Ukraine Agrees to Rare Earth Minerals Cooperation Framework for US Support

KYIV, WEDNESDAY - After Russia offered rare earth minerals to the United States, Ukraine also agreed to an economic framework agreement, including access to Ukraine's rare earth minerals, with the U.S. Ukraine hopes that the agreement, which is expected to be signed as soon as Friday (28/2/2025), will provide future security guarantees from the U.S.

The latest development was conveyed by three senior Ukrainian officials who wished to remain anonymous, as reported by several news agencies on Wednesday (26/2/2025). Ukraine is preparing plans for Ukrainian President Volodymyr Zelenskyy's visit to the US to meet US President Donald Trump in Washington.

This economic agreement is said to provide an opportunity for Zelenskyy and Trump to discuss continued military aid for Ukraine. That is the reason why Ukraine decided to approve the agreement.

Trump was already aware of Zelenskyy's planned visit and had no objections if he wanted to sign the agreement with him. Trump considered this agreement to be very significant and potentially worth 1 trillion US dollars. Before signing, there were several technical details that still needed to be resolved.

However, the draft agreement did not include the Trump administration's proposal for Ukraine to provide the United States with $500 billion worth of rare earth minerals as compensation for its wartime assistance to Kyiv.

"American taxpayers will now get their money back. Biden is squandering money like cotton candy. We want to get that money back," said Trump.

When asked what Ukraine would get in return for the minerals deal, Trump mentioned $350 billion in funding as well as military equipment and the right to continue fighting.

When asked how long the US would continue to provide arms to Ukraine, Trump said it could continue for a while and perhaps until the US reaches a deal with Russia. But Trump again predicted the war could end quickly.

For the Ukraine-US economic deal, the plan is for the US and Ukraine to jointly develop Ukraine’s mineral wealth. The revenues will go to a “common fund for Ukraine and the US.” Ukraine will contribute 50 percent of the proceeds from the country’s natural resource wealth, including minerals, oil, and gas.

Ukraine has deposits of 22 of the 34 minerals identified by the European Union as critical. These include industrial and construction materials, ferroalloys (iron alloys with non-ferrous metals such as silicon, manganese, chromium, aluminum, or titanium), precious and non-ferrous metals (such as aluminum, magnesium, copper, zinc, nickel, lead, tin, gold, silver, and platinum), and some rare earth elements. Ukraine’s reserves of graphite, a key component in electric vehicle batteries and nuclear reactors, represent 20 percent of global resources.

A Ukrainian official said the deal had better investment terms. Ukraine gained favorable amendments and viewed the results as "positive." However, the deal did not include security guarantees.

On this point, it will be discussed when Zelenskyy and Trump meet. “There are general clauses that say America will invest in a sovereign, stable, prosperous Ukraine, that America will work for lasting peace, and that America supports efforts to ensure security,” one Ukrainian official said.

Zelenskyy has previously rejected Trump’s demand to give the US $500 billion in valuable minerals used in aerospace, electric vehicles and other technologies. That is well above the official figure of $60 billion in US military aid to Ukraine since the invasion. Ukrainian sources said the US had trimmed the $500 billion reference. “They removed all the clauses that didn’t suit us,” one Ukrainian source said.

Trump has changed U.S. foreign policy on the Ukraine-Russia war by opening dialogue with Russian President Vladimir Putin. The U.S. sided with Russia at the United Nations over its European allies to push a resolution calling for an end to the war without condemning Russia's invasion of Ukraine or defending Ukraine's territorial integrity.

Last week, Trump branded Ukraine's leader a "dictator" and called on him to "move quickly" to end the war. That came a day after Russian and U.S. officials held talks in Saudi Arabia without Ukraine. Zelenskyy has previously accused Trump of living in a Russian "disinformation chamber."

French President Emmanuel Macron met with Trump on Monday and briefed Zelenskyy on their talks. He will speak with other European leaders via video conference on Wednesday.

Speaking at the White House, Macron warned Trump that peace could not mean Ukraine “surrendering” and called for U.S. support for any possible European troop deployment aimed at preserving the peace deal.

Trump's shift in stance toward Russia has raised concerns it could end not only US support for Ukraine, but for all of Europe.

Macron also spoke by phone with British Prime Minister Keir Starmer on Tuesday. Starmer said the two praised Trump for “pushing hard for a lasting peace in Ukraine.”

Starmer, who will visit the White House, insisted that US "support" was vital to prevent Russia "launching another invasion in just a few years' time". (REUTERS/AFP/AP)