Ukraine reportedly agrees to critical rare minerals deal with the U.S.

Ukraine and the United States reached an agreement over access to Kyiv’s deposits of rare earth minerals, according to media reports, as Kyiv seeks to reinforce its ties with its key wartime transatlantic ally under the Trump administration.

The draft deal envisages that the two countries will jointly develop Ukraine’s mineral resources, including oil and gas, and sees the U.S. drop demands for a right to $500 billion in potential revenue from the agreement, according to the Financial Times, which first reported the deal on Tuesday.

U.S. President Donald Trump appeared to confirm progress regarding the deal, which has yet to be inked.

“I hear that [there is a deal], I hear that [Ukrainian President Volodymyr Zelenskyy]’s coming on Friday,” Trump told reporters in the Oval Office on Tuesday.

“It’s certainly ok with me if he’d like to, and he would like to sign it together with me. And I understand that’s a big deal, a very big deal,” he added. “It’s rare earths, and other things,” Trump said, without giving further details.

Trump said the agreement offered Kyiv billions of dollars in aid and “lots of equipment and military equipment and the right to fight on, and originally, the right to fight.”

The text of the deal does not give Ukraine specific security guarantees, according to the Financial Times — a key issue for Kyiv, as it looks to a post-war future in which it’s protected from further Russian aggression.

CNBC has reached out to the Ukrainian Ministry of Foreign Affairs and to the U.S. State Department for comment. Neither CNBC nor NBC News have seen a copy of the “framework agreement.”

Bloomberg News and Sky News also reported that agreement terms were brokered.

“As of today, this agreement is called the ‘Agreement on Establishing the Rules and Conditions of the Investment Fund for the Reconstruction of Ukraine.’ This is a preliminary agreement that will have legal force. It provides for the creation of an investment fund for the reconstruction of Ukraine, which Ukraine and the United States will jointly manage and fill,” he said, according to comments reported by RBC-Ukraine news agency.

“The preamble of the agreement very clearly states that taking into account the desire of the American people to invest with Ukraine in a free, sovereign, and secure state, this is the beginning of the agreement. I am directly quoting the text, and this is important for us to understand the purpose of the agreement. The security nature of this agreement is the number one priority for our country, the government, and the President,” he said.

Yuriy Sak, an advisor to Ukraine’s Ministry of Strategic Industries, told CNBC on Wednesday that “the presidents will most probably meet on Friday” and will “finalize the deal,” which he described as a starting point for further economic cooperation and investment.

“It will be a framework agreement and it will be part of the broader negotiating process,”‘ he told CNBC.

“Of course, it’s not going to be an agreement that will comprehensively decide all the issues, but it will be, I repeat, a framework agreement, which will then be part of the process which will be expanded going forward,” he noted.

It’s unclear how much mineral wealth lies within Ukraine, although one Ukrainian official from the economy ministry reportedly said at the weekend that $350 billion worth of natural resources are located in Russian-occupied territories, the Kyiv Independent reported on Sunday.

Ukraine’s Deputy Prime Minister Olha Stefanishyna reportedly led negotiations between Washington and Kyiv on the mineral deal and told the Financial Times on Tuesday that “we have heard multiple times from the U.S administration that it’s part of a bigger picture.”

“Ukraine, I will say they’re very brave, and they’re good soldiers, but without the United States and its money and its military equipment, this war would have been over in a very short time,” Trump added on Tuesday.

Ukraine’s leadership has come under sustained pressure to ink a deal with the U.S. since President Donald Trump‘s inauguration in January. The president initially proposed that Kyiv should grant the U.S. 50% ownership of its rare earth minerals as recompense for military aid it has given Ukraine. Trump has also previously claimed in an interview that a deal would give the U.S. access to $500 billion worth of rare earth minerals and that this would be payback for aid already received by Kyiv.

Ukraine’s President Volodymyr Zelenskyy disputed the amount of wartime aid the U.S. has given Ukraine, putting the figure at around $100 billion. Independent analysis by the Kiel Institute for the World Economy puts the amount of U.S. support committed to Ukraine at 114.2 billion euros, or $119.5 billion.

“From Trump I want an understanding what Ukraine can get, as well as security guarantees and contingent after the hot stage of war is ended,” Zelenskyy told the “Ukraine: Year 2025 forum” on Sunday, on the eve of the third anniversary of Russia’s invasion of Ukraine.

“An agreement should be win-win for American businesses and Ukraine’s people,” he added, in comments translated by NBC News. “I’m not signing something that 10 generations of Ukrainians will be paying off.”

“About [the] $500 billion. Let’s deal with the figure first. I know we had $100 billion. That’s a fact. I’m not going to acknowledge $500 billion …The second thing, to be honest, I’m not even ready to fix 100 billion. I’ll explain why. Because we shouldn’t recognize grants as debts,” he said.

Zelenskyy had also noted that any assistance Ukraine was still receiving was a legacy of the previous U.S. administration under Joe Biden, adding that “as far I understand, the deal is that there is a condition for a new assistance.”

In separate comments last week, Zelenskyy said he could not “sell” his country and that an initial proposal from the U.S. had not offered Ukraine the security guarantees it sought.

The Ukrainian leader last week reportedly ordered his ministers not to sign off on any deal, saying the proposal that had been put forward was too focused on U.S. interests and offered Ukraine very little in return.