**US and Ukraine Take Step Towards Historic Minerals Deal**
After weeks of uncertainty, the United States and Ukraine have officially taken the first step towards signing a landmark minerals deal. The agreement, which was first proposed by Ukrainian President Volodymyr Zelensky last year, aims to establish an investment fund for the reconstruction of Ukraine as part of an economic partnership.
**What’s in the Deal?**
The signed memorandum of intent published by the Ukrainian government states that the US and Ukraine intend to set up a reconstruction investment fund. While details are still emerging, previous leaks suggest that the deal has been extended beyond minerals to include control of Ukraine’s energy infrastructure, oil, and gas. The exact terms of the agreement remain unclear, with Economy Minister Yulia Svyrydenko stating that the text of the final agreement is still being worked on.
**A Security Guarantee?**
One of the key aspects of the deal is the potential inclusion of a security guarantee from Washington. Ukrainian President Zelensky has been pushing for a firm security commitment from the US throughout negotiations, but no such guarantee has yet been made. The signed memo does state that both countries desire a lasting peace in Ukraine.
**When Will it be Signed?**
Both countries aim to complete discussions by 26 April, with the goal of signing a final deal “as soon as possible.” However, US President Donald Trump has expressed hope that the deal will be signed sooner, by 24 April. The delay has been attributed to disagreements over the terms of the agreement and a heated exchange between Trump and Zelensky in February.
**Ukraine’s Mineral Riches**
Ukraine estimates that about 5% of the world’s “critical raw materials” are located within its borders. This includes significant deposits of graphite, titanium, lithium, and rare earth metals. However, some of these resources have been seized by Russia, leaving approximately $350bn worth of minerals in occupied territories.
**Russia’s Reaction**
Before the deal was supposed to be signed in February, Russian President Vladimir Putin told state TV that Russia is ready to “offer” resources to American partners in joint projects, including mining in Russia’s “new territories.” Putin downplayed the potential US-Ukraine deal on rare minerals, claiming that Russia has significantly more resources of this kind than Ukraine.
**Challenges Ahead**
The deal faces several challenges, including unexploded mines contaminating a quarter of Ukraine’s land mass. Additionally, it will be some time before anyone sees material benefits from the agreement, as resources must first be developed and extracted.
As the US and Ukraine move forward with the historic minerals deal, questions remain about the potential impact on global markets and the future of their economic partnership.
