'Terms normally imposed on aggressor states': The Telegraph reveals US-Ukraine mineral deal

The US-Ukraine partnership agreement on rare earth metal development covers not only minerals but also oil, gas, ports, and infrastructure, The Telegraph reported, citing a draft preliminary contract dated February 7, 2025.

According to the outlet, the deal envisions the creation of a joint US-Ukraine investment fund to ensure that "hostile parties to the conflict do not benefit from Ukraine's reconstruction."

The agreement covers "the economic value associated with resources of Ukraine," including "mineral resources, oil and gas resources, ports, other infrastructure (as agreed)." It states that the deal "shall be governed by New York law, without regard to conflict of laws principles."

Under the draft terms, the US would take 50% of recurring revenues from Ukraine's resource extraction and 50% of the financial value of "all new licenses issued to third parties" for future resource monetization. These revenues would be liened in favor of the US.

The deal also states that "for all future licenses, the US will have a right of first refusal for the purchase of exportable minerals." Washington would have sovereign immunity and near-total control over much of Ukraine's resource economy.

The fund would have the "exclusive right to establish the method, selection criteria, terms, and conditions" of all future licenses and projects.

The Telegraph highlighted that President Zelenskyy himself proposed granting the US a direct stake in Ukraine's rare earth elements and critical minerals in September 2024, hoping to pave the way for continued arms supplies.

"He probably did not expect to be confronted with terms normally imposed on aggressor states defeated in war. They are worse than the financial penalties imposed on Germany and Japan after their defeat in 1945," the outlet noted.

If signed under these terms, Trump's demands would take a larger share of Ukraine's GDP than the reparations imposed on Germany under the Treaty of Versailles.

Additionally, The Telegraph reported that Ukraine does not have a combined mineral and hydrocarbon reserve worth $26 trillion. The country also cannot meet Trump's demand for a $500 billion payment within any meaningful timeframe.

Read also: Ukraine finalizes rare earth elements partnership memorandum with US – source