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AllAfrica
06-05-2025
- Business
- AllAfrica
Zelensky – not Trump – ‘won' the US-Ukraine minerals deal
Last week, the Trump administration signed a deal with Ukraine that gives it privileged access to Ukraine's natural resources. Some news outlets described the deal as Ukrainian President Volodymyr Zelensky 'caving' to US President Donald Trump's demands. But we see the agreement as the result of clever bargaining on the part of Ukraine's wartime president. So, what does the deal mean for Ukraine? And will this help strengthen America's mineral supply chains? Ukraine is home to 5% of the world's critical mineral wealth, including 22 of the 34 minerals identified by the European Union as vital for defense, construction and high-tech manufacturing. However, there's a big difference between resources (what's in the ground) and reserves (what can be commercially exploited). Ukraine's proven mineral reserves are limited. Further, Ukraine has an estimated mineral wealth of around US$14.8 trillion, but more than half of this is in territories currently occupied by Russia. American support for overseas conflict is usually about securing US economic interests — often in the form of resource exploitation. From the Middle East to Asia, US interventions abroad have enabled access for American firms to other countries' oil, gas and minerals. But the first iteration of the Ukraine mineral deal, which Zelensky rejected in February, had been an especially brazen resource grab by Trump's government. It required Ukraine to cede sovereignty over its land and resources to one country (the US), in order to defend itself from attacks by another (Russia). These terms were highly exploitative of a country fighting against a years-long military occupation. In addition, they violated Ukraine's constitution, which puts the ownership of Ukraine's natural resources in the hands of the Ukrainian people. Were Zelensky to accept this, he would have faced a tremendous backlash from the public. In comparison, the new deal sounds like a strategic and (potentially) commercial win for Ukraine. First, this agreement is more just, and it's aligned with Ukraine's short- and medium-term interests. Zelensky describes it as an 'equal partnership' that will modernize Ukraine. Under the terms, Ukraine will set up a United States–Ukraine Reconstruction Investment Fund for foreign investments into the country's economy, which will be jointly governed by both countries. Ukraine will contribute 50% of the income from royalties and licenses to develop critical minerals, oil and gas reserves, while the US can make its contributions in-kind, such as through military assistance or technology transfers. Ukraine maintains ownership over its natural resources and state enterprises. And the licensing agreements will not require substantial changes to the country's laws or disrupt its future integration with Europe. Importantly, there is no mention of retroactive debts for the US military assistance already received by Ukraine. This would have created a dangerous precedent, allowing other nations to seek to claim similar debts from Ukraine. Finally, the deal also signals the Trump administration's commitment to 'a free, sovereign and prosperous Ukraine,' albeit still without any security guarantees. Profits may be a long time coming Unsurprisingly, the Trump administration and conservative media in the US are framing the deal as a win. For too long, Trump argues, Ukraine has enjoyed US taxpayer-funded military assistance, and such assistance now has a price tag. The administration has described the deal to Americans as a profit-making endeavour that can recoup monies spent defending Ukrainian interests. But in reality, profits are a long way off. The terms of the agreement clearly state the fund's investment will be directed at new resource projects. Existing operations and state-owned projects will fall outside the terms of the agreement. Mining projects typically work within long time frames. The move from exploration to production is a slow, high-risk and enormously expensive process. It can often take over a decade. Add to this complexity the fact that some experts are skeptical Ukraine even has enormously valuable reserves. And to bring any promising deposits to market will require major investments. China factor It's possible, however, that profits are a secondary calculation for the US. Boxing out China is likely to be as – if not more – important. Like other Western nations, the US is desperate to diversify its critical mineral supply chains. China controls not just a large proportion of the world's known rare earths deposits, it also has a monopoly on the processing of most critical minerals used in green energy and defense technologies. The US fears China will weaponize its market dominance against strategic rivals. This is why Western governments increasingly make mineral supply chain resilience central to their foreign policy and defense strategies. Given Beijing's closeness to Moscow and their deepening cooperation on natural resources, the US-Ukraine deal may prevent Russia — and, by extension, China — from accessing Ukrainian minerals. The terms of the agreement are explicit: 'states and persons who have acted adversely towards Ukraine must not benefit from its reconstruction.' Finally, the performance of 'the deal' matters just as much to Trump. Getting Zelensky to sign on the dotted line is progress in itself, plays well to Trump's base at home, and puts pressure on Russian President Vladimir Putin to come to the table. So, the deal is a win for Zelensky because it gives the US a stake in an independent Ukraine. But even if Ukraine's critical mineral reserves turn out to be less valuable than expected, it may not matter to Trump. Eve Warburton is research fellow, Department of Political and Social Change, and director, Indonesia Institute, Australian National University and Olga Boichak is senior lecturer in digital cultures, Australian Research Council DECRA fellow, University of Sydney This article is republished from The Conversation under a Creative Commons license. Read the original article.
Yahoo
03-05-2025
- Politics
- Yahoo
‘US will not turn its back on Ukraine,' Trump's spiritual advisor says after briefing American president
Pastor Mark Burns, the man described as U.S. President Donald Trump's 'spiritual advisor,' said he believes he played a small part in strengthening U.S.-Ukraine relations after briefing Trump on what he witnessed during a recent visit to Ukraine. 'I shared with the president and the White House what I experienced in Ukraine,' Burns told the Kyiv Independent. 'The atrocities done to Ukrainian women, children, senior citizens, and civilians at the hands of the Russians. I shared stories of the 20,000 kidnapped children and the 700 places of faith that were targeted by the Russians.' Asked how Trump responded to his account of the war, Burns said: 'The president always shows concern and care for innocent people dying and suffering. Which is why you see him putting more pressure on (Russian President Vladimir) Putin and expressing his displeasure with Putin.' Burns, who once backed Trump's pause on military aid to Ukraine, dramatically shifted his stance after witnessing the aftermath of a Russian missile strike in Kryvyi Rih that killed 20 people, including nine children. In an earlier interview, he told the Kyiv Independent that 'supporting Ukraine is America first.' Read also: 'Putin is pure evil' — Trump's spiritual advisor on Russia's war against Ukraine Now, after meeting with Trump in recent days, Burns says the president is taking action. 'In fact, President Donald Trump has recently approved the first round of weapons deliveries to Ukraine, sending a powerful message that the United States will not back down in supporting Ukraine's right to defend itself,' Burns said. He also highlighted the creation of a U.S.-Ukraine Reconstruction Investment Fund, calling it 'a monumental step in providing Ukraine with the resources it needs to rebuild and grow.' The fund was created after the U.S. and Ukraine signed the long-awaited minerals agreement on April 30. American officials have prepared several options for Trump to ramp up economic pressure on Russia in response to Putin's continued refusal to end the war against Ukraine, Bloomberg reported on May 2. Though Trump initially threatened tariffs and sanctions after taking office, none have materialized so far. With Russia intensifying its strikes and rejecting U.S.-backed ceasefire proposals, Trump has reportedly begun questioning Moscow's intentions. Read also: Vance says war in Ukraine won't end 'any time soon,' urges sides to agree on peace terms We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
01-05-2025
- Business
- Yahoo
US, Ukraine sign ‘economic partnership' centered on Ukraine's wealth of critical minerals – but extracting them isn't so simple
The U.S. and Ukraine have a new 'economic partnership' centered on Ukraine's mineral wealth as Ukraine continues to fight off Russia's invasion, officials from both countries announced on April 30, 2025. After a rocky start to negotiations, U.S. Treasury Secretary Scott Bessent said the two countries had signed an agreement 'to work collaboratively and invest together to ensure that our mutual assets, talents, and capabilities can accelerate Ukraine's economic recovery.' He described the agreement and establishment of the U.S.-Ukraine Reconstruction Investment Fund as an 'economic partnership.' The fund, which Ukraine Economy Minister Yulia Svyrydenko said would be financed from new licenses for critical materials, oil and gas extraction, creates a strategic alignment between the two countries as the war continues. Efforts to secure a ceasefire with Russia have so far failed. So, what exactly do Ukraine's mineral resources include, and how abundant and accessible are they? The war has severely limited access to data about Ukraine's natural resources. However, as a geoscientist with experience in resource evaluation, I have been reading technical reports, many of them behind paywalls, to understand what's at stake. Here's what we know: Ukraine's mineral resources are concentrated in two geologic provinces. The larger of these, known as the Ukrainian Shield, is a wide belt running through the center of the country, from the northwest to the southeast. It consists of very old, metamorphic and granitic rocks. A multibillion-year history of fault movement and volcanic activity created a diversity of minerals concentrated in local sites and across some larger regions. A second province, close to Ukraine's border with Russia in the east, includes a rift basin known as the Dnipro-Donets Depression. It is filled with sedimentary rocks containing coal, oil and natural gas. Before Ukraine's independence in 1991, both areas supplied the Soviet Union with materials for its industrialization and military. A massive industrial area centered on steelmaking grew in the southeast, where iron, manganese and coal are especially plentiful. By the 2000s, Ukraine was a significant producer and exporter of these and other minerals. It also mines uranium, used for nuclear power. In addition, Soviet and Ukrainian geoscientists identified deposits of lithium and rare earth metals that remain undeveloped. However, technical reports suggest that assessments of these and some other critical minerals are based on outdated geologic data, that a significant number of mines are inactive due to the war, and that many employ older, inefficient technology. That suggests critical mineral production could be increased by peacetime foreign investment, and that these minerals could provide even greater value than they do today to whomever controls them. Critical minerals are defined as resources that are essential to economic or national security and subject to supply risks. They include minerals used in military equipment, computers, batteries and many other products. A list of 50 critical minerals, created by the U.S. Geological Survey, shows that more than a dozen relied upon by the U.S. are abundant in Ukraine. A majority of those are in the Ukrainian Shield, and roughly 20% of Ukraine's total possible reserves are in areas currently occupied by Russia's military forces. Three critical minerals especially abundant in Ukraine are manganese, titanium and graphite. Between 80% and 100% of U.S. demand for each of these currently comes from foreign imports.. Manganese is an essential element in steelmaking and batteries. Ukraine is estimated to have the largest total reserves in the world at 2.4 billion tons. However, the deposits are of fairly low grade – only about 11% to 35% of the rock mined is manganese. So it tends to require a lot of material and expensive processing, adding to the total cost. This is also true for graphite, used in battery electrodes and a variety of industrial applications. Graphite occurs in ore bodies located in the south-central and northwestern portion of the Ukrainian Shield. At least six deposits have been identified there, with an estimated total of 343 million tons of ore– 18.6 million tons of actual graphite. It's the largest source in Europe and the fifth largest globally. Titanium, a key metal for aerospace, ship and missile technology, is present in as many as 28 locations in Ukraine, both in hard rock and sand or gravel deposits. The size of the total reserve is confidential, but estimates are commonly in the hundreds of millions of tons. A number of other critical minerals that are used in semiconductor and battery technologies are less plentiful in Ukraine but also valuable. Zinc occurs in deposits with other metals such as lead, gold, silver and copper. Gallium and germanium are byproducts of other ores – zinc for gallium, lignite coal for germanium. Nickel and cobalt can be found in ultramafic rock, with nickel more abundant. No figures for Ukraine's reserves of these elements were available in early 2025, with the exception of zinc, whose reserves have been estimated at around 6.1 million tons, putting Ukraine among the top 10 nations for zinc. Geologists have identified potentially significant volumes in Ukraine of three other types of critical minerals important for energy, military and other uses: lithium, rare earth metals and scandium. None of these had been mined there as of early 2025, though a lithium deposit had been licensed for commercial extraction. The largest potential lithium reserves exist at three sites in the south-central and southeastern Ukrainian Shield, where the grade of ore is considered moderate to good. How much lithium these reserves hold remains confidential, but technical reports suggest it's on the order of 160 million tons of ore and 1.6 million to 3 million tons of lithium oxide. If most of this could be recovered in a profitable way, it would place Ukraine among the top five nations for lithium. Smaller volumes of tantalum and niobium, also used in steel alloys and technology, have also been identified in these reserves. Most of Ukraine's lithium occurs as petalite, which, unlike the other main lithium mineral, spodumene, requires more expensive processing. Rare earth elements in Ukraine are known to exist in several sites of volcanic origin and in association with uranium in the south-central portion of the Ukrainian Shield. These haven't been developed, though sampling has indicated commercial potential in some sites, while other sites appear less viable. Rare earth elements in high demand for superior magnets and electronics – neodymium, praseodymium, terbium and dysprosium – are all present in varying amounts in these areas. Other critical minerals are associated with these deposits, especially zirconium, tantalum and niobium, in undetermined but potentially significant amounts. Finally, scandium, used in aluminum alloys for aerospace components, has been identified as a byproduct of processing titanium ores. Ukraine's scandium does not appear to have been studied in enough detail to evaluate its commercial potential. However, world production, about 30 to 40 tons per year, is forecast to grow rapidly. It's clear that Ukraine is endowed with valuable resources. However, extracting them will require roads and railways for access, infrastructure such as electricity and mining and processing technology, investment, technical expertise, environmental considerations and, above all, cessation of military conflict. Those are the true determinants of Ukraine's mining future. This article, originally published March 11, 2025, has been updated with the agreement signed. This article is republished from The Conversation, a nonprofit, independent news organization bringing you facts and trustworthy analysis to help you make sense of our complex world. It was written by: Scott L. Montgomery, University of Washington Read more: What's so special about Ukraine's minerals? A geologist explains Greenland's rapidly melting ice and landslide-prone fjords make the oil and minerals Trump covets dangerous to extract The US is worried about its critical minerals supply chains – essential for electric vehicles, wind power and the nation's defense Scott L. Montgomery does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Yahoo
01-05-2025
- Business
- Yahoo
Ukraine signs deal to give US access to rare minerals with Trump admin 'committed to a peace process': Bessent
Ukraine has signed a deal with the United States, giving the U.S. access to Ukraine's rare minerals as it continues to work with the Trump administration in an effort to end its three-year war with Russia. Ukrainian Economy Minister and Deputy Prime Minister Yulia Svyrydenko flew to Washington, D.C., Wednesday to help finalize the deal. "On behalf of the Government of Ukraine, I signed the Agreement on the Establishment of a United States–Ukraine Reconstruction Investment Fund. Together with the United States, we are creating the Fund that will attract global investment into our country," she wrote on X. Upon taking office, President Donald Trump said he wanted Ukraine's rare earth materials as a condition for continued U.S. support in the war. He described it as reimbursement for the billions of dollars of U.S. military assistance given to Ukraine. Russian Attacks On Ukraine Intensify In Make-or-break Week For Peace Talks Discussions about a possible deal stalled after a combative meeting between Trump administration officials and Ukrainian President Volodymyr Zelenskyy in the Oval Office. Read On The Fox News App The agreement will establish the United States-Ukraine Reconstruction Investment Fund to help accelerate Ukraine's economic recovery, Treasury Secretary Scott Bessent said. "This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term," Bessent said in a statement. "President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides' commitment to lasting peace and prosperity in Ukraine. And, to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine." Trump Marks 100 Days In Office Embroiled In Trade Battles, Deadly Wars And Hard-pressed Deals The U.S. is seeking access to more than 20 raw materials considered strategically critical to its interests, including some non-minerals such as oil and natural gas. Among them are Ukraine's deposits of titanium, which is used for making aircraft wings and other aerospace manufacturing, and uranium, which is used for nuclear power, medical equipment and weapons. Ukraine also has lithium, graphite and manganese, which are used in electric vehicle batteries. The deal will establish an equal partnership between the two countries and last for 10 years. Financial contributions to a joint fund would be made in cash, and only new U.S. military aid would count toward the American share. Neither party will have a majority vote, reflecting an equal partnership between Ukraine and the United States, Svyrydenko said. The fund is supported by the U.S. government through the U.S. International Development Finance Corporation. Unlike an earlier draft of the agreement, the deal would not conflict with Ukraine's path toward European Union membership, a key provision for Kyiv. Under the terms of the deal, the Ukrainian government will determine what minerals will be extracted and where, Svyrydenko said. The Associated Press contributed to this report. Original article source: Ukraine signs deal to give US access to rare minerals with Trump admin 'committed to a peace process': Bessent
Sky News AU
01-05-2025
- Business
- Sky News AU
Ukraine signs deal to give US access to rare minerals, as Donald Trump admin says it is 'committed to a peace process': Bessent
Ukraine has signed a deal with the United States, giving the U.S. access to Ukraine's rare minerals as it continues to work with the Trump administration in an effort to end its three-year war with Russia. Ukrainian Economy Minister and Deputy Prime Minister Yulia Svyrydenko flew to Washington, D.C., on Wednesday to help finalize the deal. "On behalf of the Government of Ukraine, I signed the Agreement on the Establishment of a United States–Ukraine Reconstruction Investment Fund. Together with the United States, we are creating the Fund that will attract global investment into our country," she wrote on X. Upon taking office, President Donald Trump said he wanted Ukraine's rare earth materials as a condition for continued U.S. support in the war. He described it as reimbursement for the billions of dollars of U.S. military assistance given to Ukraine. Discussions about a possible deal stalled following a combative meeting between Trump administration officials and Ukrainian President Volodymyr Zelensky in the Oval Office. The agreement will establish the United States-Ukraine Reconstruction Investment Fund to help accelerate Ukraine's economic recovery, Treasury Secretary Scott Bessent said. "This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term" Bessent said in a statement. "President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides' commitment to lasting peace and prosperity in Ukraine. And to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine." The U.S. is seeking access to more than 20 raw materials deemed strategically critical to its interests, including some non-minerals such as oil and natural gas. Among them are Ukraine's deposits of titanium, which is used for making aircraft wings and other aerospace manufacturing, and uranium, which is used for nuclear power, medical equipment and weapons. Ukraine also has lithium, graphite and manganese, which are used in electric vehicle batteries. The deal will establish an equal partnership between the two countries and last for 10 years. Financial contributions to a joint fund would be made in cash, and only new U.S. military aid would count toward the American share. Neither party will have a majority vote, reflecting an equal partnership between Ukraine and the United States, Svyrydenko said. The fund is supported by the U.S. government through the U.S. International Development Finance Corporation. Unlike an earlier draft of the agreement, the deal would not conflict with Ukraine's path toward European Union membership — a key provision for Kyiv. Under the terms of the deal, the Ukrainian government will determine where and what minerals will be extracted, Svyrydenko said. The Associated Press contributed to this report Originally published as Ukraine signs major deal to give US access to rare minerals, as Donald Trump admin says it is 'committed to a peace process': Bessent
