Key points
- Ukraine possesses substantial deposits of rare-earth elements
- Ukraine to contribute 50pc of revenues from government-owned assets
- Volodymyr Zelensky says Ukraine is ready to sign a deal with the US
ISLAMABAD: In recent months, the United States and Ukraine have been working on negotiating an important minerals agreement to bolster economic ties and support Ukraine’s reconstruction efforts.
This deal focuses on developing Ukraine’s rich reserves of rare-earth elements and other critical minerals. However, the negotiations have encountered challenges, according to BBC.
Ukraine possesses substantial deposits of rare-earth elements, including lithium, graphite, manganese, and titanium ore, essential for various industries such as aerospace, defence, and electronics.
Recognising the strategic importance of these resources, both Kyiv and Washington have previously sought to collaborate on their development.
The minerals deal
Ukrainian President Volodymyr Zelensky proposed US participation in extracting these minerals in exchange for continued support against Russian aggression. This proposal laid the groundwork for the current negotiations.
The agreement outlines the establishment of a jointly-owned Reconstruction Investment Fund. Ukraine would contribute 50 per cent of future revenues from government-owned natural resource assets, while the United States would commit to long-term financial support for Ukraine’s economic stability, according to Reuters.
This framework aims to ensure mutual benefits and sustained economic growth for both nations.
Despite initial optimism, the negotiations have faced hurdles. A scheduled signing ceremony on February 28, 2025, at the White House was abruptly cancelled following a heated exchange between Presidents Trump and Zelensky, according to BBC.
No security guarantees
The disagreement centred on the extent of US claims over Ukraine’s mineral revenues and the absence of explicit security guarantees for Ukraine. President Zelensky expressed concerns about selling Ukraine away without concrete assurances of support against Russian aggression.
The stalled negotiations have prompted reactions from global stakeholders. European leaders convened the 2025 London Summit on Ukraine to discuss alternative support mechanisms and potential security guarantees.
The summit underscored the importance of Ukraine’s sovereignty and the need for equitable agreements that do not compromise its national interests.
The future of the US-Ukraine minerals agreement remains uncertain.
Ukraine is ready
However, Volodymyr Zelensky says Ukraine is ready to sign a deal with the US over its mineral deposits, days after he was told to leave the White House following a fiery exchange with Donald Trump and US Vice-President JD Vance, according to BBC.
Both nations are willing to continue negotiations, emphasising the importance of a fair and mutually beneficial partnership.
The international community continues to monitor the situation closely, recognising the deal’s potential impact on global mineral markets and geopolitical dynamics.
