• Kyiv and Washington are holding a new round of talks on a long-awaited minerals deal, expected to be decisive in concluding negotiations on a final agreement
• Work on a deal has been ongoing for months, as President Trump has sought compensation for US aid to Ukraine, while Kyiv wants  security guarantees from Washington against the possibility of a future war with Moscow
• While details on a new updated version of an earlier deal remain scarce, a recent memorandum of intent between the US and Ukraine speaks of the American people’s 'desire to invest alongside the Ukrainian people in a free, sovereign and secure Ukraine'

ISTANBUL

Ukraine and the US are set to hold another round of talks this week on a long-awaited minerals deal that Washington says could help offset the billions of dollars in military aid sent to Kyiv since its war with Russia began over three years ago.

The timing of the talks was confirmed by Ukrainian Deputy Economy Minister Taras Kachka in an interview with state news agency Ukrinform on April 18. A day earlier, Economy Minister Yulia Svyrydenko announced that Ukraine had signed a “memorandum of intent” with the US, laying the groundwork for a broader economic partnership.

The agreement, she said, also envisions an investment fund to support Ukraine’s post-war reconstruction.

Negotiators from both sides are expected to report on progress by April 26, with the aim of wrapping up discussions and signing a final agreement soon after, according to the memorandum.  

Oval Office spat stalls progress

Talks on the minerals deal have been in the works since the early days of US President Donald Trump’s second term. By late February, Trump declared that the deal was “very close” to completion and said Ukrainian President Volodymyr Zelenskyy would travel to Washington on Feb. 28 to finalize it.

But the highly anticipated signing collapsed after a heated Oval Office exchange between Zelenskyy, Trump, and US Vice President JD Vance.

According to sources familiar with the meeting, Trump and Vance berated Zelenskyy, accusing him of showing little appreciation for years of American military and financial backing. Zelenskyy pushed back, defending his wartime leadership and stressing that the conflict in Ukraine posed risks to global security — including for the US.

Zelenskyy left the White House after the confrontation, and both the signing ceremony and a planned news conference were canceled.

The fallout led to a temporary suspension of US military aid to Ukraine in March. But the two sides returned to the negotiating table weeks later, culminating in last week’s memorandum and renewed momentum for the deal, with Ukraine receiving an updated version of the agreement on March 25.  

What to expect?

While details remain scarce, the memorandum and public comments from senior officials hint at the potential content and scope of the deal.

Published by Ukraine’s Economy Ministry, the memorandum outlines mutual intent to set up a dedicated investment fund to support Ukraine’s economic recovery. But it does not specify how the fund would be financed or managed.

In February, Trump said any deal should compensate the US for the vast aid it has provided Kyiv, citing a figure as high as $500 billion in rare earth elements — a demand Ukraine rejected.

Ukraine has consistently rejected classifying US military aid as debt since the conflict began, with Zelenskyy specifically defining the assistance as “grants.”

Zelenskyy, meanwhile, has insisted that a successful agreement must also contribute to longer-term security guarantees for Ukraine, something he sees as essential for Kyiv avoiding a new war with Moscow later on.

The current memorandum makes no mention of such guarantees but speaks of the American people’s “desire to invest alongside the Ukrainian people in a free, sovereign and secure Ukraine.”

It also states that the US respects Ukraine’s intention to avoid provisions inconsistent with its obligations as part of its EU accession process or with deals struck with international lenders and creditors.

Ukraine applied for EU membership just days after Russia’s invasion in February 2022 and was granted candidate status in June of that year. Since then, it has taken steps to align with EU regulations and deepen ties with the bloc across sectors including trade, energy, and finance.

Earlier this month, Ukrainian Deputy Foreign Minister Andrii Sybiha underscored that any minerals deal “must be mutually acceptable” and consistent with Ukraine’s EU integration path, which he called a “core principle” of its foreign policy.