The U.S. and Ukraine should form a joint investment fund” – A key point in the proposed deal to control Ukraine’s resources
U.S. President Donald Trump has demanded repayment for the military aid and financial assistance the United States has provided to Ukraine since the start of the war with Russia. Trump insists that Ukraine should compensate the U.S. with $500 billion worth of rare earth minerals to cover the cost of American support.
The US president also claimed that Ukraine had already agreed to grant the U.S. access to its natural resources, amounting to $500 billion. Experts argue that the American demand represents a greater share of Ukraine’s GDP than the reparations imposed on Germany by the Treaty of Versailles. However, the conditions under which Ukraine would accept the U.S. request remain unclear.
A draft agreement that recently surfaced reportedly landed at President Volodymyr Zelensky’s office a week ago. Analysts believe that its terms amount to an economic takeover of Ukraine by the U.S. However, implementing such a demand may prove impractical and difficult to achieve. The request has caused significant concern and panic in Kyiv.
According to The UK Telegraph, which claims to have accessed the draft contract dated February 7, 2025, the agreement proposes that the U.S. and Ukraine establish a joint investment fund. The fund’s purpose would be to prevent hostile actors from benefiting from Ukraine’s reconstruction efforts.
The contract encompasses the economic value of Ukraine’s resources, including minerals, oil, gas, ports, and infrastructure, leaving room for additional assets to be included. It further states that “this agreement shall be governed by New York law, without regard to conflict of laws principles.”
Under the terms of the agreement, the U.S. would receive 50% of Ukraine’s recurring revenues from resource extraction and 50% of the financial value of all new licenses issued to third parties for resource monetization. A lien would be placed on these revenues in favor of the U.S. “That clause means ‘pay us first, and then feed your children,’ said one source familiar with the negotiations.
Additionally, the agreement grants the U.S. the right of first refusal for purchasing Ukraine’s exportable minerals. It also gives Washington near-total control over Ukraine’s resource economy, with sovereign immunity and exclusive rights to determine the terms of all future resource-related licenses and projects. Some sources speculate that private legal firms, rather than U.S. government agencies, drafted the agreement.
The origins of the deal trace back to Zelensky’s visit to Trump Tower in September, during which he proposed allowing the U.S. a direct stake in Ukraine’s rare earth elements and critical minerals. Zelensky believed this would encourage American companies to establish operations in Ukraine, creating a political safeguard against further Russian aggression.
Some of Ukraine’s most valuable mineral deposits lie near the frontlines or in Russian-occupied territories. Zelensky has emphasized the risks of allowing strategic reserves of titanium, tungsten, uranium, graphite, and rare earth minerals to fall into Russian hands. “If we are talking about a deal, then let’s do a deal; we are open to it,” he stated.
However, the stringent conditions imposed by the draft agreement resemble punitive measures typically reserved for defeated nations. Experts argue that the terms are even harsher than the reparations imposed on Germany and Japan after World War II. Notably, both countries eventually became net recipients of funds from their former adversaries.
If accepted, Trump’s demands would require Ukraine to relinquish a greater portion of its GDP than Germany did under the Treaty of Versailles, which was later adjusted by the London Conference in 1921 and the Dawes Plan in 1924. Ironically, Trump appears willing to let Russia off the hook entirely.
In an interview with Fox News, Trump asserted that Ukraine had “essentially agreed” to the $500 billion repayment plan, stating: “They have tremendously valuable land in terms of rare earths, oil, and gas, among other things.” He warned that rejecting the deal could leave Ukraine vulnerable to Russian control. “They may make a deal. They may not make a deal. They may be Russian someday, or they may not be Russian someday. But I want this money back,” he added.
Trump also claimed that the U.S. has already spent $300 billion on the war effort. However, official records indicate that the total aid approved by Congress amounts to $175 billion, with $70 billion allocated to domestic weapons production. Some funds were given as humanitarian grants, while others were structured as lend-lease assistance, requiring repayment.
Republican Senator Lindsey Graham suggested during the Munich Security Conference that Trump’s proposal might be a strategic move to boost declining support for Ukraine within the U.S. “He can tell the American people that Ukraine is not a burden but a benefit,” Graham stated.
Graham also urged European allies to support the deal, arguing that it would ensure Washington remains committed to Ukraine’s defense. “If we sign this minerals agreement, Putin is in trouble because Trump will defend the deal,” he added.
Ukrainian officials, however, have been cautious in their response, treading carefully in diplomatic discussions. At the Munich forum, they acknowledged the potential benefits of a resource partnership with the U.S. while also stressing that the current draft agreement violates Ukrainian law and requires modifications before it can be approved. Indeed, the outcome of this negotiation remains uncertain.
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