Kyiv and Washington are on the brink of finalizing a significant agreement granting the United States access to Ukraine's abundant mineral resources, a Ukrainian minister reveals. This potential deal is of paramount importance due to Ukraine's substantial deposits of rare earth metals, including graphite and lithium. With geopolitical tensions escalating, the United States seeks to diversify its mineral supply sources, reducing its reliance on China, which currently dominates 75% of the world's rare earth deposits.
Ukraine's Geological Survey highlights the country's prominent position as one of the top five global suppliers of graphite, boasting approximately 19 million tonnes of proven reserves. Additionally, Ukraine holds a third of Europe's lithium deposits, a crucial element in battery production. Beyond these, Ukraine is rich in titanium, a metal integral to industries such as aerospace and power generation. However, the ongoing conflict with Russia has had severe repercussions. Russian forces have occupied 63% of Ukrainian coal mines and seized half of its manganese, caesium, tantalum, and rare earth deposits, impacting Ukraine's ability to leverage these resources for economic growth.
The United States' interest in securing a deal is driven by its desire to lessen dependence on Chinese minerals. Iryna Suprun, CEO of the Geological Investment Group, notes that the development of Ukraine's mineral resources presents challenges due to the high costs and complexity involved. Despite these hurdles, the potential rewards are substantial. Ukraine's Minister of Economy, Yulia Svyrydenko, estimates that resources valued at $350 billion remain within territories currently occupied by Russia. Seizing these resources not only denies Ukraine vital revenue but also allows Russia to expand its resource base and influence global supply chains.
The initial proposal from the United States suggested a 50/50 revenue split for access to these resources. However, this was later revised to propose full control over the mineral deposits. Amidst these negotiations, Dr. Robert Muggah, principal of SecDev, emphasizes the deal’s broader implications:
"a growing strategic role in geopolitics and geoeconomics" – Dr Robert Muggah
Ukrainian officials argue that the agreement offers multiple benefits beyond financial gains. Former UK Prime Minister Boris Johnson highlights the political advantages:
"what the Ukrainians get from this is a United States commitment under Donald Trump to a free, sovereign and secure Ukraine" – Boris Johnson
Furthermore, Iryna Suprun underscores the technological and economic opportunities that could arise from the collaboration:
"we will get technologies that our mining industry lacks so much, we will get capital. That means more jobs, tax payments. We'll receive revenue from the development of mineral deposits" – Iryna Suprun