The US-Ukraine mineral deal, originally meant to be signed during Ukranian President Volodymyr Zelenskyy’s late February trip to Washington, may get inked in the coming days, President Donald Trump said recently. This comes as the US attempts to broker a temporary ceasefire between Russia and Ukraine.
On Thursday (March 20), Trump, speaking about separate discussions he had with Zelenskyy and Russian President Vladimir Putin earlier this week, said the mineral deal between Washington and Kyiv will be finalised “shortly.”
“We’re doing very well with regard to Ukraine and Russia. And one of the things we are doing is signing a deal very shortly with respect to rare earths with Ukraine,” he said at a White House event.
What is the US-Ukraine mineral deal?
The signing of the pending mineral deal will clear the way for the US and Ukraine to jointly develop the eastern European country’s critical mineral resources. Trump said the agreement would be Kyiv’s way to pay back Washington for its support. Ukraine has as much as 5% of global mineral deposits, including uranium, lithium, iron, and titanium.
Though the country also possesses deposits of rare earth elements used in the manufacturing of a wide range of products across key industries, it hasn’t been able to commercialise their extraction. Rare earths include 17 specific elements that are used in aircraft engines, electric vehicles, consumer electronics, and radar systems, among others.
The draft deal envisages Kyiv contributing 50% of revenues earned from the development of mineral resources, including natural gas and oil, to a fund jointly managed by Ukraine and the US. The fund will be utilised for “safety, security and prosperity” of Ukraine
A March 5 BBC report said the US would own the maximum amount of the fund allowed under US law.
Zelenskky has repeatedly asked for the inclusion of a firm security guarantee from the US in the deal. There are no reports of any such guarantee. The US supports “Ukraine’s efforts to obtain security guarantees to build lasting peace,” the deal says, according to BBC.
Zelenskyy’s visit to the White House last month was cut short after the infamous public spat he and his US counterpart, who was backed by his vice president, JD Vance, had over the ongoing war in Ukraine.
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