BLOOMBERG: Ukraine has agreed with the US on terms for mineral deal without any specific security guarantees

SOURCE: BLOOMBERG

Edited by the Greek Courier

Ukraine has reached an agreement with the United States to collaboratively develop its critical minerals, oil, and gas resources, according to sources familiar with the matter. The White House views this initiative as a preliminary step towards achieving a ceasefire with Russia. On Wednesday, Ukraine's Cabinet is expected to recommend that the deal be signed, as stated by these sources, who requested anonymity due to the private nature of the discussions. The White House has not yet responded to requests for comments.

President Donald Trump pressured Ukrainian President Volodymyr Zelenskiy to accept a deal first proposed by Treasury Secretary Scott Bessent in Kyiv earlier in February. However, Zelenskiy rejected the proposal, citing a lack of security guarantees.

The minerals agreement does not specify any particular security guarantees, according to sources. However, U.S. officials have stated that by forging economic ties with Ukraine, a de facto security shield would be provided. A more detailed agreement is expected to be developed in the future.

The agreement may also provide Trump with a means to garner support from his followers for ongoing assistance to Ukraine. This is especially relevant if Washington requires Congress to approve further aid for Ukraine as negotiations with Russia are prolonged. Ukraine continues to depend on the weapons and ammunition supplied by the U.S. and its European allies.

Trump has expressed a desire for the equivalent of $500 billion in rare earth elements, which are primarily used in high-strength magnets. However, despite reports suggesting there are $10 trillion worth of mineral deposits in Ukraine, the country does not possess any major rare earth reserves that are internationally recognized as economically viable.

In addition to rare earth elements, Ukraine has some commercial mines for critical minerals such as titanium and gallium. While these minerals are important, they are unlikely to generate the substantial profits that Trump anticipates. Even if Ukraine has economically viable deposits, the West faces a larger challenge. Most countries are required to send the rare earths they extract to China for processing, as China dominates the refining of these materials.