Ukraine and the USA have stepped up talks regarding the minerals deal, specifically focusing on establishing a shared Investment Fund. As they finalize the comprehensive agreement, both sides have also endorsed an Expression of Interest document.
What does this document contain, and what commitments does it impose on the Ukrainian side – as discussed in the RBC-Ukraine article?
Takeaways
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On the evening of April 17, Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko joined forces with U.S. Treasury Secretary Scott Bessent to sign an agreement called the ” Memorandum of Intent Between the Government of the United States of America and the Government of Ukraine Regarding the Completion of the Official Accord for Economic Collaboration and Reconstruction Investment Fund.”
On April 18th, early in the day, the Ministry of Economy released the memo’s content.
This document is of a framework and organizational nature; it outlines the peculiarities of the process of preparing the agreement text,
Therefore, it does not include provisions concerning the responsibilities of the parties related to minerals or other financial activities.
Clear timeframes for further negotiations
The memo indicates that Ukrainian Prime Minister Denys Shmyhal will travel to Washington next week starting from April 21st. During his visit, he is scheduled to meet with Secretary Scott Bessent to “offer top-tier backing for finalizing the technical talks regarding the conditions of the accord.”
The memo further requires that both the American and Ukrainian negotiation teams submit a report on their advancements towards their goals.
finishing the Agreement by April 26
By this date, all discussions should conclude to ensure that the agreement can be signed at the earliest opportunity. The last item in the memorandum states that the parties affirm their commitment.
to complete the preparation of the necessary documents for the official conclusion of the agreement as quickly as possible.
Image: Ukrainian Minister of Economy Yuliia Svyrydenko signs the memorandum for the mineral agreement (Ministry of Economy Press Service)
Considering Ukraine’s Eurointegration course
A key political element within the document is that the
The USA supports Ukraine’s desire to prevent conflict.
among the stipulations of the upcoming Agreement and our nation’s commitments made as part of the EU membership process.
Economically speaking, it is crucial that the
American side recognizes Kyiv’s previously assumed financial obligations to other creditors
For instance, this consideration includes Ukraine’s outstanding debts to entities such as the IMF, various EU nations, Canada, the World Bank, along with additional financial organizations.
Acknowledgment of the parts played by the USA and Ukraine
The initial clause of the memorandum indicates that the USA has offered considerable financial and material assistance to Ukraine from the onset of the comprehensive conflict. Additionally, both sides recognize Ukraine’s role in enhancing global peace and stability by voluntarily giving up nuclear arms during the 1990s.
What topics will the upcoming agreement with the USA cover?
The memo indicates that both the American and Ukrainian sides wish to contribute to a “free, sovereign, and secure Ukraine” and aim for enduring peace and a long-lasting partnership.
The parties aim to establish a Reconstruction Fund as part of their economic alliance.
between the two countries.
Mention of previous negotiations
The document mentions that on April 11-12, the American and Ukrainian teams conducted earlier fruitful technical talks in Washington D.C. Following these discussions, Scott Bessent noted that both sides were nearly ready to sign off on an agreement.
On April 16, the Bloomberg news outlet reported that the U.S. had eased its monetary requirements for Ukraine. The Biden administration decreased its projected support for Ukraine during the conflict from an initial $300 billion down to approximately $100 billion. This revised number aligns closely with Ukraine’s own assessment, estimated at around $90 billion in aid expected from Washington. However, the U.S. maintains that funds disbursed so far should be considered part of their contribution towards a forthcoming investment fund.
On the same day, Deputy Minister of Economy Taras Kachka stated that the subsequent round of talks is set for April 24th.
At a press conference held on April 17, President Volodymyr Zelenskyy commented that the discussions from April 11-12 had been “constructive and fruitful,” indicating progress toward mutual understanding between the involved parties. According to him, even though they continue working on drafting the comprehensive international accord, the initial suggestion made by the U.S. was for them to sign an Expression of Interest document. The Ukrainian president welcomed this proposition favorably and with enthusiasm. He viewed the potential signing of such a memorandum as merely the inaugural phase leading up to what could be a broader-ranging economic pact.
Zelenskyy noted that the issue of the gas transmission system is not included in the text of the agreement, and the USA is not insisting on this. Ukraine continues to defend the position on the impossibility of transporting Russian gas.
Image: U.S. Treasury Secretary Scott Bessent digitally signs the memorandum regarding the mineral agreement (Ministry of Economy Press Office)
Which provisions are absent from the memo?
The memo doesn’t outline the specific quantity of assistance offered by the U.S. to Ukraine starting from 2022. Furthermore,
the memorandum fails to mention any
security guarantees for Ukraine
The document merely indicates that “Both the USA and Ukraine aspire to achieve enduring peace in Ukraine as well as a long-lasting partnership between their respective populations and governing bodies.”
It remains uncertain whether Ukraine’s objection concerning investment limitations within the country imposed by the EU will be resolved. Earlier, the collaboration conditions suggested in Washington offered advantages specifically to investors from America. Both Ukraine and the European Union viewed these terms as inconsistent with EU law and deemed them unsuitable for Kyiv.
The initial effort to sign the agreement did not succeed.
Ukraine and the USA had planned to sign a framework agreement on minerals towards the end of February 2025; however, this was delayed because of disagreements between Ukrainian President Volodymyr Zelenskyy and US President Donald Trump during discussions at the White House.
The first version of the accord suggested setting up a Reconstruction Investment Fund, where half of its funding would come from Ukraine via forthcoming mining tax revenues. However, America’s fiscal responsibilities remained undefined within this framework. This fund aimed to distribute resources towards rebuilding efforts in Ukraine annually; meanwhile, additional investments could target areas outside of Ukraine as well.
Following this, the U.S. suggested to Kyiv that they transition immediately from a preliminary pact to an all-encompassing agreement. As stated by Ukrainian President Volodymyr Zelenskyy, the revised version of the deal encompasses clauses that were formerly dismissed by both sides.
In late March, Member of Parliament Yaroslav Zhelezniak released the content of the revised agreement, which placed Ukraine at a significant disadvantage. According to this proposed document, the U.S. would hold most of the voting power within the fund’s governing body. Additionally, the resources allocated through this mechanism were set to be transferred overseas after conversion into dollars, with priority benefits going to the American party under the terms of operation of the fund.
In early April, President Donald Trump from the White House claimed that Zelenskyy was considering backing out of the deal concerning rare earth minerals, describing such an action as “a very, very significant error” for Ukraine.
After that, on April 11–12, technical negotiations between Washington and Kyiv on the agreement took place in the USA. On April 16, Yuliia Svyrydenko reported significant progress in negotiations with the United States regarding the minerals deal. The future document includes the creation of a fund for investments in Ukraine’s recovery.
