Ukraine US mineral deal – US and Ukraine agree terms on critical minerals deal amid talks to end Russia war: News agency Reuters

The United States and Ukraine have finalised a minerals deal amid rising tensions between the two nations as Washington aligns with Moscow in efforts to end the Ukraine-Russia war, news agency Reuters reported. Ukrainian officials hope the agreement will improve ties with the Donald Trump administration and lay the groundwork for a long-term US security commitment.

The White House considers the deal for rare earth elements is a first step toward reaching a ceasefire with Russia. The agreement follows a heated exchange between Ukrainian President Volodymyr Zelenskiy and US President Donald Trump, who last week labelled Zelenskiy an unpopular “dictator” and urged him to broker a swift peace deal or risk losing his country.

According to Ukrainian officials, Kyiv is now prepared to sign an agreement with the US for the joint development of its mineral resources, including oil and gas, after the US dropped its demand for a right to $500bn in potential revenue from resource exploitation, the Financial Times reported.

Ukraine has proposed a deal to supply the US with rare earth elements–essential for various technologies–in response to Trump’s expressed interest earlier this month. The offer was originally put forward last fall by Zelenskyy as part of his strategy to bolster Kyiv’s position in future negotiations with Moscow.

However, Kyiv initially rejected the original US proposals, citing concerns over insufficient security guarantees for Ukraine and the hefty $500 billion price tag, which it argued would burden future generations with unsustainable debt.

The original draft, which Trump presented as a means of Ukraine repaying the US for military and financial had provoked outrage in Kyiv. However, the Ukraninan officials said that they argued that they had negotiated far more favourable terms, according to Financial Times.

WHAT ARE RATE EARTH ELEMENTS

Rare earth elements are a group of 17 essential metals used in various consumer technologies, including cellphones, hard drives, and electric and hybrid vehicles. It remains unclear whether Trump is specifically targeting these elements in Ukraine, which is also rich in other valuable minerals such as lithium, titanium, and uranium.

China, Trump’s primary geopolitical rival, is the world’s leading producer of rare earth elements. Both the US and Europe have been working to reduce their reliance on Beijing for these critical resources.

For Ukraine, such an agreement could help secure continued military aid from its most significant and influential ally. Losing that support would be devastating for the country, which has been at war for nearly three years following Russia’s full-scale invasion in February 2022. The proposal also comes at a time when reliable access to critical minerals is becoming increasingly scarce worldwide.

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