The US and Ukraine are trying to block the natural resources agreement that will allow Washington to access the wealth of Kiev’s undeveloped minerals in exchange for investment.
US President Donald Trump said on Wednesday that he was “happy” about it, but Ukrainian President Voldimee Zelensky was more cautious and the agreement could be “a great success,” but it was dependent on Trump.
This is what we know and don’t know.
What are the deals available? The draft agreement calls for the establishment of a “reconstruction investment fund” jointly managed by the US and Ukraine. Ukrainian Prime Minister Dennis Schmichal stressed that the transaction excludes existing “deposits, facilities, licensing and royalties” related to Ukraine’s natural resources. The draft agreement goes beyond just minerals and rare earths. It spans other natural resources in Ukraine, including oil and gas, as well as infrastructure connected to sectors such as ports and LNG terminals.
What does Trump want in the deal? Trump said over the weekend that he was “trying to get the money back,” referring to the aid provided to Ukraine under the previous administration.
What does Ukraine want in the deal? The wealth of minerals in Ukraine has long been seen by its allies. And Kiev made them part of the appeal to support. Zelensky has made it clear that it wants security guarantees to be part of the transaction.
Why is Trump so enthusiastic about this deal? Materials such as graphite, lithium, uranium and 17 chemical elements known as rare earths are important for economic growth and national security. These are essential for the production of clean energy technologies such as electronics, wind turbines, energy networks, electric vehicles, and some weapons systems. The US relies heavily on imports of necessary minerals, many of which come from China, which has long dominated the market. Experts have long warned that relying on China for strategic material is dangerous, but the latest trade tensions between Washington and Beijing make it even more important for the US to look for alternative suppliers.
How much resources do Ukraine do? Ukraine does not have any globally important reserves of rare earth minerals, but it has some of the world’s largest deposits of graphite, lithium, titanium, beryllium and uranium, all of which are classified as important minerals by the United States. However, Ukraine has large reserves of these minerals, but little has been done to develop this sector. It is unlikely that Kiev will be able to extract these resources without foreign investment.
CNN’s Victoria Butenko, Nick Paton Walsh, Gal Tuisus, Christian Edwards, Svitrana Vlasova, Darya Tarasova Marchina, Lauren Kent, Betsy Klein and Michael Williams contributed to this report.
