The White House and Zelensky reach an agreement on the exploitation of rare minerals in Ukraine
The new agreement eliminates the U.S. claim to $500 billion in profits, an amount Kiev has deemed excessive.
Donald Trump and Volodimir Zelenski in 2024.
Kiev and Washington are working through their differences and appear ready to approve a revised agreement for the exploitation of rare minerals in Ukraine. This deal, which promises significant benefits for the United States, was one of Donald Trump's conditions for pursuing peace. The White House views it as compensation for the military and economic aid provided to Ukraine throughout the war.
However, the initial proposal presented by Donald Trump's team to Volodymyr Zelensky's cabinet was rejected by the Ukrainians. Zelensky viewed the agreement's economic provisions as excessive, arguing that they would burden "ten generations of Ukrainians."
The Ukrainian government is set to formally approve the deal on Wednesday, according to the *Financial Times*. A Ukrainian official familiar with the matter told the outlet that Zelensky plans to travel to Washington on Friday to meet with Donald Trump and finalize the agreement.
$500 billion for the U.S.
Ukrainian sources stated that the initial economic return proposed for Washington amounted to "$500 billion," which is four times the assistance provided by the U.S. so far—approximately $115 billion, according to data from the Kiel Institute for the World Economy (IfW Kiel).
According to a Ukrainian source familiar with the compromise, who spoke to AFP on Tuesday night, the U.S. financial claim is no longer included in the document. Instead, the agreement stipulates that the United States and Ukraine will jointly exploit Ukraine's mineral resources, with the resulting revenues being allocated to a shared fund between the two countries.
Rare minerals in Ukraine
The country is a key producer of three critical minerals: manganese (the world's eighth-largest producer, according to World Mining Data), titanium (11th-largest), and graphite (14th-largest), all essential for electric batteries.
Notably, Ukraine holds an estimated 20% of the world's graphite resources, according to the French Geological and Mining Research Office (BRGM).
The same source claimed that Ukraine is also "one of the main countries in Europe in terms of potential" for exploitation of lithium, which is a crucial component in electric vehicle batteries.
According to the senior Ukrainian official, the Americans agreed to take out "all the clauses that did not suit us, in particular the one concerning the $500 billion."
"The minerals deal is only part of the picture. We have heard many times from the U.S. administration that it is part of a bigger picture," Olha Stefanishyna, Ukraine's deputy prime minister and justice minister, who has led the negotiations, told the Financial Times on Tuesday.
Lack of security guarantees
Sources with access to the details of the agreement indicate a lack of guarantees regarding Ukraine's security. The Zelensky government has repeatedly emphasized the need for specific safeguards to prevent Russia from launching another attack on Ukraine.
While Ukraine's NATO membership was initially considered, this prospect now seems less likely since Donald Trump took office. As for joining the European Union, Russia has publicly stated that it does not view this possibility as a threat.
Another demand from Ukraine is the deployment of peacekeepers once a ceasefire has been established with Russia.
The United States has indicated that it will not send its own peacekeepers but is supportive of deploying soldiers from European countries.
The text of the minerals agreement would include a reference to Ukraine's security; however, it does not provide any concrete guarantees. This issue is currently under negotiation, according to a senior Ukrainian official who spoke to AFP.
"It is a general clause, indicating that the United States will invest in a sovereign, stable and prosperous Ukraine, and work for a lasting peace," that senior official said.
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