President Donald Trump and Ukrainian President Volodymyr Zelenskyy are poised to sign an agreement that marks a significant step forward in their changing relationship. The deal sets up a cooperative structure whereby a jointly owned fund will receive revenues from Ukraine’s prospective oil, gas, and mineral projects, excluding current operations. This new approach stands in stark contrast to earlier proposals that envisioned full U.S. ownership over the revenues.

The framework indicates that upon signing the initial document, both parties will enter subsequent negotiations to define control parameters for the fund and to iron out the finer financial details. Notably, the Ukrainian Cabinet’s recent approval of the new deal version demonstrates an effort to rebalance the previous proposals where Ukraine had resisted large-scale repayment expectations from U.S. aid.

Previously, negotiations had taken a controversial turn with sharp exchanges—Trump had dubbed Zelenskyy a “dictator” and criticized Ukraine’s approach to U.S. assistance. In response, Zelenskyy adamantly rejected any notion of repaying American funds, emphasizing that even a token debt repayment would set a dangerous precedent, highlighting ongoing tensions regarding the control and use of Ukraine’s natural resource revenues.

Economists and political experts have weighed in on the ambiguity of the deal’s financial incentives for the U.S. Some suggest that U.S. companies might win extraction contracts or secure discounted mineral rates, yet warn that commercial benefits could take decades to materialize given the complexity and timespan of rare earth mining operations. The vague language leaves it uncertain whether the U.S. government or American businesses will be the primary beneficiaries of the eventual exploitation of Ukraine’s critical mineral deposits.

In parallel, Ukraine is leveraging the deal to seek broader international support and robust security guarantees, fearing further Russian aggression. Although the agreement includes provisions that symbolically bolster Ukraine’s pursuit of lasting peace, it also reflects a careful balancing act, with U.S. officials underscoring that any future security measures would largely fall on European allies rather than inviting a heavy U.S. military presence in the region.

Finally, the broader geopolitical context reveals that both nations have interests beyond immediate financial returns. While Trump seems to use the deal as a repayment mechanism for past aid and possibly as a countermeasure against China’s dominance in rare earth markets, Ukraine views the agreement as a strategic tool to secure its sovereignty and deter future invasions. Meanwhile, Russia has hinted at its own willingness to collaborate with foreign partners for resource extraction, further complicating regional dynamics.