The US and Ukraine have signed a memorandum of intent with the goal of finalising a “formal agreement on economic partnership and reconstruction investment fund,” concerning mineral exploitation, according to a document seen by Euronews.
The one-page document, signed by Ukraine’s first deputy prime minister Yulia Svyrydenko and US Secretary of Treasury Scott Bessent on Thursday evening, says that a key round of negotiations will happen in Washington between 21 and 26 April.
By that time, it is expected that both sides will have reached a general agreement to finally sign off on the deal.Â
“Without prejudice to any remaining political or legal procedures required to complete the arrangement, Ukraine Prime Minister Shmyhal will visit Washington DC the week of April 21 2025 to meet the US Treasury Secretary Bessent and lend high-level support to the conclusion of technical discussions on the terms of an agreement establishing a reconstruction investment fund,” the document reads.Â
“Negotiating teams are expected to report on the progress by April 26, 2025, with the aim of completing discussions by that date and signing as soon as possible.”
The document also outlines possible conflicts the agreement may create with the European Union and that the US will not interfere in such a case.Â
“The United States respects Ukraine’s intention to avoid conflicts in the drafting of the agreement with Ukraine’s obligations under European Union accession or agreements with international financial institutions and other official creditors,” the document says.
Tensions between the US and Ukraine
Relations between Ukraine and the US have soured since US President Donald Trump began negotiations with Russian officials to end the war, side-lining Ukrainian President Volodymyr Zelenskyy.
A meeting between Zelenskyy and Trump in the Oval Office in February descended into a shouting match, with Trump accusing the Ukrainian president of not being grateful enough for US support.
Meanwhile, Secretary of State Marco Rubio was in Paris on Thursday to discuss a wide range of issues with European allies, including the war in Ukraine.
On Friday, he told the press that if no progress is made on peace within the next few days, Washington might abandon peace talks.
What is in the deal?
At the end of March, Bloomberg and the Financial Times revealed details about the latest version of the mineral agreement put forward by the White House, which would see Washington gain unprecedented control over Ukraine’s natural resources through a joint investment fund.
Under the draft, the fund’s board would comprise five members: three appointed by the US and two appointed by Ukraine.
In practice, this would give Washington an effective veto power on key decisions regarding new projects of infrastructure and natural resources.
Roads, railways, ports, mines, oil, gas and the extraction of critical minerals would all fall under the scope of the new structure.
Ukraine would be obliged to present all new projects to the fund for review “as early as practicable”, Bloomberg reported. If the project were turned down, Ukraine would be prevented from offering it to other parties with “materially better” conditions.
Additionally, the US would have the right to reap all the profits from the fund and a 4% annual return until the military and financial aid that has been provided to Ukraine is fully recouped.
The Kiel Institute for the World Economy estimates American support to be worth €114 billion since the start of Russia’s full-scale invasion.
The “payback” model has been central to Donald Trump’s motivation to sign the deal.
