Breakthrough Agreement: US and Ukraine Finalize Critical Minerals Deal After Intense Negotiations | CNN

The United States has just signed a new economic partnership with Ukraine. This agreement allows the U.S. to tap into Ukraine’s mineral resources. In return, the U.S. will help set up an investment fund in Ukraine.

This deal has been in the works since Donald Trump returned to the White House. Unlike earlier drafts, the latest version seems to favor Ukraine more. Now, future military aid from the U.S. will count as part of the investment in this fund, rather than expecting Ukraine to repay previous support.

The negotiation process was intense, and there were times when it almost fell apart. During a recent call with NewsNation, Trump emphasized the need for a solid deal to protect U.S. interests, stating, “We made a deal where we get much more in theory than the $350 billion.”

Interestingly, Trump has claimed that the U.S. has given Ukraine $350 billion since the Russian invasion in February 2022. However, the real number is closer to $120 billion, according to the Kiel Institute for the World Economy.

Ukrainian President Volodymyr Zelensky expressed optimism about the agreement, noting that it allows Ukraine full ownership and control of its resources. Economy Minister Yulia Svyrydenko, who signed the deal in Washington, stressed that all resources on Ukrainian soil remain under Kyiv’s authority.

As part of the agreement, military aid provided after the signing will factor into the investment fund. Ukrainian Prime Minister Denys Shmyhal described the pact as a balanced agreement that benefits both countries. The U.S. Treasury Department signaled strong support for Ukraine, calling it a historic partnership that enhances their long-term commitment to Ukraine’s sovereignty.

Amid ongoing global supply chain issues, these resources hold significant value. Ukraine possesses 22 of the 50 critical materials classified by the U.S. Geological Survey, including rare earth minerals essential for tech and clean energy production. Currently, China’s dominance in this sector makes alternative sources like Ukraine increasingly crucial for Western countries.

A recent report noted that the global production of essential materials is shifting as countries look for reliable suppliers outside of China. By investing in Ukraine, the U.S. aims to lessen its reliance on any one country for these key resources.

This partnership also aligns with a similar agreement Ukraine has with the European Union, established in 2021. The trend reflects a growing commitment to ensuring that Ukrainian resources are integrated into the global market, thereby boosting both the Ukrainian economy and Western supply chains.

For deeper insights into international partnerships and economic strategies, you can check reports from the U.S. Geological Survey here.

Source link