Ukraine has agreed terms with the United States on a landmark minerals deal which could bring peace to the war-torn country, it is understood.
Volodymyr Zelensky's officials have said Kyiv is now ready to sign the agreement on developing its mineral resources after the US let go its demands for a right to $500billion in potential oil and gas revenue from Ukraine.
But the officials argued that they had negotiated far more favourable terms - and have hinted the deal would be a way to improve relations with Donald Trump's US after three years of war.
"The minerals agreement is only part of the picture. We have heard multiple times from the US administration that it's part of a bigger picture," Olha Stefanishyna, Ukraine's Deputy Prime Minister told the Financial Times on Tuesday.
Volodymyr Zelensky's officials have said Kyiv is now ready to sign the agreement on developing its mineral resources
GETTYJust last week, top US National Security Adviser Mike Waltz told Fox News the Ukrainian President must "tone it down and take a hard look and sign that deal" - though that was before the US reportedly dropped its multi-billion-dollar revenue demand.
Ukraine rejected it - sparking a trans-Atlantic row in which Trump labelled Zelensky a "dictator".
The final version of the agreement, the FT reports, establishes a fund into which Ukraine would pay 50 per cent of its proceeds from the "future monetisation" of state-owned mineral resources.
And following through with earlier American promises of investment, the fund would invest in "projects" in Ukraine.
LATEST FROM UKRAINE:
The Ukrainian premier had said Trump was in a 'disinformation space' after he called Zelensky a 'dictator'REUTERSBut in a sign that Ukraine may have made its own concessions, the agreement also fails to make any reference to US security guarantees - which were originally a "red line" for Zelensky in return for striking a deal.
And Zelensky will need the approval of Ukraine's parliament before finally signing off on the accord.
As well as coming together with Ukraine on minerals, the US also voiced its support for today's news that Sir Keir Starmer would be upping Britain's defence spending to 2.5 per cent of GDP from 2027.
American Defense Secretary Pete Hegseth, writing on social media, said: "Just got off the phone with John Healey, the UK Secretary of State for Defencem who confirmed they will increase defense spending to 2.5 per cent of GDP, and eventually much further.
Donald Trump's Defense Secretary Pete Hegseth has lent his support to Sir Keir Starmer's defence spending hikeREUTERS"A strong step from an enduring partner," he added.
Starmer will meet Trump in Washington on Thursday - where he will be attempting to reassure Trump that Europe will provide support and security guarantees to Kyiv if peace talks with Russia are successful.
He has also called for an American "backstop" to any security guarantee from Europe, which "will be vital to deter Russia from launching another invasion in just a few years' time".
"The US is our most important bilateral alliance," Starmer said. "So this week, when I meet President Trump I will be clear. I want this relationship to go from strength to strength."
