenskiy is cautious because the deal could affect Ukraine's EU integration and involves significant financial commitments.
The US proposal requires Ukraine to send all resource income to the US until wartime aid is repaid, with no future security guarantees.
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