Future extraction of natural resources was intended to contribute to the country’s reconstruction.
The planned deal between the U.S. and Ukraine regarding access to natural resources has fallen through. The signing was scheduled for last Friday, but the meeting between Ukrainian President Volodymyr Zelensky, U.S. President Donald Trump, and his Vice President JD Vance ended in a diplomatic clash that has caused an international stir. Trump accused Zelensky of lacking gratitude for the support already provided. Zelensky had previously demanded security guarantees as a prerequisite for peace negotiations with Russia.
Such guarantees were not included in the document that was supposed to be signed on Friday. Unlike an earlier draft, which proposed that the U.S. would receive $500 billion of potential revenue from Ukrainian natural resources in exchange for past military and financial aid, the revised agreement does not focus on direct repayment. Instead, a joint fund was planned for rebuilding the country, which has been attacked by Russia. Under this agreement, Ukraine would contribute 50 percent of the proceeds from the future monetization of state-owned mineral resources—including oil, gas, and related infrastructure such as port facilities—into the fund. How the fund will operate and be managed is to be determined at a later date, the document states.
Extent of Rare Earth Deposits Unclear
According to an analysis by the German Bundestag (PDF), Ukraine possesses reserves of titanium, lithium, and rare earth elements. However, the U.S. think tank Center for Strategic and International Studies points out that data on the potential economic extraction of these resources is limited. Additionally, the war has destroyed critical infrastructure necessary for mining, including energy supply systems. Another challenge is the further processing of these raw materials, as China dominates this stage of the value chain, while the necessary capacities in both the U.S. and Europe are still being developed.
Whether the deal will still materialize and in what form remains unclear. While the Ukrainian president remains open to an agreement, U.S. Treasury Secretary Scott Bessent has stated that it is off the table for now.
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