Ukraine won't sign U.S. rare earths deal without security commitments - The Economist

The framework agreement, approved by Ukraine’s Cabinet on Feb. 26, limits its security provisions to "protection of mutual investments." However, its preamble references a broader "architecture of agreements" and "support in securing security guarantees" — signaling potential further negotiations.

While the initial framework deal does not require ratification by Ukraine’s parliament, the later, more detailed agreement's version will need approval from the Verkhovna Rada.

The agreement, expected to be signed by Zelenskyy and U.S. President Donald Trump on Feb. 28, will establish a joint investment fund for Ukraine’s reconstruction. The Ukrainian side will contribute 50% of future revenues from state resource projects, including mineral extraction, hydrocarbons, oil, gas, and infrastructure such as ports and terminals.

The U.S. initially demanded 100% ownership of the fund and a $500 billion stake, but these conditions were withdrawn. Instead, ownership will be proportional to each side’s investments, suggesting the possibility of additional American financial support.

Despite these revisions, many uncertainties persist, including:

• How the U.S. will oversee the new investment fund?

• What mechanisms will govern fund management?

However, Ukraine appears to have moved away from the U.S.'s initial "bold demands" toward a more balanced joint investment model, the Economist noted.

Negotiations on US-Ukraine minerals deal

On Feb. 25, the Financial Times reported that Ukraine was ready to finalize the agreement after the U.S. dropped its $500 billion revenue claim.

The next day, Zelenskyy confirmed his visit to Washington on Feb. 28 for talks and the official signing of the framework agreement.

That same day, Ukrainian Prime Minister Denys Shmyhal announced that the Cabinet approved the first U.S.-Ukraine deal on creating the investment fund, highlighting six key priorities in the agreement.