A new agreement between Ukraine and the U.S. reveals a shift in mineral revenue sharing, easing previous financial burdens while discussions on security guarantees remain unresolved.
Ukraine Enters New Minerals Pact with U.S. Amid Ongoing Conflict
Ukraine Enters New Minerals Pact with U.S. Amid Ongoing Conflict
In a significant move, Ukraine agrees to share mineral revenues with the U.S. following pressure from President Trump, dropping previous demands for massive financial contributions.
In a climate of escalating tensions due to the ongoing war with Russia, Ukraine has reportedly entered into a deal with the United States regarding the revenue from its mineral resources. An American official confirmed on Tuesday that the agreement followed immense pressure from President Trump, who had previously sought a $500 billion contribution from Ukraine, a demand that has since been omitted from the latest draft.
While specific financial details of the secondary agreement are pending, it has been indicated that Ukraine will allocate half of the revenues from future monetization of natural resources—including vital minerals, oil, and gas—into a fund that the U.S. would manage under prevailing legal frameworks. By dropping the more burdensome clauses, Ukrainian officials have seen an improved stance on the deal in recent days.
Throughout recent negotiations, President Zelensky emphasized the necessity of security guarantees to protect Ukraine amidst ongoing conflict, although the draft reportedly does not include such commitments. The approval of the pact would involve the signing by Treasury Secretary Scott Bessent and his Ukrainian counterpart, followed by a further signing in Washington between President Zelensky and President Trump.
The stakes of this agreement are significantly high, as Ukraine contains over 100 major deposits of essential minerals, as highlighted by research from the Kyiv School of Economics. Notably, the agreement encompasses minerals like titanium, lithium, and uranium, critical for numerous industries, including energy and technology. With Tesla's Elon Musk previously suggested for investment in Ukraine's lithium mines pre-war, the potential for economic revitalization remains significant. Nonetheless, the extent of resource extraction costs, particularly in conflict zones, remains to be clarified.
While specific financial details of the secondary agreement are pending, it has been indicated that Ukraine will allocate half of the revenues from future monetization of natural resources—including vital minerals, oil, and gas—into a fund that the U.S. would manage under prevailing legal frameworks. By dropping the more burdensome clauses, Ukrainian officials have seen an improved stance on the deal in recent days.
Throughout recent negotiations, President Zelensky emphasized the necessity of security guarantees to protect Ukraine amidst ongoing conflict, although the draft reportedly does not include such commitments. The approval of the pact would involve the signing by Treasury Secretary Scott Bessent and his Ukrainian counterpart, followed by a further signing in Washington between President Zelensky and President Trump.
The stakes of this agreement are significantly high, as Ukraine contains over 100 major deposits of essential minerals, as highlighted by research from the Kyiv School of Economics. Notably, the agreement encompasses minerals like titanium, lithium, and uranium, critical for numerous industries, including energy and technology. With Tesla's Elon Musk previously suggested for investment in Ukraine's lithium mines pre-war, the potential for economic revitalization remains significant. Nonetheless, the extent of resource extraction costs, particularly in conflict zones, remains to be clarified.
