logo
Ukraine's mineral riches have long been eyed by its allies. Now they may be Trump's price for military aid

Ukraine's mineral riches have long been eyed by its allies. Now they may be Trump's price for military aid

CNN —
US President Donald Trump has said he wants access to Ukraine's mineral deposits in exchange for future military aid that Kyiv needs as it continues to defend itself against Russia's aggression.
While the comment highlighted Trump's transactional approach to the war in Ukraine, it was not entirely unexpected. The US and other Western countries have eyed Ukraine's mineral riches for a long time.
'We're putting in hundreds of billions of dollars. They have great rare earths. And I want security of the rare earth, and they're willing to do (that),' Trump told reporters in the Oval Office on Monday, without specifying what, if anything, Ukraine had agreed to do.
He has previously suggested that any future assistance should be provided as a loan and would be conditioned on Ukraine negotiating with Russia.
Under former US President Joe Biden, the US had provided Ukraine with $65.9 billion in military assistance since Russia launched its full-scale invasion of the country in February 2022.
Biden argued the aid was necessary because Ukraine's victory was key to America's own security. Trump, however, has made it clear he doesn't believe the US should continue providing assistance without getting something in return.
While Trump did not give any details on what he wants from Kyiv, a deal outlining a deeper cooperation between the US and Ukraine on minerals had been in the works for months before he took office in January.
A memorandum of understanding prepared under the Biden administration last year said the US would promote investment opportunities in Ukraine's mining projects to American companies in exchange for Kyiv creating economic incentives and implementing good business and environmental practices.
Ukraine already has a similar agreement with the European Union, signed in 2021.
Adam Mycyk, a partner in the Kyiv office of the global law firm Dentons, said that while the objective of the deal – securing critical mineral supplies from Ukraine – remains unchanged, Trump's approach seems to be more transactional.
'It remains to be seen what form such an agreement could take, but it would be in Ukraine's best interests for its post-war recovery and long-term economic prospects to maximize as much as possible the processing and value creation of any extracted minerals in Ukraine by Ukrainian companies,' Mycyk told CNN.
Kyiv has not yet responded to Trump's comments, but the Ukrainian government has in the past made the argument that its mineral deposits are one of the reasons the West should support Ukraine – to prevent these strategically important resources from falling into Russian hands.
Ukraine's President Volodymyr Zelensky has specifically mentioned the possibility of future investments in the country's natural resources by its Western allies as a key part of his 'Victory plan.'
'The deposits of critical resources in Ukraine, along with Ukraine's globally important energy and food production potential, are among the key predatory objectives of the Russian Federation in this war. And this is our opportunity for growth,' Zelensky said in a statement outlining the plan in October.
Nataliya Katser-Buchkovska, the co-founder of the Ukrainian Sustainable Investment Fund, said a deal that would bring US investment into Ukraine's mining sector would be beneficial for both sides.
The US largely depends on imports for the minerals it needs, many of which come from China. Of the 50 minerals classed as critical, the US was entirely dependent on imports of 12 and more than 50% dependent on imports of a further 16, according to the United States Geological Survey, a government agency.
Ukraine, meanwhile, has deposits of 22 of these 50 critical materials, according to the Ukrainian government.
'It is not only a crucial step for Ukraine's post-war economic recovery, but it's also a chance for the US to address global supply chain issues,' said Katser-Buchkovska, who served as a member of the Ukrainian Parliament from 2014 to 2019 and was the head of a parliamentary committee on energy security and transition.
China's global dominance
Although Trump used the term 'rare earths,' it is unclear whether he intended to refer specifically to rare earth minerals – a group of 17 elements that exist in the earth's core and have magnetic and conductive properties that make them crucial to the production of electronics, clean energy technologies and some weapon systems.
Ukraine doesn't have globally significant reserves of rare earth minerals, but it does have some of the world's largest deposits of graphite, lithium, titanium, beryllium and uranium, all of which are classed by the US as critical minerals. Some of these reserves are in areas that are currently under Russian occupation.
China has long dominated the global production of rare earth minerals and other strategically important materials. It is responsible for nearly 90% of global processing of rare earth minerals, according to the Center for Strategic and International Studies (CSIS). On top of that, China is also the world's largest producer of graphite and titanium, and a major processor of lithium.
The latest trade spat between Washington and Beijing makes it even more important for the US to look for alternative suppliers.
The economic measures China announced on Tuesday in retaliation for Trump's new tariffs include new export controls on more than two dozen metal products and related technologies. While they do not cover the most critical materials the US needs, the move indicates that China is prepared to use its mineral riches as leverage in trade disputes.
Mycyk said that the demand for these critical materials is expected to surge because of the global transition to electric vehicles and renewable energy technologies.
'Ukraine's deposits are thus globally significant, offering diversification away from dominant producers like China. Keeping these resources under Ukrainian control is crucial for maintaining its economic sovereignty,' he added.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

US police make arrests in downtown LA during nighttime curfew - International
US police make arrests in downtown LA during nighttime curfew - International

Al-Ahram Weekly

time5 hours ago

  • Al-Ahram Weekly

US police make arrests in downtown LA during nighttime curfew - International

Downtown Los Angeles was largely calm overnight into Wednesday, with police arresting at least 25 people for violating a curfew after a fifth day of protests against President Donald Trump's immigration crackdown. Heavily armed security officers, including several riding horses, patrolled near government buildings, while men boarded up storefronts after dark on Tuesday to protect against vandalism. Looting and vandalism in the second-biggest US city have marred the largely peaceful protests over ramped-up arrests by immigration authorities. The demonstrations, which began Friday, and isolated acts of violence prompted Trump to take the extraordinary step of sending in troops, over the objection of the state governor. One protester told AFP the arrest of migrants in a city with large immigrant and Latino populations was the root of the unrest. "I don't think that part of the problem is the peaceful protests. It's whatever else is happening on the other side that is inciting violence," she said Tuesday. Los Angeles Mayor Karen Bass said the curfew -- meant to stop vandalism and looting -- was in effect within one square mile (2.5 square kilometres) of the city's more-than-500 square mile area from 8:00 pm and 6:00 am (0300 to 1300 GMT). That zone was off-limits for everyone apart from residents, journalists and emergency services, she added. Protests against immigration arrests by federal law enforcement have also sprung up in cities around the country, including New York, Atlanta, Chicago, San Francisco and Austin. On Tuesday, in the Atlanta suburb of Brookhaven, dozens of demonstrators waved American and Mexican flags and held signs against US Immigration and Customs Enforcement (ICE), the federal agency that has ramped up arrests and deportations of migrants under Trump. "You got people that are being arrested on the street by (immigration) agents that don't wear badges, wear masks... it makes me really angry," 26-year-old protester Brendon Terra told AFP. Breaking curfew The Los Angeles protests again turned ugly Tuesday night, but an hour into the curfew, only a handful of protesters were left downtown, with police making several arrests as they warned stragglers to leave. "Multiple groups continue to congregate" within the designated downtown curfew area, the Los Angeles Police Department (LAPD) wrote on X late Tuesday. "Those groups are being addressed, and mass arrests are being initiated." Police arrested at least 25 people on suspicion of violating the curfew as of Tuesday evening, the Los Angeles Times reported, citing an LAPD spokesperson. At their largest, the protests have included a few thousand people taking to the streets, but smaller groups have used the cover of darkness to set fires, daub graffiti, and smash windows. Overnight Monday, 23 businesses were looted, police said, adding that more than 500 people had been arrested over recent days. 'Provide protection' Trump has activated 4,000 National Guard troops in Los Angeles, along with 700 active-duty Marines, in what he has claimed is a necessary escalation to take back control, even though local law enforcement authorities insisted they could handle the unrest. A military spokeswoman said the Marines were expected to be on the streets by Wednesday. Their mission will be to guard federal facilities and provide protection to federal officers during immigration enforcement operations. The Pentagon said the deployment would cost US taxpayers $134 million. Photographs issued by the Marine Corps showed men in combat fatigues using riot shields to practice crowd control techniques at the Naval Weapons Station Seal Beach. Late Tuesday, Texas Governor Greg Abbott said his state would deploy its National Guard "to locations across the state to ensure peace & order" after solidarity protests. Behaving like 'a tyrant' In sprawling Los Angeles on Tuesday, it was largely a typical day, with tourists thronging Hollywood Boulevard, children attending school and commuter traffic choking streets. But at a military base in North Carolina, Trump painted a darker picture. "What you're witnessing in California is a full-blown assault on peace, on public order and national sovereignty," the Republican told troops at Fort Bragg. "We will not allow an American city to be invaded and conquered by a foreign enemy." California Governor Gavin Newsom, a Democrat who has clashed with the president before, said Trump's shock militarisation of the city was the behaviour of "a tyrant, not a president." In a filing to the US District Court in Northern California, Newsom asked for an injunction preventing the use of troops for policing. US law largely prevents the use of the military as a police force -- absent the declaration of an insurrection, which Trump has mused. The president "is trying to use emergency declarations to justify bringing in first the National Guard and then mobilising Marines," said law professor Frank Bowman. Follow us on: Facebook Instagram Whatsapp Short link:

Trump's China ‘truce' is nothing of the sort
Trump's China ‘truce' is nothing of the sort

Egypt Independent

time9 hours ago

  • Egypt Independent

Trump's China ‘truce' is nothing of the sort

CNN — At long last, the United States has reached a trade agreement with China. Again. After a testy war of words that escalated into a tit-for-tat restriction on key exports, American and Chinese officials this week met in the United Kingdom with a singular goal: Find a way to agree to what they had agreed to a month earlier in Geneva. It appears the countries' top trade negotiators have accomplished that. On Tuesday night, both Chinese and Trump officials said they had agreed to a framework to implement the consensus they reached in May, and the trade truce would be sent to their respective leaders for their approval. Businesses, consumers and Wall Street investors will no doubt breathe a sigh of relief: Burdensome tariffs have raised significant anxiety, and easing trade barriers between the world's two largest economies should lower costs and help inject some much-needed certainty into an economy that has been demonstrating some signs of strain. President Donald Trump on Wednesday said in a Truth Social post that a 'deal' with China has been completed. 'Our deal with China is done,' Trump said in his all-caps social media post. Trump said both countries agreed to ease export restrictions, per the prior arrangement agreed upon in Geneva in May. The president also confirmed on Wednesday in his post that the deal included 'full magnets, and any necessary rare earths, will be supplied, up front, by China.' But in reality, the trade truce – if that's really what was accomplished this time around – is mostly just a return to the already-tense state of affairs from before April 2. Tariff rates from both countries remain historically high, and significant export restrictions remain in place. The United States has not opened its doors to China's autos, nor is it going to sell its high-end AI chips anytime soon. And, in Trump's parlance, China isn't treating America much more 'fairly' after this agreement than it did before. A much-needed détente Without a doubt, a trade agreement was much needed. After Trump's April 2 'Liberation Day' announcements, tensions ran so high that trade between the United States and China came to an effective halt. A 145% tariff on most Chinese imports made the math impossible for US businesses to buy virtually anything from China, America's second-largest trading partner. US Treasury Secretary Scott Bessent, America's chief negotiator in both trade talks with China, said previous tariff levels were 'unsustainable.' On May 12, delegates from China and the United States announced they would significantly roll back their historically high tariffs on one another. Economists pared back their recession forecasts, and moribund consumer confidence rebounded. But Trump and his administration in recent weeks grew increasingly hostile toward China, accusing the country of breaking the promises it made in mid-May. China similarly said the United States failed to live up to its obligations under the Geneva agreement. The Trump administration had expected China to lift restrictions on rare-earth materials that are critical components for a wide range of electronics, but China has only very slowly allowed them to return to the open market, causing intense displeasure inside the Trump administration and prompting a series of export restrictions on US goods to China, three administration officials told CNN last month. China has a virtual monopoly on rare earths, without which cars, jet engines, contrast dye used in MRI machines and some cancer drugs cannot be manufactured. Trump told reporters Friday that Chinese President Xi Jinping had agreed to allow exports of rare earth minerals products to begin, but industry analysts said the crucial materials had not been flowing to the United States as they once had. If both countries satisfy the terms of the agreement this time around, the de-escalation should prevent the direst warnings about the trade war, including potential pandemic-level shortages. Back to reality Despite the good vibes, the United States and China remain in an economic standoff. The Trump administration – and the Biden administration before it – have maintained that Chinese companies are more than happy to sell inexpensive products to the US market but that China places significant restrictions on US businesses operating in the country and encourages Chinese companies to steal American intellectual property. China has long disputed those claims. Trump, in his first term, raised tariffs on China based on national security concerns. Biden maintained many of those tariffs and doubled down on some. But the second Trump administration has taken trade barriers to an unprecedented level. It has placed a 10% universal tariff on virtually all goods coming into the United States. It put in place an additional 20% tariff on Chinese goods in an effort to get China to take action to reduce the flow of fentanyl over the US border. Both of those extraordinary tariffs remain in place on most Chinese goods, with the exception of some products like electronics. In addition, the White House closed the so-called de minimis exemption that allowed packages with a value of under $800 to come into the United States tariff-free. Hefty new tariffs remain in place on small packages, undermining the business models of Chinese ecommerce giants Shein and Temu. The compounding tariffs create significant trade barriers with America's second-largest trading partner, raising prices for American businesses and consumers with no easy fixes or clear market alternatives. Some gigantic companies, such as Apple, have complex supply chains that can withstand some of the price pressures. But even Apple, which has said it would ship most US iPhones from India as Chinese tariffs rise, said it would face a $900 million quarterly cost increase because of tariffs – at their current levels, not at the sky-high 145% rate. Other businesses, such as Boeing, have been completely shut out of China's market. Even without any tariffs or other formal barriers by China on purchases of US aircraft, Boeing has made virtually no sales in China, the world's largest for aircraft purchases, since 2019. So a trade truce may be better than the alternative – if it lasts this time.

OPEN// FM holds talks with Iranian, Omani counterparts
OPEN// FM holds talks with Iranian, Omani counterparts

Middle East

time10 hours ago

  • Middle East

OPEN// FM holds talks with Iranian, Omani counterparts

CAIRO, June 11 (MENA) - Minister of Foreign Affaires, Emigration and Egyptian Expatriates Badr Abdelatty had talks on Wednesday with his Omani and Iranian counterparts; Badr Albusaidi and Abbas Araghchi respectively. The meeting took place on the fringe of the Oslo Forum. Abdelatty asserted that Egypt gives a top priority to realize calmness and prevent any escalation in the region. He stressed that there is no room for military solutions to regional crises. He underlined Egypt's support for the negotiation process between the US and Iran regarding the Iranian nuclear program; a position he conveyed during his meetings with his Iranian counterpart and the Director General of the International Atomic Energy Agency. Abdelatty stood on the two ministers' evaluation of the US-Iranian negotiations, hailing keenness of both the American and Iranian sides to continue dialogue through diplomatic channels. He commended Oman's mediation efforts in this regard, reiterating Egypt's support for diplomatic initiatives aimed at reaching compromises that contribute to bridging viewpoints, curbing tensions in the region, and supporting regional security and stability. (MENA) M N E/M O H

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store