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Ukraine has agreed with the US on a deal to jointly develop its natural resources, people familiar with the matter said, in what the White House considers a first step toward reaching a ceasefire with Russia.
Ukraine’s Cabinet is expected to recommend on Wednesday that the deal be signed, according to the people, who asked not to be identified discussing private deliberations.
President Donald Trump has pressured Ukraine’s President Volodymyr Zelenskiy to accept the deal, first presented by Treasury Secretary Scott Bessent in Kyiv earlier in February, but which the Ukrainian president rejected.
US officials have said that binding Ukraine to the US through economic ties would provided a de facto security shield. A detailed agreement is expected to be worked out later. The Financial Times reported the accord earlier Tuesday.
The deal came together after US dropped the demand for Kyiv to commit to paying $500 billion from resource extraction to a fund as a form of repayment for US aid.
The framework agreement would create a joint US-Ukraine fund to manage future revenues from the country’s natural resources.
Ukraine sees it as a starting point to obtain US security guarantees in the future.
The deal may also offer Trump a way to encourage buy-in from his supporters for continued backing for Ukraine, particularly if Washington needs Congress to approve additional aid for Ukraine if negotiations with Russia continue to drag on.
Ukraine still relies on US and European allies for weapons and ammunition.
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