US President Donald Trump announces he is close to a deal with Ukraine regarding the development of its minerals industry. This potential agreement could provide the US with a valuable source of rare earth elements, crucial for various technologies.
Ahead of a phone call with Russian leader Vladimir Putin to discuss ending the Ukraine war, US President Donald Trump stated he was nearing a deal with Ukraine regarding the development of its minerals industry. This potential agreement could provide the US with a valuable source of rare earth elements , crucial for various technologies.
Trump indicated that the proposal, initially put forward by Ukrainian President Volodymyr Zelenskyy last year, aimed to bolster Kyiv's negotiating position with Moscow. 'We really have this big potential in the territory which we control,' Andrii Yermak, chief of staff to the Ukrainian president, said in an exclusive interview with The Associated Press. 'We are interested to work, to develop, with our partners, first of all, with the United States.' In a recent Fox News interview, Trump suggested that any deal involving minerals for continued American support to Ukraine would involve a staggering half a trillion US dollars. 'I told them that I want the equivalent, like $US500 billion of rare earth, and they've essentially agreed to do that, so at least we don't feel stupid. Otherwise we're stupid,' he said.Rare earth elements encompass 17 essential elements found in many consumer technologies, including mobile phones, hard drives, electric, and hybrid vehicles. It remains unclear if Trump is seeking specific rare earth elements from Ukraine, which also possesses other valuable minerals. China, a major geopolitical rival of the US, holds the dominant position as the world's largest producer of rare earth elements. Both the US and Europe have strived to reduce their reliance on Beijing for these critical resources. For Ukraine, such a deal would guarantee that its most crucial ally doesn't curtail military support. This would be a devastating blow to the country, which has been engaged in a near-three-year war following Russia's full-scale invasion on February 24, 2022. This proposal emerges at a time when global access to critical minerals is becoming increasingly challenging.Ukraine's rare earth elements remain largely untapped due to the ongoing war and state policies governing the mineral industry. The country also lacks comprehensive data to guide the development of rare earth mining. Geological information is scarce because mineral reserves are dispersed across Ukraine, and existing studies are considered inadequate. The true potential of the industry remains obscured by insufficient research, according to businesspeople and analysts. However, the outlook for Ukrainian natural resources is generally optimistic. Ukraine's reserves of titanium, a key component for aerospace, medical, and automotive industries, are believed to be among the largest in Europe. The country also possesses some of Europe's largest known reserves of lithium, essential for producing batteries, ceramics, and glass. In 2021, Ukraine's mineral industry contributed 6.1% to the country's gross domestic product and 30% to exports. An estimated 40% of Ukraine's metallic mineral resources are inaccessible due to Russian occupation, according to data from We Build Ukraine, a Kyiv-based think tank. Ukraine maintains that it is in Trump's interest to develop the remaining resources before further Russian advances seize more territory. The European Commission, the executive branch of the European Union, has recognized Ukraine as a potential supplier for over 20 critical raw materials and concluded that if the country joins the 27-nation EU, it could strengthen the European economy. Treasury Secretary Scott Bessent will engage in talks with Ukrainian President Volodymyr Zelenskyy regarding a minerals agreement. Details of any deal are likely to unfold during meetings between US and Ukrainian officials. Trump announced on Tuesday that he would dispatch Treasury Secretary Scott Bessent to Ukraine to meet with Zelenskyy. 'This War MUST and WILL END SOON — Too much Death and Destruction. The U.S. has spent BILLIONS of Dollars Globally, with little to show,' Trump stated on his social media platform about the trip. US companies have expressed interest, according to Ukrainian business officials. However, reaching a formal agreement would probably require legislation, geological surveys, and negotiation of specific terms. It remains unclear what security guarantees companies would demand to risk operating in Ukraine, even in the event of a ceasefire. And the nature of financing agreements that would underpin contracts between Ukraine and US companies is still unknown
DOMESTIC POLICY FOREIGN POLICY UKRAINE RUSSIA MINERALS RARE EARTH ELEMENTS DONALD TRUMP VLADIMIR PUTIN US-UKRAINE RELATIONS
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