Here's how Trump spared US taxpayers from paying for Ukraine military aid with long-awaited minerals deal

Sky News AU

02-05-2025

President Trump followed through on a promise to make Ukraine pay for its military aid with the new mineral rights agreement between Washington and Kyiv, which creates a new path for the US to send weapons to the eastern European nation — without spending a single taxpayer dollar.
The agreement, inked on Wednesday after months of negotiations, created a shared investment fund to which both nations will contribute — including through oil, gas and mineral rights licenses sold in Ukraine — with the profits split 50/50.
Instead of investing money into the fund, the United States reserves the option to earn credit toward their total contribution equal to the cost of any military equipment, technology or training it sends across the Atlantic, according to the deal.
'If, after the effective date, the Government of the United States of America delivers new military assistance to the Government of Ukraine in any form — including the donation of weapons systems, ammunition, technology or training — the capital contribution of the U.S. Partner will be deemed to be increased by the assessed value of such military assistance,' the mineral deal said.
The agreement does not preclude the US from dispatching remaining military aid approved by Congress under former President Joe Biden — which is expected to run out by next month — nor does it require the US to sell any military aid to Kyiv.
Exactly how much each side will be required to contribute to the fund has yet to be determined, as Ukraine's Economy Minister Yulia Svyrydenko said logistical talks are ongoing.
Once those talks conclude, a second document with 'all the formal details about the operation and how it would go,' will be sent to Ukraine's Verkhovna Rada parliament for ratification, a process Kyiv-based Center for European Policy Analysis senior fellow Hanna Shelest said could take about a month.
'What I heard from a few diplomats in Ukraine is that the US wanted us to sign it immediately,' Shelest said, 'so I understand that a draft is available, but [the] Ukrainian side said that we cannot sign it without ratification.'
Ukrainians hope the agreement might reverse Trump's refusal to sell critical air-defense systems as Russia has bombarded the country with massive drone, bomb and missile assaults.
Ukrainian President Volodymyr Zelensky last month said he asked Trump if Ukraine could purchase up to 10 Patriot missile systems — which are only made by the US — for $15 billion, only to be turned down by the president.
Some Ukrainian observers say the the deal reflects their country's understanding of the transactional approach of the Trump administration.
'The Ukrainians' mistake was thinking that Trump wanted this so badly that they could leverage it,' one source familiar with Kyiv's strategy told The Post, noting that the deal was put on the back burner following an explosive Feb. 28 Oval Office argument involving Trump, Zelensky and Vice President JD Vance.
Lt. Denis Yaroslasvky, who commands a special reconnaissance unit for the Ukrainian Armed Forces, told The Post that the country's leaders must complement Trump's approach, which he said was 'immune to emotional appeals.'
'Only pragmatic economic proposals matter,' Yaroslavsky said. '… Today, Ukraine has a small but real chance to leverage this approach to achieve a swift cease-fire.
'The is the first step, hopefully it will entail a merger in the great alliance of our countries.'
Some analysts have noted that while the US is not required to sell any weapons to Ukraine, the provision acts as a check on Russia by reminding them that the Trump administration reserves the right to further equip Ukraine.
The Kremlin apparently recognized the significance Thursday, as Russian Security Council Deputy Chairman Dmitry Medvedev blasted Trump over the deal, sarcastically praising the US leader for making a deal with a nation that will soon 'disappear.'
'Trump has finally pressured the Kyiv regime to pay for US aid with mineral resources,' he posted to Telegram. 'Now, the country that is about to disappear will have to use its national wealth to pay for military supplies.'
Originally published as Here's how Trump spared US taxpayers from paying for Ukraine military aid with long-awaited minerals deal