US, Ukraine close to signing minerals deal – media
25 February 2025 10:09
The United States and Ukraine are close to signing a multibillion-dollar minerals deal that would create a joint Reconstruction Investment Fund. Military commitments by the United States are not included in the agreement. This is reported by Axios, which has access to the latest draft of the document, "Komersant Ukrainian" reports.
According to the draft, the United States and Ukraine are in the final stages of concluding a minerals agreement worth hundreds of billions of dollars. In the document, the US expresses its desire to support Ukraine as a “free, sovereign, and secure” state.
The publication emphasizes that although this is the latest version of the document, it is still subject to change. The centerpiece of the agreement is the creation of a Reconstruction Investment Fund to be jointly managed by the United States and Ukraine.
“The United States government intends to provide a long-term financial commitment to the development of a stable and economically prosperous Ukraine,”
– Axios quotes from the project.
The fund is designed to invest in Ukrainian projects and attract additional investment for development, particularly in the areas of mining and port infrastructure. It is assumed that the United States will partially compensate for its costs of “protecting, reconstructing, and restoring” Ukraine’s pre-war GDP.
Under the terms of the project, Ukraine is to contribute $500 billion to the fund, with Ukraine’s contributions being twice as large as the US, although the document does not require the US to pay this amount. According to the agreement, 50% of Ukraine’s revenues from “extractive materials” (minerals, oil, gas) minus operating expenses will be allocated to the fund.
According to the publication, the text also contains provisions for projects in the territories “temporarily occupied by the Russian Federation in the event of the de-occupation of such territories.”
To recap, in exchange for the military support provided, US President Donald Trump demanded $500 billion worth of rare earth metals from Ukraine. He said that the US should have access to Ukraine’s natural resources, regardless of whether Kyiv manages to reach a peace agreement with Russia.
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What is known about rare earth metals in Ukraine?
Rare earth metals are a group of 17 chemical elements that include lanthanides, as well as scandium and yttrium. They have unique physical and chemical properties that make them indispensable in many high-tech industries, such as electronics, green energy, medicine, and optics. In particular, rare earth elements are used in the production of smartphones, computers, medical equipment, lasers, and to create strong and lightweight alloys.
Ukraine has significant reserves of rare earth metals and other critical resources. According to MiningWorld, the country has unique deposits of beryllium, zirconium, tantalum, and a complex of phosphorus rare earth and rare metal ores. Ukraine’s proven lithium reserves are the largest in Europe. In addition, Ukraine is one of the richest European countries in terms of rare-metal reserves, and the value of these deposits is estimated at up to USD 12 trillion.
Despite its considerable potential, Ukraine has not yet started mining rare earth metals. The country imports about 100 tons of rare earth metals per year.
In total, several hundred points of rare earth metal concentrations have been identified on the territory of Ukraine that require further study. Most of them are located within the Ukrainian Shield, which can be considered the largest rare earth metallogenic province in Europe.
Utilizing this potential can contribute to the country’s economic development and strengthen its position in the global high-tech market.
