Ukraine and USA Seal Mineral Deal
Although the details of the deal remain sketchy, certain key contours of the agreement have come to light. Basically, Ukraine agrees to give preferential access to its #CriticalMinerals to the USA in exchange for military support.
However, the deal does not go as far as requiring that the US provide ‘security guarantees’ as initially requested by Zelensky. Preferential access does not mean exclusive access as well. However, all exports of minerals to the US will be tax-free by Ukraine.
Ukraine First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko flew to Washington DC for the conclude the accord. The US was represented by US Treasury Secretary Scott Bessent. The signature ceremony took place on 30 April 2025 after weeks of tense talks.
Another key clause is that Trump finally conceded that Kyiv will not need to reimburse the United States for the aid provided so far. Initially, Washington claimed USD 500 billion as payback but Zelensky rejected it outright while accusing Trump of acting as ‘a ‘dictator forcing him to sell his country.’
Instead, future US assistance will count as ‘investment’ into a joint reconstruction fund that will be earmarked for developing Ukraine’s mineral resources. The mineral deal includes not only include rare earths, copper, gold but also oil and natural gas.
The deal also leaves some flexibility in case Ukraine eventually joins the European Union (EU). In that event, the deal is expected to be renegotiated in good faith.
The deal is for new projects which means that existing mines are excluded. The US will have to invest in new mines to generate revenue.
According to the Critical Minerals Intelligence Center at the UK Geological Survey, the production of certain #CriticalMinerals, such as lithium, graphite and titanium, could be realized quickly as they are located in regions that are quite secure. In the case of Rare Earths, there might be a longer learning curve as the refining process is quite complex.
The breakthrough comes after an impromptu meeting at Saint Peter’s Basilica between Trump and Zelensky at the Vatican on the sidelines of the funeral ceremony of Pope Francis. Previously, the US and Ukraine looked be at loggerheads and the deal appeared dead on arrival.
In terms of a peace deal, the US and Ukraine proposed a 30-day ceasefire. But, Russia only agree to a 3-day truce in the context of its Victory Day.