Ahead of a planned conversation between Donald Trump and Vladimir Putin regarding the Ukraine conflict, Trump revealed he is close to an agreement with Ukraine aimed at developing its minerals sector. This deal could potentially supply the US with valuable rare earth elements crucial for various technologies. Initially proposed by Ukrainian President Volodymyr Zelenskyy last year, the agreement would bolster Ukraine’s negotiating position with Russia.
Andrii Yermak, Zelenskyy’s chief of staff, expressed enthusiasm for collaboration with the US, highlighting Ukraine’s untapped mineral potential. Trump suggested that a deal could entail a staggering US$500 billion in rare earth resources, which he believes is essential for continued US financial support to Ukraine.
Ukraine’s current mineral industry remains largely underdeveloped due to ongoing conflict and regulatory challenges. However, it possesses significant reserves of essential minerals such as lithium and titanium, with the European Commission recognising Ukraine’s potential to supply critical raw materials to strengthen the European economy.
As discussions progress, US Treasury Secretary Scott Bessent is set to meet with Zelenskyy to outline potential agreements. Concerns remain about security for US companies operating in Ukraine, and the necessary legislative and geological groundwork to formalise such a deal is still to be established.