**The agreement simplifies earlier demands, focusing on Ukraine’s crucial mineral resources while omitting stringent financial obligations.**
**Ukraine Strikes Mineral Deal with U.S. Amid Escalating Tensions**
**Ukraine Strikes Mineral Deal with U.S. Amid Escalating Tensions**
**In a turning point, Ukraine consolidates its mineral resources into a deal with the U.S. under Trump's administration.**
Ukraine has reached a pivotal agreement to channel revenue from its mineral resources to the United States, informed sources confirmed on Tuesday amidst ongoing pressure from President Trump. Here’s what we have learned about this significant development.
**Terms of the Agreement**
While specific financial details are still pending, it has been revealed that the latest draft agreement does not impose the hefty requirement of a $500 billion contribution to a U.S.-owned fund, nor does it demand Ukraine to repay the United States twice for any future aid. Recent discussions have made Ukrainian officials more amenable to the deal after the removal of some burdensome clauses. According to the draft, Ukraine will allocate half of its earnings from future exploitation of natural resources—including critical minerals and oil and gas—to the fund, which would maintain certain limits on U.S. financial ownership in accordance with domestic legislation.
**Security Guarantees**
Ukrainian President Volodymyr Zelensky has consistently sought security assurances in exchange for this mineral accord, especially with the ongoing conflict with Russia entering its fourth year. However, initial drafts reviewed by The New York Times revealed an absence of any security commitments from the U.S. included in the agreement.
**Approval Process**
An amended version of the agreement has been dispatched to Ukraine as of Tuesday. Treasury Secretary Scott Bessent, alongside his Ukrainian counterpart, is anticipated to endorse the agreement before Zelensky heads to Washington for a formal signing session with President Trump.
**What’s at Stake**
Ukraine is home to over 100 major reserves of critical minerals according to a report from the Kyiv School of Economics, along with modest reserves of oil and natural gas. Key resources such as titanium, essential in various industries from aerospace to cosmetics, are abundant in central Ukraine, which contributes about 6% of global production. Moreover, Ukraine holds a third of Europe's lithium reserves, vital for electric vehicle batteries, although some sites are located in conflict zones. Additionally, with the largest uranium reserves in Europe, Ukraine is a significant player in the nuclear energy industry.
As the details of this agreement unfold, it remains unclear how the extraction of Ukraine's untapped rare earth resources will be maneuvered, particularly given the complexities of the ongoing war.
Reporting by Constant Méheut, Andrew E. Kramer, Maria Varenikova, and Alan Rappeport.
**Terms of the Agreement**
While specific financial details are still pending, it has been revealed that the latest draft agreement does not impose the hefty requirement of a $500 billion contribution to a U.S.-owned fund, nor does it demand Ukraine to repay the United States twice for any future aid. Recent discussions have made Ukrainian officials more amenable to the deal after the removal of some burdensome clauses. According to the draft, Ukraine will allocate half of its earnings from future exploitation of natural resources—including critical minerals and oil and gas—to the fund, which would maintain certain limits on U.S. financial ownership in accordance with domestic legislation.
**Security Guarantees**
Ukrainian President Volodymyr Zelensky has consistently sought security assurances in exchange for this mineral accord, especially with the ongoing conflict with Russia entering its fourth year. However, initial drafts reviewed by The New York Times revealed an absence of any security commitments from the U.S. included in the agreement.
**Approval Process**
An amended version of the agreement has been dispatched to Ukraine as of Tuesday. Treasury Secretary Scott Bessent, alongside his Ukrainian counterpart, is anticipated to endorse the agreement before Zelensky heads to Washington for a formal signing session with President Trump.
**What’s at Stake**
Ukraine is home to over 100 major reserves of critical minerals according to a report from the Kyiv School of Economics, along with modest reserves of oil and natural gas. Key resources such as titanium, essential in various industries from aerospace to cosmetics, are abundant in central Ukraine, which contributes about 6% of global production. Moreover, Ukraine holds a third of Europe's lithium reserves, vital for electric vehicle batteries, although some sites are located in conflict zones. Additionally, with the largest uranium reserves in Europe, Ukraine is a significant player in the nuclear energy industry.
As the details of this agreement unfold, it remains unclear how the extraction of Ukraine's untapped rare earth resources will be maneuvered, particularly given the complexities of the ongoing war.
Reporting by Constant Méheut, Andrew E. Kramer, Maria Varenikova, and Alan Rappeport.
