The United States and Ukraine are working on a deal about natural resources. This agreement could let the U.S. tap into Ukraine’s valuable minerals. In return, Washington would offer investments and, ideally, some security backing for Ukraine.
U.S. President Donald Trump announced that the deal has been agreed upon and expressed his satisfaction. Meanwhile, Ukraine’s President Volodymyr Zelensky is more cautious, suggesting that its success hinges on Trump’s actions.
Here’s what we know about the agreement:
What’s in the deal? The planned agreement aims to create a “reconstruction investment fund” run together by the U.S. and Ukraine. Ukraine’s Prime Minister Denys Shmyhal clarified that this deal will not include current resources like deposits and licenses. The deal is broader than just minerals; it also covers oil, gas, and related infrastructure such as ports and terminals.
What does Trump want? Trump mentioned he is focused on “getting the money back” regarding financial aid given to Ukraine during the previous administration.
What does Ukraine want? Ukraine’s rich mineral resources have attracted interest from its allies. Zelensky wants a strong emphasis on security guarantees in this deal.
Why is Trump interested? Key materials like graphite, lithium, and uranium are vital for the economy and national defense. They are used to create electronics, clean energy technologies, and some defense systems. The U.S. relies heavily on imports from countries like China for these critical minerals, which raises concerns amid current trade tensions.
How rich are Ukraine’s resources? While Ukraine’s reserves of rare earth minerals are not globally significant, it possesses large deposits of critical minerals like graphite and uranium. Unfortunately, the sector is underdeveloped, and foreign investment will likely be necessary for extraction.
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