Rare earth metals are not the only thing: what Ukraine can interest Washington in
19 February 2025 20:07
The agricultural sector, defense, and energy are the areas in which Ukraine can really interest the United States. This opinion was expressed by Ukraine’s Ambassador to the United States Oksana Markarova on February 19 during a panel discussion “Ukraine is changing the world. Dialogues on Opportunities,” [ komersant] reports.
The agricultural sector
According to Markarova, this includes everything related to agriculture: seeds, fertilizers, machinery, and joint opportunities in these sectors. After all, even during the war, Ukraine continues to feed more than 400 million people around the world. However, in order to become a profitable area for the United States in economic terms, the Ukrainian agricultural sector now needs additional investment.
Defense sector
A number of American companies are already actively cooperating with Ukrainian companies, startups, and innovators. At a time when there is a shortage of weapons, Ukrainian maritime drones and Ukrainian developments have proven to be indispensable.
Energy sector
Ukraine was exporting electricity before Russia destroyed half of its generation.
“Thanks to storage facilities, energy production, storage, and transportation projects, Ukraine has the potential to become one of the largest energy hubs in Europe,” Markarova said.
Minerals and minerals
“This is what is being talked about the most. Ukraine has large reserves of minerals and minerals. 117 out of 120 materials used in various industries are found in Ukraine. 22 of the materials recognized as critical by the U.S. Department of Energy are also available in Ukraine,” the Ukrainian Ambassador to the United States emphasized.
Agreement between Ukraine and the United States on rare earth metals: details, Reasons for Rejection and Prospects
In February 2025, the administration of US President Donald Trump offered Ukraine a deal under which Washington would gain access to 50% of Ukraine’s future rare earth metal reserves in exchange for military and economic assistance. However, Ukrainian President Volodymyr Zelenskyy rejected the deal, calling it unfair and unreasonable in a time of war.
Details of the US proposal
According to White House sources, as part of the deal, the United States offered to provide Ukraine with financial and military support in exchange for exclusive access to significant deposits of lithium, graphite, cobalt, and titanium, which are essential for the production of batteries, semiconductors, and military technologies.
“The United States is ready to support Ukraine not only with weapons, but also with investments that will help restore its economy. Access to Ukrainian minerals is important for the development of the US defense and high-tech sectors,” said one official close to the talks.
However, Ukrainian officials said that the deal lacked specific security guarantees, making it economically beneficial for the US but politically and strategically risky for Ukraine.
Reasons for Ukraine’s refusal
Volodymyr Zelenskyy rejected the offer, emphasizing that the agreement did not include any specific mechanisms to protect Ukraine from Russian aggression.
“I cannot sell Ukraine,” Zelensky said in an interview with Reuters, explaining his position.
The main reasons for Ukraine’s refusal:
- lack of security guarantees. The agreement provided for economic benefits, but did not contain a legally binding commitment by the United States to protect Ukraine;
- risk of exploitation. Ukraine did not want to turn into a raw material colony by unilaterally giving away half of its strategic reserves of rare earth metals;
- lack of transparency. The US proposal did not specify clear mechanisms for controlling the extraction and distribution of resources.
US position and economic motivation
The Trump administration views access to Ukrainian minerals as a key element of its energy independence strategy. In recent years, the United States has been actively reducing its dependence on China for lithium, titanium, and other critical elements.
According to the U.S. Geological Survey, Ukraine has some of the largest titanium reserves in the world, and its lithium deposits could become an important alternative to Chinese control over this resource.
Ukraine’s response: an alternative project
After Ukraine’s refusal, its government developed a revised version of the agreement, which was submitted to Washington.
The main terms of the new proposal:
- The United States can invest in production, but Ukraine will retain control over the resources;
- long-term contracts for the supply of rare earth metals will be tied to defense cooperation and investment;
- security guarantees to protect the Ukrainian economy and territories from possible Russian attacks on the mining infrastructure.
The future of the agreement: is a compromise possible?
Negotiations are currently ongoing. The United States is ready to revise the terms of the agreement, but expects Ukraine to provide more supply guarantees.
Possible scenarios:
- Reaching a compromise: Ukraine retains control but signs long-term contracts with American companies.
- The US will offer military guarantees – the agreement may be revised to include security conditions.
- Ukraine will involve other partners – if negotiations with the US reach a deadlock, Ukraine may turn to Europe or Japan.
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