Ukraine War: Ukraine taps its mineral resources for US help

Ukraine gives the United States access to valuable mineral resources in order to keep the superpower as an ally against Russian aggression. A framework agreement is to be signed today when US President Donald Trump receives the Ukrainian head of state Wolodymyr Selenskyj in Washington.

The agreement was negotiated for weeks and argued about the possible sale of the war -plagued Ukraine. The result is a political declaration of intent. However, the path until the actual use of the raw materials is still far.

What exactly is signed in Washington?

The eleven points of comprehensive framework agreements provide for the creation of a reconstruction for Ukraine. In detail, the paper only regulates that Ukraine should deposit 50 percent of all income from future raw material projects into the fund. This applies to mineral deposits, hydrocarbons such as oil and natural gas as well as proceeds from the use of infrastructure such as ports or liquid gas minals. Rare earths are not mentioned separately in the agreement.

Security guarantees for Ukraine are only formulated in the document as a goal that Washington wants to support. Concrete financial details and obligations should be regulated in a contract that is still to be worked out.

What’s next with the agreement?

As far as is known, the actual contract for the fund has not yet been drawn up. The work on it can take months. The signed contract would also have to be ratified by parliament in Ukraine. Selenskyj can no longer rely on a stable majority. Discussions about a contract perceived as a sell -off could last. A quick entry into force is therefore less likely.

What raw materials does Ukraine have and when is the first projects to be expected?

The total value of the mineral resources was estimated by the Ukrainian branch of the “Forbes” magazine to the equivalent of a little more than 14 trillion euros. Over 60 percent of them are eliminated on hard coal, but it is not very interesting for the United States. Another 14 percent are iron ore, while other raw materials are less than 5 percent. Many exploration data still come from the Soviet period. There is no information about the occurrence of the rare earths mentioned by Trump.

The deposits of rare metals, which the state geological service lists, are currently almost 40 percent below Russian control or near the front. According to current knowledge, Ukraine has the largest occurrence of lithium across Europe that is required for batteries. “Forbes” puts the known supplies at 33 million tons. However, two deposits came under Moscow after the Russian invasion.

Germanium is important for electronics components, of which 41,000 tons are suspected in Ukrainian earth. The United States could also reduce its dependence on China with Ukrainian Titan, which is used in aircraft construction and armor goods. With the ninth largest supplies worldwide, Ukraine can cover world production for 15 years.

What does Ukraine promise from the agreement?

Selenskyj has brought his country’s valuable raw materials into play earlier. He also mentioned her in his victory plan from autumn 2024 and thus appealed to Trump, who likes to boast as a shop.

In fact, Trump bite, but at intolerable conditions. US demands were rumored after $ 500 billion, after retroactive payment for US military aids since 2022-two and a half times the Ukrainian economic output before the war.

These points are no longer included in the agreement. According to media reports, Ukraine also achieved that security guarantees are at least mentioned.

Because that’s what it is all about: Despite the extent between Trump and Kremlin boss Vladimir Putin, Ukraine wants to keep the United States as an ally, even if Trump excludes Ukraine’s admission to NATO. With the agreement in the back, Selenskyj in Washington can ask the question of arms deliveries.

What does Trump want to achieve?

The US President needs quick success. With his announcement, he failed to end the Russian-Ukrainian War, which has been going on since 2022. The agreement offers him the opportunity to present a deal, even if it has no concrete content so far. When investments are really made and possibly dividends from the fund to be created to the United States will flow back in secondary importance.

So far, it is unanswered where the money for investments should come from if it does not come from tax funds. Trump would have to offer investors attractive conditions. Above all, this includes permanent peace in Ukraine.

Who is still interested in the Ukrainian raw materials?

The EU already agreed with Ukraine a strategic raw material partnership in 2021, but it has so far remained an unconcrete. In Brussels it is feared that a disadvantageous deal with the USA could weaken the financial situation of Ukraine. That would make it difficult to award international loans and also the conversations for an EU accession. And last but not least France, according to Defense Minister Sébastien, Lecornu also speaks to Ukraine to get raw materials for his armaments industry.