Full Text: Kyiv Allegedly Leaks ‘Free, Sovereign, and Secure Ukraine’ Rare Earth Mineral Deal

A Ukrainian news publisher claims to have released the full text of the alleged Ukraine rare earths mineral deal ahead of expectations that President Volodymyr Zelensky will sign it on Friday, revealing language stopping short of the security guarantees Kyiv demanded but nevertheless establishing a clear future interest for the United States in the country’s wellbeing.

The United States and Ukraine agreed on the text of an initial framework for a mineral rights deal on Tuesday, and may be signed by President Donald Trump and President Volodymyr Zelensky in person as soon as tomorrow. But now a Ukrainian newspaper claims to have published the full text of that deal, seeming to reveal the concessions made to both sides to get the agreement over the line.

While Ukraine had initially demanded full security guarantees in return for access to its vast, and mostly untapped, mineral wealth the Kyiv negotiation team did not succeed in that ambition. Nevertheless the document seems to use perhaps the strongest language in support of Ukraine’s future from the Trump Whitehouse yet.

The document, as published by the Kyiv Independent, proclaims the desire of the American people to “invest alongside Ukraine in a free, sovereign and secure Ukraine”, and furthermore that: “The Government of the United States of America supports Ukraine’s efforts to obtain security guarantees needed to establish lasting peace.”

Importantly, in lines that appear tailored to exclude other powers that suddenly seem excited by Ukraine’s mineral wealth and have proclaimed an interest in also cutting deals with the U.S., including Russia and the European Union, the claimed agreement makes the exclusivity of the deal plain. In language evidently aimed at Russia but without explicitly naming them — a move that may also allow future interpretation to exclude China from Ukraine’s post-war reconstruction — the document reads: “United States of America and Ukraine wish to ensure that those States and other persons that have acted adversely to Ukraine in the conflict do not benefit from the reconstruction of Ukraine following a lasting peace”.

In language sure to mollify some feelings in Kyiv, the published text also acknowledges Ukraine’s voluntary surrendering of its nuclear weapons in the 1990s. This move has frequently been cited by President Zelensky during the war as a reminder of the Budapest memorandum, which agreed the end of Ukraine’s massive inherited stock of Soviet-era warheads in return for territorial autonomy promises from Russia and allies, the United States, and the United Kingdom.

The agreement as known now is an initial framework, providing structure for future subsequent agreements, and consequently much remains unknown. While it states the investment fund is a vehicle for economic growth in Ukraine post-war, exactly what both governments will get out of it and how ownership will be structured is undefined so far.

The text of the deal as claimed by the Kyiv Independent: 

WHEREAS the United States of America has provided significant financial and material support to Ukraine since Russia’s full-scale invasion of Ukraine in February 2022;

WHEREAS the American people desire to invest alongside Ukraine in a free, sovereign and secure Ukraine;

WHEREAS the United States of America and Ukraine desire a lasting peace in Ukraine and a durable partnership between their two peoples and governments;

WHEREAS the United States of America and Ukraine recognize the contribution that Ukraine has made to strengthening international peace and security by voluntarily abandoning the world’s third largest arsenal of nuclear weapons;

WHEREAS the United States of America and Ukraine wish to ensure that those States and other persons that have acted adversely to Ukraine in the conflict do not benefit from the reconstruction of Ukraine following a lasting peace;

NOW, THEREFORE, the Government of the United States of America and the Government of Ukraine (each, a ‘Participant’) hereby enter into this Bilateral Agreement Establishing Terms and Conditions for a Reconstruction Investment Fund to deepen the partnership between the United States of America and Ukraine, as set forth herein.

1. The Governments of Ukraine and the United States of America, with the aim of achieving lasting peace in Ukraine, intend to establish a Reconstruction Investment Fund (Fund), partnering in the Fund through joint ownership, to be further defined in the Fund Agreement. Joint ownership will take into consideration the actual contributions of the Participants as defined in Sections 3 and 4. The Fund will be jointly managed by representatives of the Government of Ukraine and the Government of the United States of America. More detailed terms pertaining to the Fund’s governance and operation will be set forth in a subsequent agreement (the Fund Agreement) to be negotiated promptly after the conclusion of this Bilateral Agreement. The maximum percentage of ownership of the Fund’s equity and financial interests to be held by the Government of the United States of America and the decision-making authority of the representatives of the Government of the United States of America will be to the extent permissible under applicable United States laws.

Neither Participant will sell, transfer or otherwise dispose of, directly or indirectly, any portion of its interest in the Fund without the prior written consent of the other Participant.

2. The Fund will collect and reinvest revenues contributed to the Fund, minus expenses incurred by the Fund, and will earn income from the future monetization of all relevant Ukrainian Government-owned natural resource assets (whether owned directly or indirectly by the Ukrainian Government), as defined in Section 3

3. The Government of Ukraine will contribute to the Fund 50 percent of all revenues earned from the future monetization of all relevant Ukrainian Government-owned natural resource assets (whether owned directly or indirectly by the Ukrainian Government), defined as deposits of minerals, hydrocarbons, oil, natural gas, and other extractable materials, and other infrastructure relevant to natural resource assets (such as liquified natural gas terminals and port infrastructure) as agreed by both Participants, as may be further described in the Fund Agreement. For the avoidance of doubt, such future sources of revenues do not include the current sources of revenues which are already part of the general budget revenues of Ukraine. Timeline, scope and sustainability of contributions will be further defined in the Fund Agreement.

The Fund, in its sole discretion, may credit or return to the Government of Ukraine actual expenses incurred by the newly developed projects from which the Fund receives revenues.

Contributions made to the Fund will be reinvested at least annually in Ukraine to promote the safety, security and prosperity of Ukraine, to be further defined in the Fund Agreement. The Fund Agreement will also provide for future distributions.

4. Subject to applicable United States law, the Government of the United States of America will maintain a long-term financial commitment to the development of a stable and economically prosperous Ukraine. Further contributions may be comprised of funds, financial instruments, and other tangible and intangible assets critical for the reconstruction of Ukraine.

5. The Fund’s investment process will be designed so as to invest in projects in Ukraine and attract investments to increase the development, processing and monetization of all public and private Ukrainian assets including, but not limited to, deposits of minerals, hydrocarbons, oil, natural gas, and other extractable materials, infrastructure, ports, and state-owned enterprises as may be further described in the Fund Agreement. The Government of the United States of America and the Government of Ukraine intend that the investment process will lead to opportunities for distribution of additional funds and greater reinvestment, to ensure the sufficient supply of capital for the reconstruction of Ukraine as set out in the Fund Agreement.

The Participants reserve the right to take such action as necessary to protect and maximize the value of their economic interests in the Fund.

6. The Fund Agreement will include appropriate representations and warranties, including those necessary to ensure that any obligations the Government of Ukraine may have to third parties, or such obligations that it may undertake in the future, do not sell, convey, transfer pledge, or otherwise encumber the Government of Ukraine’s contributions to the Fund or the assets from which such contributions are derived, or the Fund’s disposition of funds.

In drafting the Fund Agreement, the Participants will strive to avoid conflicts with Ukraine’s obligations under its accession to the European Union or its obligations under arrangements with international financial institutions and other official creditors.

7. The Fund Agreement will provide, inter alia, an acknowledgment that both the Fund Agreement and the activities provided for therein are commercial in nature.

The Fund agreement shall be ratified by the Parliament of Ukraine according to the Law of Ukraine ‘On International Treaties of Ukraine.’

8. The Fund Agreement will pay particular attention to the control mechanisms that make it impossible to weaken, violate or circumvent sanctions and other restrictive measures.

9. The text of the Fund Agreement will be developed without delay by working groups chaired by authorized representatives of the Government of Ukraine and the Government of the United States of America. Contact persons responsible for preparing the Fund Agreement on the basis of this Bilateral Agreement are: from the Government of the United States of America: the Department of the Treasury; from the Government of Ukraine: Ministry of Finance and Ministry of Economy.

10. This Bilateral Agreement and the Fund Agreement will constitute integral elements of the architecture of bilateral and multilateral agreements, as well as concrete steps to establish lasting peace, and to strengthen economic security resilience and reflect the objectives set forth in the preamble to this Bilateral Agreement.

The Government of the United States of America supports Ukraine’s efforts to obtain security guarantees needed to establish lasting peace. Participants will seek to identify any necessary steps to protect mutual investments, as defined in the Fund Agreement.

11. This Bilateral Agreement is binding and will be implemented by each Participant according to its domestic procedures. The Government of the United States of America and the Government of Ukraine commit to proceed forthwith to negotiate the Fund Agreement.