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Zelensky Finally Accepts Trump’s Minerals Deal: A Win-Win

by May 3, 2025
May 3, 2025

White House Rapid Response, Public domain, via Wikimedia Commons

Russia captured Crimea under Obama. Under Biden, they launched a full-scale invasion of Ukraine, and for two years, he made no serious effort to stop the war or negotiate a deal that would spare U.S. taxpayers from footing the bill. President Trump promised to resolve the conflict within 24 hours of taking office, but his first two proposals were rejected by Zelensky because they offered financial support in exchange for access to minerals and energy, rather than free money, terms Zelensky initially refused.

Now, Trump has secured a mineral deal that Zelensky has finally accepted. This is the first significant step any world leader has taken toward either ending the war or ensuring that the U.S. receives something in return for the hundreds of billions spent. Democrats and the mainstream media have mocked Trump, calling him everything from a liar to a charlatan because the war didn’t end in 24 hours, but in just over 100 days in office, he has done more than any global leader has done in three years.

President Volodymyr Zelensky has formally signed the long-delayed mineral development agreement with the Trump administration. Finalized on April 30, 2025, the deal establishes a joint U.S.-Ukraine investment framework to develop Ukraine’s reserves of critical minerals, oil, and gas. It marks a shift in U.S.-Ukraine economic cooperation under President Trump’s “mutual benefit diplomacy.”

The agreement replaces an earlier proposal rejected by Kyiv over concerns about revenue sharing and the reclassification of past U.S. aid as debt. Under the new terms, Ukraine retains ownership of its natural resources, and all profits will be reinvested in the country for the first ten years. Both nations will jointly manage the fund, with the U.S. also approving a $50 million military aid package shortly after the deal was signed.

The finalized agreement outlines a number of specific terms favorable to both parties. Ukraine retains full ownership of its natural resources, including subsoil rights, and holds final authority over what can be mined and where. The deal establishes a joint U.S.-Ukraine reconstruction investment fund, into which future U.S. military aid will be counted as investment rather than debt. American companies are granted preferential, but not exclusive, access to new mineral extraction projects, including lithium, graphite, titanium, copper, gold, natural gas, and oil.

All U.S. earnings under the deal are exempt from Ukrainian taxes or levies, and in case of legal conflicts, the agreement takes precedence over Ukrainian domestic law. Although Kyiv pushed for security guarantees, these were not included; however, the presence of U.S. investment is viewed by Ukrainian officials as a long-term deterrent to Russian aggression.

The fund excludes Ukraine’s existing revenue-generating mining and energy operations, meaning profitability will depend entirely on new projects. These new ventures face substantial hurdles, including outdated geological surveys, many dating back to Soviet-era mapping, and a lack of reliable data on the quality, depth, and viability of mineral deposits. Before serious extraction can begin, Ukraine must undertake a full modernization of its geological research using current methods and technologies.

Another major barrier is infrastructure. Mining is among the most energy-intensive industries globally, and Ukraine has lost over half its power generation capacity due to Russian attacks. With only one-third of its prewar electricity grid operational, massive reconstruction of Ukraine’s energy infrastructure will be required to make mineral extraction feasible at scale. These deficiencies pose a risk to private sector investors, who will also be wary of operating in areas near or inside active war zones.

With the new deal, $50 million in U.S. weapons sales to Ukraine were approved under a direct commercial sales (DCS) program. The DCS allows American defense companies to sell directly to Kyiv with U.S. government authorization. This mechanism bypasses the Pentagon’s foreign military sales channel and highlights Trump’s reliance on market-based instruments rather than traditional aid programs. However, Zelensky is not getting everything he wants, as he previously stated Ukraine would require $15 billion just to purchase ten Patriot missile systems.

Ukraine’s mineral potential is significant, but extracting it will be problematic. The country holds around 5% of the world’s critical mineral reserves and has verified deposits of 25 out of 34 raw materials identified as strategic by the European Union. Securing these resources will accelerate U.S. economic decoupling from China and enhance U.S. national security. However,  an estimated $350 billion worth of those resources, including roughly half of Ukraine’s rare earths, are currently located in Russian-occupied territory.

European governments, many of which have provided extensive military support to Ukraine, are notably absent from the deal—underscoring how Trump is a dealmaker, while all Europe knows how to do is write checks. There is speculation that EU nations may want a similar deal in the future, which wouldn’t be bad for the U.S. or for the peace process. The more Western countries are present in Ukraine, the less likely Russia is to attack, as long as that presence is not military.

The agreement represents a sharp political and rhetorical departure from earlier drafts. It recognizes Russia as the aggressor, reaffirms Ukraine’s sovereignty, and includes language supportive of Ukraine’s future EU accession. It does not, however, provide for Ukraine’s accession to NATO, because according to NATO criteria, Ukraine fails the assessment on democracy, corruption, economic development, and is currently involved in an active conflict.

While no binding security guarantee is included, U.S. Treasury Secretary Scott Bessent framed the agreement as an “economic security guarantee” and a signal of America’s long-term stake in Ukraine’s stability. The deal must now be ratified by Ukraine’s parliament before implementation begins.

The deal is an excellent example of President Trump’s transactional business model, demanding that U.S. taxpayers get something in return for their money being sent to a foreign country. And while it provides the financing Ukraine wants, it avoids committing the U.S. to protecting Ukraine militarily.

The post Zelensky Finally Accepts Trump’s Minerals Deal: A Win-Win appeared first on The Gateway Pundit.

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