In February, former President Donald Trump called for access to Ukraine’s rare earth resources in exchange for ongoing American military and financial support. Trump argued that the demand was a form of reimbursement for the billions Washington has provided to Ukraine since the start of the war with Russia. Ukraine has agreed to negotiate the deal, hoping that securing the rare earth resources will guarantee continued US backing in their efforts against Russian forces.
The Strategic Partnership Deal
Ukraine’s Prime Minister, Denys Shmyhal, referred to the proposed agreement as a “strategic partnership,” emphasizing its fairness and balance. According to Shmyhal, the two governments would invest jointly in Ukraine’s recovery and mineral development through a dedicated 10-year fund. This fund would be supported by both cash contributions and new US military aid, with the latter counting towards America’s share.
While Ukraine initially rejected early drafts of the agreement for favoring Washington, the latest version addresses key concerns, particularly those related to the country’s European Union (EU) membership aspirations. One of Ukraine’s top priorities was ensuring that the deal would align with its EU accession path, which has now been incorporated into the agreement.
Negotiations and Key Raw Materials
On Wednesday, Ukraine’s Economy Minister, Yulia Svyrydenko, traveled to Washington to help finalize the deal. According to two Ukrainian officials, the final draft is expected to be approved by the Cabinet soon. Once both sides agree on the terms, Ukraine plans to present the deal to its parliament for ratification.
The US has expressed a strong interest in accessing over 20 critical raw materials, including oil, gas, uranium, and titanium. These resources are essential for various industries, including aerospace, energy, and medicine. Ukraine is home to significant reserves of these materials, particularly titanium for aerospace production, uranium for energy and medical uses, and lithium, which is increasingly in demand for electric vehicle (EV) batteries.
Challenges in Finalizing the Agreement
Despite the ongoing discussions, the Trump administration has not confirmed whether the deal will be finalized during this week’s meetings. Negotiations have been slow, and tensions arose during a February meeting between President Trump and Ukraine’s President Volodymyr Zelenskyy. At the time, the talks stalled, with both sides unable to reach a resolution.
Washington has continued to push for progress, but Ukraine has remained firm on its demand for fair terms and long-term guarantees. Ukrainian officials are particularly concerned that any deal should not disadvantage their country in the long run, especially given the complex geopolitical situation.
Diplomatic Developments and Russia’s Role
Meanwhile, Russia has signaled a willingness to engage in direct talks with Ukraine without preconditions. Kremlin spokesman Dmitry Peskov emphasized that Moscow is open to discussing a ceasefire but seeks clarity on key issues before proceeding. He cautioned that the complexity of the conflict requires patience and warned that rushing into a resolution could undermine meaningful diplomatic efforts.
Peskov also expressed concerns that imposing forced outcomes could derail any potential peace agreement. The Russian government continues to make territorial gains in Ukraine, with nearly 20% of the country under Russian occupation since the invasion began on February 24, 2022.
Frustrations from Both Sides
Trump has expressed growing frustration with the slow pace of negotiations, citing Ukraine’s hesitancy in finalizing the terms of the rare earth resource deal. Meanwhile, Western European leaders have accused Russian President Vladimir Putin of stalling peace talks while attempting to expand Russian territory in Ukraine.
Despite ongoing efforts, peace talks between Russia and Ukraine remain uncertain. While the US and Ukraine focus on securing the mineral deal, the broader geopolitical landscape continues to evolve, with global implications for both countries.
