US, Ukraine reach minerals deal

The United States and Ukraine have reached terms on a critical minerals deal, media outlets including the Financial Times reported on Tuesday, in a move the Trump administration regards as crucial to brokering a ceasefire with Russia.

President Volodymyr Zelenskiy could sign the deal as early as Friday in Washington, the Associated Press reported, according to one of three unnamed senior Ukrainian officials who said the framework is ready. They spoke on condition of anonymity because they weren’t authorized to speak publicly. 

Both sides have been locked in negotiations since Ukraine rejected the initial offer the U.S. presented earlier this month. Zelenskiy has repeatedly stated that guaranteed U.S. military support must be part of any deal. A breakthrough was made this past weekend when the U.S. reduced its demand of $500 billion worth of critical mineral resources as repayment for military aid.

$10 trillion

Various reports have suggested that Ukraine has upwards of $10 trillion in mineral deposits, including those containing rare earth elements that are essential to defence and other high-tech industries. However, these deposits have yet to be internationally recognized as economically viable.

While details of the agreement are undisclosed, it’s expected that the parties will jointly develop these minerals on a 50/50 basis.

On the U.S. side, a deal represents a way for President Donald Trump to encourage buy-in from his supporters for continued backing for Ukraine, which relies on U.S. and European allies for weapons and ammunition.

Justin Logan, director of defence and foreign policy studies at the Cato institute, told Bloomberg that the deal was about Trump being able to sell a political win to the nation and for Zelenskiy about deescalating tensions with the U.S.