Ukraine Secures Major Minerals Deal with US Amid Ongoing Conflict

Ukraine has finalized a deal with the US for access to its critical mineral resources, which aims to bolster US support and funding for the war-torn nation. Although details remain scarce, questions around security guarantees persist as both nations navigate the agreement's implications while contending with ongoing Russian aggression.

Kyiv has entered into a significant minerals deal with the United States, effectively allowing American access to Ukraine's valuable rare earth minerals. This agreement follows discussions initiated by Ukraine's President Zelensky last September with former presidential candidate Donald Trump. The Ukrainian government views the arrangement as a potential hedge against any resurgence of Russian aggression post-ceasefire.

According to Ukrainian Prime Minister Denys Shmyhal, who spoke with local media, terms of this preliminary agreement include the establishment of an investment fund aimed at financing Ukraine's reconstruction. Under this arrangement, both Kyiv and Washington will manage the fund on equal footing, with Ukraine contributing 50% of future earnings derived from state-owned mineral resources, oil, and gas.

Details about the ownership structure of the fund highlight that while the US would be entitled to the maximum share permitted under U.S. law, it may not control all of it. This topic became contentious during recent discussions, which saw President Zelensky previously refuse a staggering $500 billion request for mineral revenue; that demand has since been toned down, reflecting a more favorable position for Ukraine.

A critical question surrounding the deal remains the lack of explicit security guarantees from the US. Nevertheless, Prime Minister Shmyhal asserted ongoing support from the US for Ukraine's security initiatives in order to establish lasting peace. He emphasized that no deal would be finalized without President Zelensky and Trump reaching a consensus on necessary security assurances.

The minerals deal is framed as part of a broader strategy by Ukraine to solidify US backing. Trump claimed that this agreement would allow the US to recoup funds spent on support during the ongoing conflict, which has been estimated to be between $300 billion and $350 billion.

As the agreement awaits formal signing, anticipated for Wednesday, Shmyhal revealed that Zelensky is expected to sign it during a visit to Washington. Ukraine’s untapped resources include significant reserves of graphite and other critical minerals necessary for modern technologies, intensifying the importance of this partnership.

In response, Russian President Vladimir Putin has dismissed concerns regarding the deal, asserting that Russia possesses greater resources and suggesting joint mining initiatives in territories under Russian control, further complicating the geopolitical landscape. The dynamics of this agreement unfold during a crucial moment in the ongoing conflict and reflect the strategic maneuvering between Ukraine and its allies in countering Russian advances.