Ukraine and the United States have finalized a pivotal agreement granting the U.S. access to Ukraine's significant deposits of rare earth minerals. These minerals are crucial for various technological and industrial applications, making this deal strategically important for both nations. Proposed by Ukrainian President Volodymyr Zelensky, the agreement aims to solidify the U.S.'s financial stake in Ukraine, thereby encouraging continued American support amid the ongoing conflict with Russia. Notably, the agreement has yet to be signed, contingent upon security guarantees from former President Donald Trump.
Ukraine boasts substantial reserves of titanium, lithium, and rare earth metals. The country holds approximately 19 million tonnes of proven graphite reserves, positioning it among the top five global suppliers of this critical mineral. The finalized deal outlines that the U.S. will own the maximum portion of a fund permitted under American law. However, Ukraine will contribute 50% of future proceeds from its state-owned mineral resources, oil, and gas to this fund, which will subsequently invest in projects within Ukraine.
Deputy Prime Minister Olha Stefanishyna underscored that this agreement is part of a broader strategy. The deal not only aims to enhance U.S.-Ukraine economic ties but also seeks to solidify security arrangements vital for Ukraine's stability. Ukraine estimates that it holds about 5% of the world's critical raw materials, making it a valuable partner for the U.S.
The agreement stems from President Zelensky's initiative last year to provide the U.S. with concrete incentives for supporting Ukraine. By offering access to these valuable minerals, Ukraine hopes to strengthen its alliance with Washington and secure American backing if tensions with Russia escalate again.
In a statement, Ukrainian Prime Minister Denys Shmyhal confirmed that a final version of the agreement has been prepared but remains undisclosed to the public. He emphasized Ukraine's efforts in securing guarantees for lasting peace, stating that the deal must be tied to a U.S. security guarantee to be effective.
"I wanted to have a sentence on security guarantees for Ukraine, and it's important that it's there." – Volodymyr Zelensky
"I want to find a NATO path or something similar." – Volodymyr Zelensky
"If we don't get security guarantees, we won't have a ceasefire, nothing will work, nothing." – Volodymyr Zelensky
These security assurances are crucial as they would prevent any potential Russian reinvasion following the signing of the minerals deal. Yuri Sak, an advisor to the Ukrainian government, expressed skepticism about signing the deal without these guarantees.
"There's no point in signing any deal on critical minerals if Russians can reinvade one month after signing the deal." – Yuri Sak
Donald Trump has acknowledged that an agreement could benefit American taxpayers by offsetting some of the aid provided to Ukraine during the war.
"get that money back" through a deal – Donald Trump
He also mentioned that any peacekeeping measures in Ukraine should be acceptable to all parties involved.
"some form of peacekeeping" in Ukraine following any peace deal, in a form that would need to be "acceptable to everyone" – Donald Trump
The finalized deal represents a mutually beneficial arrangement. According to a source within Ukraine's government, the terms are now more favorable for Ukraine than initially proposed.
"The provisions of the deal are much better for Ukraine now." – A source in Ukraine's government
Once signed, Kyiv and Washington will manage the fund on equal terms.
"Kyiv and Washington will be managing the fund on equal terms." – Oleksiy Shmyhal