A senior official in the Ukrainian capital, Kyiv, has confirmed that Ukraine has agreed to a mineral acquisition deal with the United States. Without providing further details about the agreement, the Ukrainian official stated, "We have agreed to it after some good amendments, and Ukraine considers this a positive development." Reports suggest that the U.S. has withdrawn its initial demand, which stated that it would receive a $500 billion share from the profits generated by minerals extracted from Ukraine. Ukraine had also requested security guarantees from the U.S. in exchange for this deal, but Washington has not yet provided a definitive response. U.S. President Donald Trump hoped that Ukrainian President Volodymyr Zelensky would sign the agreement this week. However, according to the Ukrainian news website Ukrainska Pravda, the Ukrainian Foreign Minister and the U.S. Secretary of State will sign the contract. On Tuesday, without confirming whether the deal would be finalized, President Trump stated that Ukraine would gain the "right to continue fighting" in exchange for this agreement. He told journalists that "Ukrainians are very brave," but without American money and military equipment, this war would have ended in a very short time. "We want our money back. We are helping them (Ukraine) deal with a major problem, and American taxpayers will get their money back," the U.S. President added. President Trump further stated that after an agreement between Russia and Ukraine, steps would be needed to establish peace, but these steps would have to be "acceptable to everyone." It is worth noting that just last week, Trump called Ukrainian President Zelensky a 'dictator' and seemingly accused Ukraine of starting the war with Russia. Previously, Zelensky had refused to sign the Ukraine-US mineral agreement, stating that the U.S. President was living in Russia’s "disinformation world." Yesterday, Ukraine's Deputy Prime Minister, Olha Stefanishyna, also posted on social media platform X that negotiations between the U.S. and Ukraine had been "very constructive," and that almost all the key details had been finalized. She further stated, "We are committed to signing this agreement soon." For the past several weeks, the U.S. administration has been pressuring Ukraine to sign the deal, leading to tensions between the two countries' presidents. Ukrainian President Volodymyr Zelensky first offered Donald Trump access to Ukraine’s mineral resources in September last year as part of his so-called "Victory Plan." At the time, Zelensky believed it was necessary to make an attractive offer to a strong presidential candidate (Trump) to secure continued U.S. support for Ukraine.
On the other hand, Russian President Vladimir Putin has also offered the United States access to Russia's rare minerals in Russian-occupied territories of Ukraine. In an interview with Russia's state TV channel yesterday, Putin stated that he is willing to grant American partners access to Russian rare earth minerals through joint ventures, including mineral reserves located in what he referred to as "new territories." It is important to note that by "new territories," Putin was referring to the Ukrainian regions that Russia has occupied during the past three years of war. Putin also mentioned that he has no concerns about the anticipated agreement between the United States and Ukraine on mineral acquisition. However, he asserted, "Without a doubt, we possess such resources in much larger quantities than Ukraine."
According to official Ukrainian estimates, a significant portion of the world’s rare minerals is located in Ukraine, including 19 million tons of graphite reserves. Ukraine's rare minerals play a crucial role in the global supply chain. Ukraine’s Geological Survey Agency states that the country is among the top five suppliers of these minerals globally. Graphite is a crucial component in the production of electric vehicle (EV) batteries. In addition, Ukraine also holds lithium reserves, essential for modern battery manufacturing. Ukraine’s lithium reserves are seen as a key asset for future energy needs. Before Russia’s invasion, Ukraine supplied 7% of the world’s titanium, a critical mineral used in aircraft manufacturing and power plant construction. Ukraine is also home to 17 other rare minerals, which are vital in producing weapons, wind turbines, and various electronic devices. Ukraine's mineral resources are considered strategically important for Western industries. However, some of Ukraine’s mineral deposits are under Russian control. According to Ukraine’s Minister of Economy, Yulia Svyrydenko, critical mineral resources worth $350 billion are located in Russian-occupied areas. The Russia-Russia-Ukraine mineral conflict has intensified due to these valuable reserves. In 2022, Canadian company SecDev estimated that Russia had seized control of 63% of Ukraine’s coal mines, along with over half of its manganese, cesium, and tantalum reserves. Russia's rare minerals strategy appears to be aimed at controlling these essential resources. Dr. Robert Muggah, principal analyst at SecDev, suggests that these critical minerals are one of the strategic and economic reasons behind Russia’s aggression against Ukraine. Ukraine's rare minerals war has become a significant factor in the ongoing geopolitical struggle. He explains that by seizing these natural resources, Russia has diminished Ukraine’s ability to generate revenue, strengthened its mineral reserves, and expanded its influence over the global supply chain.
Dr. Robert Muggah states that rare minerals are the "foundation of the 21st-century economy." According to him, renewable energy, military equipment, and industrial infrastructure all depend on these critical minerals. He further explains that rare earth elements play a crucial role in enhancing a country’s strategic, economic, and geopolitical influence. According to the Geological Investment Group, the U.S.-Ukraine mineral agreement is driven by America’s desire to reduce its dependence on China, which controls 75% of the world’s mineral reserves. U.S. interest in Ukraine’s minerals is a strategic move to secure a stable supply of critical minerals for its industries. In December last year, China imposed export restrictions on some rare minerals to the United States, further tightening global supply chains. Before this, China had already limited the global export of rare earth elements, signaling its dominance in the mineral supply market. For several weeks, the U.S. administration has been pressuring Ukraine to sign this strategic mineral agreement. On Monday, ahead of French President Emmanuel Macron’s visit, White House official Mike Waltz told News Nation that the mineral deal would boost economic profitability and create a long-term U.S.-Ukraine strategic partnership.
Before Ukrainian Deputy Prime Minister Olha Stefanishyna made a statement about the mineral agreement, tensions between the United States and Ukraine had been escalating. Last Wednesday, reports emerged that President Volodymyr Zelensky had rejected the U.S. demand for access to 50% of Ukraine’s mineral reserves. He firmly stated, "I cannot sell my country." On Sunday, after reviewing the second draft of the agreement, it appeared that reaching a consensus would be difficult. During a press conference, Zelensky told journalists that the U.S. wanted 100% control over Ukraine’s mineral deposits. At the beginning of this month, Former U.S. President Donald Trump claimed that the U.S. had provided Ukraine with $500 billion in military and economic aid and suggested that America should receive mineral rights in return. However, Zelensky disputed this figure, stating that the total aid received by Ukraine was closer to $100 billion. He emphasized that this assistance was not a loan, and Ukraine was not obligated to repay it. As part of the deal negotiations, Zelensky demanded security guarantees from the U.S. in exchange for mineral access. While some analysts have labeled the agreement as a "neo-colonial American project," Ukraine insists it is interested in joint efforts to explore and develop these resources. Irina Suprin, a geologist associated with Ukraine’s Geological Investment Group, stated that developing these mineral reserves is a challenging and costly process. According to Irina, "American investment in Ukraine’s mineral sector would be beneficial for our economy." She further explained, "Through this partnership, we will gain much-needed technology, generate profits, create jobs, and increase tax revenues."
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