Despite security concerns, Ukraine and the US reach a mineral deal

The US and Ukraine have reached an agreement on minerals, with Washington renouncing its $500 billion demand while refusing to provide Kyiv with clear security guarantees.

According to a senior Ukrainian official who spoke to the BBC, Kyiv has accepted the conditions of a big minerals agreement with Washington. Speaking on the condition of anonymity, the official called the accord a “positive outcome” with significant changes, but he withheld specifics. 

According to reports, Ukraine sought for substantial security guarantees, which the US has not given, despite reversing its initial demand for a $500 billion share of prospective mineral income. The pact follows heated discussions between US President Donald Trump and Ukrainian President Volodymyr Zelensky, who is scheduled to meet with Zelensky in Washington this week to finalize the agreement. 

Trump claimed that Ukraine was receiving “the right to fight on” in return for cooperation on mineral access, but he did not specifically confirm the agreement. “Without the United States and its money and military equipment, this war would have been over in a very short period of time,” he said, reiterating the critical role that US assistance plays in Ukraine’s war effort. 

When asked if US military aid would continue, Trump said it would “last until we have a deal with Russia” and that any peace settlement would probably call for “some form of peacekeeping,” which would need to be widely accepted. 

The minerals agreement deviates from unconditional aid and represents a change in US foreign policy. Trump emphasized his administration’s transactional approach to international relationships by declaring, “The American taxpayer is going to get their money back plus.” 

After a time of tense relations between the US and Ukraine, the deal was reached. Following Kyiv’s rejection of Washington’s initial demands for mineral resources, Trump last week called Zelensky a “dictator” and seemed to blame Ukraine for the fighting. In response, Zelensky said, “I can’t sell our state,” accusing Trump of being swayed by Russian misinformation. 

The negotiations’ leader, Olha Stefanishyna, Ukraine’s deputy prime minister, told the Financial Times that the minerals agreement was “just one piece of the picture” * and that it was a component of larger talks with Washington. The agreement’s specifics are still up for debate. 

Vladimir Putin, the president of Russia, has hinted that Moscow would grant the US access to rare minerals, including those found in Russian-occupied Ukraine. Kyiv and its European allies are worried about being left out of US-Russia negotiations because of this, particularly in light of recent diplomatic contacts between the two countries in Saudi Arabia. 

In addition to coal, oil, gas, and uranium deposits, Ukraine has enormous amounts of vital minerals including lithium and titanium. Industries like technology, energy, and defense depend on these resources. 

Zelensky put up a “victory plan” last year that would grant international corporations access to Ukraine’s natural resources after the conflict is over. With indications indicating an investment fund is also in the works, the most recent deal with the US sets a precedent for foreign investment in Ukraine’s post-war reconstruction. 

According to the Ukrainian news website Ukrainska Pravda, US Secretary of State Marco Rubio and Ukrainian Foreign Minister Andrii Sybiha are anticipated to sign the agreement. 

Ukraine is still cautious about changing international relationships even after reaching an economic agreement. European officials are concerned that Trump’s transactional strategy may result in talks with Russia that do not include Ukraine, so influencing the security environment of the continent without Kyiv’s participation. 

Securing access to Western financial and military assistance is essential for Ukraine, but it’s also critical to make sure that geopolitical agreements don’t compromise its security and sovereignty.