Ukraine holds vast reserves of critical minerals, making it a key player in the global supply chain. With deposits of 22 out of 34 minerals classified as critical by the EU, the country’s resources have drawn interest from the United States. On Friday, Ukrainian President Volodymyr Zelenskyy is set to sign a deal with US President Donald Trump, granting the US access to these valuable mineral reserves. The agreement aims to help the US recoup aid sent to Ukraine during its ongoing war with Russia, which began in February 2022.
Key Details of the US-Ukraine Agreement
Under the proposed deal, both nations will work on a strategy to leverage revenues from Ukraine’s critical minerals, oil, and gas sectors. The agreement also includes the creation of a Reconstruction Investment Fund, designed to channel profits from these resources into Ukraine’s rebuilding efforts.
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Main Provisions of the Deal:
- Revenue Sharing: Ukraine will contribute 50% of earnings from state-owned resources to the fund. The source of the remaining 50% is yet to be clarified.
- Reconstruction Efforts: Funds will be used for infrastructure projects, development initiatives, and state-owned enterprises.
- US Role: Washington will support Ukraine’s economic stability but will not provide direct security guarantees.
While Ukraine has agreed to the framework, negotiations on fund allocation and US control over revenues are still ongoing.
Strategic Importance of Ukraine’s Critical Minerals
Ukraine’s vast deposits include lithium, titanium, and rare earth elements—key materials for the tech, defense, and energy industries. These resources are essential for producing batteries, semiconductors, and military equipment. However, many deposits are located in areas occupied by Russia, adding a layer of complexity to extraction and export.
The EU has long viewed Ukraine as a potential alternative to China, which dominates the global rare earth supply. By securing access, the US aims to strengthen its own supply chains while supporting Ukraine’s economy.
US Aid and the Push for Compensation
President Trump has previously suggested that the US should claim $500 billion in future revenues from Ukraine’s resources as repayment for military and financial aid. However, Zelenskyy has resisted, arguing that the actual aid total is significantly lower.
According to the Kiel Institute for the World Economy, the US has provided €114 billion ($118 billion) in aid to Ukraine since 2022. This includes military assistance, financial support, and humanitarian aid. The new agreement reflects Trump’s broader strategy to offset US spending through resource-based partnerships.
What’s Next?
The deal marks a significant step in US-Ukraine relations, shaping both economic and geopolitical dynamics. As negotiations move forward, key questions remain about fund management, US influence, and Ukraine’s long-term economic sovereignty.
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