US, Ukraine to Strike Deal for Access to Rare Earth Minerals
The United States and Ukraine have reached an agreement granting the US access to Ukraine’s substantial rare earth mineral and natural resource deposits, US President Donald Trump announced on Tuesday, as per Al Jazeera.
The announcement comes amidst delicate relations between Kyiv and the Trump administration and a shift in US foreign policy towards the region.
Speaking at the White House, President Trump confirmed reports of the agreement with Ukrainian leader Volodymyr Zelensky, stating that the latter intends to travel to the US on Friday to formally sign the deal.
“I hear that he is coming on Friday. Certainly, it’s OK with me if he would like to. And he would like to sign it together with me, and I understand that’s a big deal, a very big deal,” Trump told reporters.
President Trump touted the potential value of the deal, estimating it at $1 trillion, and assured American taxpayers that the agreement would ensure a return on US investment.
“We’re spending hundreds of billions of dollars on Russia and Ukraine fighting a war that should have never, ever happened.”
When asked about what Ukraine would receive in return, President Trump reminded of the $350 billion in aid that has already been provided to Kyiv’s war effort, along with “military equipment and the right to fight on.”
The breakthrough follows reports that Zelensky had previously rejected a draft agreement that would have relinquished rights to an estimated $500 billion worth of natural resources.
The deal arrives at a pivotal moment as Ukraine seeks to mend relations with Washington. President Trump’s outreach to Russian President Vladimir Putin has fueled anxieties in Kyiv and European capitals as the Trump administration moves forward with the “America First” policy.
Just last week, Trump labeled Zelensky a “dictator” for suspending elections and accused him of benefiting from the “gravy train” of US aid.
While full details of the agreement remain undisclosed, reports suggest that Ukraine would contribute 50 percent of the proceeds from the future monetization of its resources to a jointly owned fund. This fund would then be used to invest in projects within Ukraine.
The Financial Times, which first reported on the deal, indicated that the size of Washington’s stake in the fund is still to be determined.
Ukraine is believed to hold some 5 percent of the world’s reserves of rare earth elements, according to UN data. These minerals, including lanthanum, cerium, and praseodymium, are critical components in the manufacturing of electronics, batteries, magnets, and other essential technologies.
