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

Syria decrees full body swimwear for women on public beaches - Region
Syria decrees full body swimwear for women on public beaches - Region

Al-Ahram Weekly

time5 hours ago

  • Al-Ahram Weekly

Syria decrees full body swimwear for women on public beaches - Region

Syria's new authorities said on Tuesday that women going to public beaches must wear burkinis or other "decent" clothes that cover the body, giving some private venues an exemption. In the largely conservative country, few women wear swimsuits that reveal their body. Six months after Islamist-led forces toppled longtime Syria ruler Bashar al-Assad, the Syrian tourism ministry announced in a statement that beachgoers must wear "more decent" clothes, citing the "public's interest" as a reason. Women must wear "burkinis or swimwear that covers more of the body" on public beaches, the statement said. Outside of swimming areas, women must wear loose-fitting clothing while men are not allowed to be topless. Private beach clubs and venues considered "luxurious" by authorities do not have to abide by the new rules, with the tourism ministry saying "Western swimsuits are allowed" there within the limits of "general morals". Other private establishments must follow the modesty rules. Generally while out in public, Syrians are asked to "wear loose clothing, cover the shoulders and knees and avoid transparent and tight clothing", according to the ministry's statement, which did not specify if and how the rules may be enforced. The announcement drew mixed reactions from social media users, adding to concerns among some Syrians over personal freedoms since the new authorities took power in December. "Syria is a moderate and open country, and it should accommodate everyone without restrictions," a woman called Shaza said on Facebook, adding that "the ministry should reconsider its decision". A man, Yahya Qabisho, expressed support for the new rules which he said reflected a "duty" to respect "the culture of Syrian society". In May, a nightclub in Damascus came under attack by armed men, killing one woman. Social media videos have showed young men chanting religious slogans and demanding the closure of bars in the capital that serve alcohol. Follow us on: Facebook Instagram Whatsapp Short link:

One year from World Cup opener, FIFA leaves questions unanswered on tickets and security
One year from World Cup opener, FIFA leaves questions unanswered on tickets and security

Al-Ahram Weekly

time9 hours ago

  • Al-Ahram Weekly

One year from World Cup opener, FIFA leaves questions unanswered on tickets and security

There is uncertainty about whether fans from some nations will be welcome — 11 of the venues are located in the U.S., where all matches will be played from the quarterfinals on. Security is a concern, too. At the last major football tournament in the U.S., the 2024 Copa America final at Miami Gardens, Florida, started 82 minutes late after spectators breached security gates. 'That was certainly a reminder and a wake-up call if anybody needed it that those types of things are going to be used in terms of the ultimate assessment of whether this World Cup is successful," said former U.S. defender Alexi Lalas, now Fox's lead football analyst. U.S. President Donald Trump's travel ban on citizens from 12 nations exempted athletes, coaches, staff and relatives while not mentioning fans. Vice President JD Vance made what could be interpreted as a warning on May 6. 'Of course, everybody is welcome to come and see this incredible event. I know we'll have visitors probably from close to 100 countries. We want them to come. We want them to celebrate. We want them to watch the game,' he said. 'But when the time is up they'll have to go home. Otherwise, they'll have to talk to Secretary Noem,' he added, speaking alongside Secretary of Homeland Security Kristi Noem. Back in U.S. for first time in 32 years The 1994 World Cup sparked the launch of Major League football with 12 teams in 1996, and $50 million in World Cup profits seeded the U.S. football Foundation, tasked with developing the sport's growth. MLS now has 30 teams, plays in 22 football specific stadiums and has club academies to grow the sport and improve talent. Next year's tournament will include 104 games, up from 64 from 1998 through 2022, and the 11 U.S. stadiums are all NFL homes with lucrative luxury suites and club seating. It also will be the first World Cup run by FIFA without a local organizing committee. 'The legacy initiative of 2026 is around how we ensure that football is everywhere in this county," U.S. football Federation CEO JT Batson said. "How do we ensure that every American can walk, ride their bike or take public transit to a safe place to play football? How do we make it to where every school in America has football accessible to their students? And how do we make it to wherever every American can truly see themselves in the game?' Interest in football has vastly increased in the U.S., with England's Premier League averaging 510,000 viewers per match window on NBC's networks last season and the European Champions League final drawing more than 2 million viewers in each of the past five years on CBS. However, CBS broadcast just 26 of 189 Champions League matches on TV in 2024-25 and streamed the rest. MLS drew about 12.2 million fans last year, second to 14.7 million in 2023-24 for the Premier League's 20 teams, but MLS has largely disappeared from broadcast TV since starting a 10-year contract with Apple TV+ in 2023. Apple spokesman Sam Citron said the company does not release viewer figures. In a fractured television landscape, different deals were negotiated by FIFA, UEFA, MLS, the NWSL, the USSF and the five major European leagues. 'You basically have over 2,800 game windows per season aired in the United States and so that requires distribution largely on streaming platforms like Paramount+ or ESPN+, but it's difficult for new fan adoption and it makes reach kind of challenging,' said Gerry Cardinale, managing partner of RedBird Capital Partners, which holds controlling interests in AC Milan and Toulouse and owns a non-controlling stake of Fenway Sports Group, parent of Liverpool. 'Kids today are getting weaned on Premier League football and Serie A football, and when you watch that as a product, it's hard for MLS to compete.' 1994 World Cup set attendance record The 1994 World Cup, a 24-nation tournament, drew a record 3.58 million fans for 52 matches. Ticket prices ranged from $25-$75 for most first round games and $180-$475 for the final at the Rose Bowl in Pasadena, California. FIFA, which has about 800 people working at an office in Coral Gables, Florida, says it will announce information on general tickets in the third quarter. It wouldn't say whether prices will be fixed or variable. Hospitality packages are available on FIFA's website through On Location. For the eight matches at MetLife Stadium in East Rutherford, New Jersey, including the final on July 19, prices range from $25,800 to $73,200 per person. Variable ticket pricing possible FIFA appears to be using variable pricing for this year's Club World Cup, played at 12 U.S. stadiums from June 14 to July 13, and some prices repeatedly have been slashed. Marriott Bonvoy, a U.S. football Federation partner, has been offering free tickets to some of its elite members. Asked about Club World Cup ticket sales and team base camp arrangements, Manolo Zubiria, the World Cup's chief tournament officer, hung up four minutes and five questions into a telephone interview with The Associated Press. Brendan O'Connell, the publicist who arranged the interview, wrote in an email to the AP: 'The guest was not prepared for those questions.' FIFA's media relations staff would not make FIFA president Gianni Infantino available to discuss the tournament. Ahead of the 1994 World Cup, FIFA announced in May 1992 the draw would take place at Las Vegas on Dec. 18 or 19, 1993. FIFA has not revealed plans for this year's draw but appears to be planning for Las Vegas on Dec. 5. Regular ticket sales began in February 1993 for the U.S. football family and general first- and second-round sales started that June. Fans submitted lottery applications in October 1993 for games from the quarterfinals on. Teams could train away from World Cup cities While not detailing ticketing plans for next year's tournament, FIFA is spreading it beyond the host cites and lists about 60 possible base camps for teams to use, paired with hotels. Some are fancy — The Greenbrier Resort in White Sulphur Springs, West Virginia — and some more Spartan — the Courtyard by Marriott Mesa at Wrigleyville West in Arizona. Thousands of arrangements must be coordinated. Major League Baseball is drawing up its schedule to ensure that the four teams whose ballparks share parking lots with World Cup stadiums — in Arlington, Texas; Kansas City, Missouri; Philadelphia; and Seattle — won't play home games on the dates of tournament matches. Boris Gartner, CEO of La Liga North America, a joint venture of the Spanish football league and Relevent Sports, said the 2026 World Cup should be viewed as just another step in the sport's long-term growth in the United States. 'If you have a clear understanding of the market and the audience, a clear understanding of the value that these properties bring to media companies, and you mix content with a commercial strategy, with the right media distribution strategy, this is something that will continue to grow over the next two decades," he said. 'If more people are watching the NWSL, more people are going to be interested in football that could potentially end up watching a Bundesliga game or La Liga game.' (For more sports news and updates, follow Ahram Online Sports on Twitter at @AO_Sports and on Facebook at AhramOnlineSports.) Short link:

Hopes rise as US and China hold second day of trade talks - International
Hopes rise as US and China hold second day of trade talks - International

Al-Ahram Weekly

time10 hours ago

  • Al-Ahram Weekly

Hopes rise as US and China hold second day of trade talks - International

The United States and China began a second day of trade talks on Tuesday, seeking to shore up a shaky tariff truce in a bitter row deepened by export curbs. The gathering of key officials from the world's two biggest economies began Monday in London, after an earlier round of talks in Geneva last month. Stock markets wavered as investors hoped the talks will bring some much-needed calm on trading floors and ease tensions between the economic superpowers. A US Treasury spokesman told AFP on Tuesday the "talks resumed earlier this" morning. One of US President Donald Trump's top advisers said he expected "a big, strong handshake" at the end of the talks in the historic Lancaster House, operated by the UK foreign ministry. Trump told reporters at the White House on Monday: "We are doing well with China. China's not easy. "I'm only getting good reports." The agenda is expected to be dominated by exports of rare earth minerals used in a wide range of things including smartphones, electric vehicle batteries and green technology. "In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy," Trump's top economic adviser, Kevin Hassett, told CNBC on Monday. But even though Beijing was releasing some supplies, "it was going a lot slower than some companies believed was optimal", he added. Still, he said he expected "a big, strong handshake" at the end of the talks. "Our expectation is that after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume," Hassett added. He also said the Trump administration might be willing to ease some recent curbs on tech exports. Concessions? Tensions between Washington and Beijing have heightened since Trump took office in January, with both countries engaging in a tariffs war hiking duties on each other's exports to three figures -- an effective trade embargo. The Geneva pact to cool tensions temporarily brought new US tariffs on Chinese goods down from 145 percent to 30 percent, and Chinese countermeasures from 125 percent to 10 percent. But Trump recently said China had "totally violated" the deal. "Investors are willing to grab on to any positive trade headline right now, as this is keeping hopes of a rally alive," said Kathleen Brooks, research director at trading group XTB. Ipek Ozkardeskaya, senior analyst at the Swissquote Bank, said that although there had been "no breakthrough" it seemed "the first day of the second round of negotiations reportedly went relatively well". "Rumours are circulating that the US may be willing to make concessions on tech exports in exchange for China easing restrictions on rare earth metal exports," she said. Rare earth shipments from China to the US have slowed since the tariff war was triggered by Trump's so-called "Liberation Day" announcements, according to Brooks. The US leader slapped sweeping levies of 10 percent on friend and foe alike, and threatened steeper rates on dozens of economies. The tariffs have already had a sharp effect, with official figures from Beijing showing Chinese exports to the United States in May plunged by 12.7 percent. China is also in talks with other trading partners -- including Japan and South Korea -- to try to build a united front to counter Trump's tariffs. Chinese leader Xi Jinping on Tuesday urged South Korea's new President Lee Jae-myung to work with Beijing to uphold free trade to ensure "the stability and smooth functioning of global and regional industrial and supply chains." "A healthy, stable, and continuously deepening China-South Korea relationship aligns with the trend of the times," Xi said in a phone call, according to the Xinhua news agency. Chinese Vice Premier He Lifeng is heading the team in London, which included Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation. Follow us on: Facebook Instagram Whatsapp Short link:

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