Topline
The United States is seeking $500 billion worth of natural resources from Ukraine in a contested deal in exchange for the military aid provided throughout Russia’s invasion of the country, which may include some of the country’s large titanium, lithium and graphite reserves.
The United States and Ukraine are reportedly nearing a deal over Ukraine’s minerals. (Photo by … [+]
Key Facts
Trump has demanded Ukraine supply $500 billion in rare minerals to the United States as part of a deal, which is still in negotiations, as repayment for the money it has sent Ukraine to finance its war efforts, which was just over $174 billion as of January, according to a Congressional Research Service report—far lower than the $350 billion Trump has falsely claimed the United States has supplied.
Ukraine’s Ministry of Environmental Protection and Natural Resources says it has Europe’s number-one graphite and lithium reserves, and it says its graphite reserves make up 6% of the world’s total.
Ukraine also says it has Europe’s largest titanium reserves, which it says is “capable of meeting US and EU metallic titanium demand for 25 years.”
Ukraine says it has the largest uranium reserves in Europe, and it says its beryllium reserves are “capable of satisfying 40 years of the world’s production.”
The country’s natural resources are critical in producing batteries, armor, defense materials and nuclear fuel.
Partnering with Ukraine to obtain natural resources could reduce the United States’ reliance on China and Russia to import these minerals, and Ukraine’s natural resources ministry says more than half the world’s uranium supply comes from those two countries.
What’s Going On With The Ukraine Minerals Deal?
The United States and Ukraine have been locked in a tense war of words over the deal, which is reportedly nearing a conclusion, the Wall Street Journal reported Friday evening. U.S. Treasury Secretary Scott Bessent presented Ukrainian President Volodymyr Zelensky a version of the deal last week, which he did not sign, stating he needed more time to review and wanted security guarantees for Ukraine. The first version of the deal would have given the United States 50% ownership of Ukraine’s natural resources, which would have included oil and gas in addition to the country’s mineral reserves. Trump, in response, falsely accused Ukraine of starting the war with Russia: “You should have never started it. You could have made a deal,” Trump said on Tuesday. Trump also called Zelensky a “dictator” and said the only thing he “was really good at was playing Joe Biden like a fiddle.” Zelensky responded by saying Trump was “living in a disinformation space.” Secretary of State Marco Rubio has also urged Ukraine to sign the deal, stating: “Look, we want to be in joint venture with you, not because we’re trying to steal from your country, but because we think that’s actually a security guarantee.” Zelensky on Friday indicated the two countries were making progress toward a deal, stating the “Ukrainian and U.S. teams are working on a draft agreement between our governments,” but “what matters most is getting the details right to ensure it truly works.” CNN reported Saturday morning, however, the current draft of the deal is “not the one President Zelensky would accept,” citing an unnamed source familiar with the negotiations, who called it “a strange offer to try and take from a country that is a victim of war.”
Chief Critics
Olaf Scholz, chancellor of Germany, criticized Trump’s pursuit of Ukraine’s minerals, calling it “very egotistic, very self-centered.” Scholz said Ukraine needs its resources to finance its post-war rebuilding efforts, not to use as leverage in bargaining with Trump.
What To Watch For
Whether Trump addresses the potential minerals deal with Ukraine at the Conservative Political Action Conference in Washington, D.C. on Saturday. He is scheduled to speak, and plans to meet with the leaders of Poland and Argentina. Yesterday at CPAC, national security adviser Mike Waltz claimed Zelensky would sign a deal granting the United States 50% ownership of its natural resources. “Here’s the bottom line: President Zelenskyy is going to sign that deal, and you will see that in the very short term,” Waltz said.
Further Reading
Ukraine reels in Trump with mineral riches (Politico)
Scholz slams Trump’s ‘self-centered’ bid to link Ukraine aid to rare earths access (Politico)
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