Categories: POLITICSUKRAINE

The new draft of Ukraine minerals deal with the U.S. is worse than the Budapest memorandum

MP Zheleznyak stated that he received a draft of the new minerals deal with the U.S.: what is now being demanded from Ukraine.

Ukrainian MP Yaroslav Zheleznyak claims that the American side has already sent Ukraine a new draft agreement on mineral resources, which is to be ratified by the Verkhovna Rada. Dated March 23, the document allegedly grants the U.S. access to all minerals across Ukraine, including current and future developments.

Zheleznyak reported this on his Telegram channel Zalizny Nardep on Thursday, March 27.

According to him, he received the document on March 26 from Ukrainian government officials, and it was supposedly sent by the U.S. side as a new draft agreement on minerals. Zheleznyak also emphasized that this is not the final version and expressed hope that Ukraine would demand and secure significant changes to it.

The MP claims that the document consists of 18 sections and 58 pages.

According to him, this is “no longer a framework memorandum of intent, which existed before the scandalous meeting in the Oval Office,” but rather a full-fledged “large and very clear agreement.” “And it’s not in our favor,” said the MP.

Zheleznyak also highlighted the key points in the document (presented below in the MP’s interpretation):

The management of the [investment fund, which Ukraine and the U.S. are supposed to create, and which will accumulate income from Ukrainian mineral resources — ed.] will consist of five people, three of whom will be from the U.S., with full veto rights.
It concerns all minerals [not just rare earth metals — ed.], including oil, gas, and both new and existing resources.
This applies to the entire territory of Ukraine.
It covers mining by both state and private companies.
The funds are immediately converted into foreign currency.
The fund’s money is transferred abroad. If something doesn’t reach due to reasons on our side, we have to pay the difference.
The U.S. contribution includes the assistance already provided to Ukraine since 2022. “And they can profit from their decisions. They receive ‘royalties’ from the Fund first (then Ukraine) +4%,” added the MP.
The agreement is indefinite.
Changes or termination are only possible with U.S. approval.
The “right of first night” on all new infrastructure projects and the right to veto the sale of resources to other countries.
There is no mention of security guarantees for Ukraine.

Zheleznyak also emphasized that the document contains a lot of legal text.

“And it can and should be changed. Otherwise, I can’t imagine how it could be ratified by Parliament,” Zheleznyak concluded.

The agreement on critical mineral resources between Ukraine and the U.S. – what is known

Ukraine and the U.S. were set to sign a framework agreement on rare earth metals on February 28. The document outlined the commitment to begin negotiations with the U.S. on a second, more detailed agreement, which would regulate the operation of the Ukraine Recovery Investment Fund – a bilateral structure to be created by Ukraine and the U.S. Ukraine would be expected to invest 50% of the future income from new mineral resource developments into this fund. At the same time, the agreement was not supposed to apply to the current income of Naftogaz and Ukrnafta.

The signing of the agreement was canceled on February 28 after a confrontation between Ukrainian President Volodymyr Zelenskyy, U.S. President Donald Trump, and U.S. Vice President Jay D. Vance at the White House.

On March 3, Volodymyr Zelenskyy stated that Kyiv was ready to sign an agreement with the U.S. on mineral resources, provided there was mutual readiness from both sides and consideration of Ukraine’s position.

Later, U.S. Republican Congressman Brian Fitzpatrick, following negotiations between Zelenskyy and Head of the President’s Office Andriy Yermak, announced that an agreement between the U.S. and Ukraine on extracting critical minerals would be signed in the shortest possible time.

On March 11, the President’s Office announced that Ukraine and the U.S. had agreed to “as soon as possible” conclude a comprehensive agreement on the development of critical mineral resources.

On March 26, U.S. Secretary of the Treasury Scott Bessent reported that the U.S. government had prepared a “full-fledged” version of the mineral resources agreement, which could be signed as early as the next week.

Ksenia Kulakova

Ukraine Front Lines