Ukraine agrees to 50-50 resource split with U.S. in $120B aid repayment minerals deal
By isabelle // 2025-05-01
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  • The Trump administration secured a deal requiring Ukraine to give the U.S. 50% of revenues from critical minerals, oil, and gas in exchange for continued aid.
  • The agreement followed tense negotiations, with Ukraine resisting initial demands to repay $350 billion in past aid before settling on the revenue split.
  • U.S. pressure tactics included rerouting a Ukrainian official’s flight and threatening to withhold aid if terms weren’t signed.
  • Critics, including Russian officials and Ukrainian lawmakers, argue the deal weakens Ukraine’s sovereignty and locks it into an unequal partnership.
  • Despite compromises, the deal lacks strong U.S. security guarantees, raising concerns about Ukraine’s long-term independence and NATO prospects.
President Donald Trump's administration has secured a controversial minerals deal with Ukraine, requiring the war-torn nation to relinquish half of its revenues from critical minerals, oil, and gas projects to the U.S. in exchange for ongoing military and financial support. The agreement, signed Wednesday in Washington, establishes a joint fund managed by both nations to channel $120 billion in U.S. aid to Ukraine—a figure that has fueled political scrutiny over whether Kyiv is being coerced into ceding its sovereign resources to repay taxpayer-funded foreign largesse.

Tense negotiations and pressure tactics

The deal capped a tense negotiation process marked by U.S. pressure tactics and Ukrainian resistance. According to sources, the Trump team initially demanded that Ukraine repay all $350 billion in U.S. aid given since 2022, but after Kyiv balked, Washington dropped the debt repayment clause while insisting on a 50/50 revenue split for future joint projects. Pressure mounted as Ukrainian Deputy Prime Minister Yulia Svyrydenko's plane was allegedly rerouted mid-flight to ensure she would finalize terms. Treasury Secretary Scott Bessent reportedly warned her delegation, "Sign all agreements, or go back home," just hours before the signing. A source told Bloomberg that under the final agreement, U.S. military aid will count as contributions to the new fund, with shared profits split evenly between the nations. The arrangement has drawn fierce criticism within Ukraine and beyond. Russian Deputy Security Council Head Dmitry Medvedev seized on the deal to argue Kyiv has been "broken" into surrendering its natural wealth. "Now they will have to pay for military supplies with the national wealth of a disappearing country," he said on Telegram. His remarks echo fears among Ukraine's European allies that handing over resource control weakens Kyiv's long-term independence. Ukrainian lawmakers were similarly skeptical. Earlier versions of the deal drew derision from parliamentary members and Zelensky advisors, who labeled it a "horror" for offering no U.S. security guarantees. While Prime Minister Denys Shmyhal claimed the final draft excludes repayment of past aid, critics counter that linking future military financing to resource profits amounts to a slow-motion debt arrangement.

An uneasy compromise

"The devil is in the details," said parliamentarian Oleksandr Merezhko, noting that Kyiv "managed to dodge turning prior aid into debt." Others, like advisor Mykhailo Podolyak, framed the deal as a geopolitical triumph, insisting Russia has "lost" by failing to bar Kyiv from resource partnerships. Stateside, analysts warned the agreement could bolster Trump's domestic political capital while locking Ukraine into an unequal corporate partnership. "The U.S. is beginning to see itself as a sort of co-owner of Ukraine," former Kremlin adviser Sergei Markov predicted, arguing it could delay peace talks by making Washington a financial stakeholder in prolonged conflict. Zelensky's team initially resisted pressure to sign, reportedly resisting U.S. demands for over 80% revenue splits. But with Russia's war showing no end in sight and Kyiv's budget dependent on Western handouts, Ukraine's hand was forced.  Any optimism about the deal is tempered. Parliament must still ratify the agreement, and lawmakers cautioned that it could take a while. Even supporters admit the deal's risks. A leaked draft reveals Washington's security guarantees remain patchy, failing to address Kyiv's demands for NATO membership or direct defense guarantees. For a nation already projected to lose parts of its territory, surrendering half its extractive industries to another nation raises profound questions about where Ukraine's loyalties truly lie. Sources for this article include: ZeroHedge.com Reuters.com ABCNews.go.com
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