Ukrainian President Volodymyr Zelensky arrived in the United States on Thursday night (27 February) for discussions with US President Donald Trump. The key focus of their meeting is a significant mineral agreement between the two nations, which has been widely anticipated.

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What does the deal involve?

News outlet The Kyiv Independent obtained the full text of the agreement through a source within the Ukrainian government.

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Here's the key excerpts of the deal:

Ukraine and the United States formalised the deal on 25 February. However, reports suggest that Washington had initially put forward three proposals, two of which Kyiv rejected due to the absence of security provisions.

Speaking to journalists on 26 February, Zelensky stated that the agreement was "well appreciated by our government officials." However, he acknowledged that it does not yet include specific security guarantees for Ukraine.

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"The important thing is that the agreement mentions 'partners,' and this fund is Ukrainian-American, not American," he said.

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This initial agreement is expected to be followed by a Fund Agreement, which will further outline the workings of the Reconstruction Investment Fund established by both countries. For this to take effect, Ukraine’s parliament will need to ratify it.

The document, titled "Bilateral Agreement Establishing Terms and Conditions for a Reconstruction Investment Fund," stresses the continued support of the US for Ukraine following Russia’s full-scale invasion in February 2022.

It underscores the partnership between the two nations in rebuilding Ukraine while ensuring that entities or individuals hostile to Ukraine do not benefit from reconstruction efforts.

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Some crucial points of the agreement include:

Creation of the Reconstruction Investment Fund – This fund will be jointly owned and managed by both governments, with specific ownership terms to be determined in the forthcoming Fund Agreement. Neither party can sell or transfer their share without mutual consent.

Revenue contribution – Ukraine will contribute 50% of revenues from future monetisation of its natural resource assets, which include minerals, oil, natural gas, and infrastructure like LNG terminals and ports. Existing revenue sources that form part of Ukraine’s national budget are excluded.

Reinvestment in Ukraine – Funds collected will be reinvested annually into Ukraine’s security, stability, and prosperity. The terms of these investments will be clarified in the Fund Agreement.

Long-term US Commitment – The agreement outlines Washington’s long-term financial support for Ukraine’s development. Contributions may include funds, financial instruments, and other assets vital for reconstruction.

Investment strategy – The fund will attract investments to enhance Ukraine’s natural resource sector, infrastructure, and state-owned enterprises, ensuring sustainable economic growth.

Security measures – Provisions will be included to prevent any attempts to bypass sanctions or restrictive measures.

Legal and structural considerations – The agreement will align with Ukraine’s commitments to the European Union, international financial institutions, and official creditors.

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Implementation and oversight – A working group led by officials from both governments will draft the Fund Agreement without delay. The US Department of the Treasury and Ukraine’s Ministries of Finance and Economy will be responsible for overseeing its preparation.

(With inputs from agencies)