Ukraine and the US Close to Signing Deal on Rare Earths
The US and Ukraine are close to signing a deal worth “hundreds of billions of dollars”, according to Axios. The draft document, seen by Axios, details a plan for the US to invest in Ukraine’s rare earth minerals.
The deal would see the US pay $500 billion for access to Ukraine’s natural resources, including critical minerals. This sum is much higher than the $100 billion provided as a grant by former President Joe Biden. The draft document does not include any security guarantees for Ukraine.
President Volodymyr Zelensky has refused to sign the deal so far, citing concerns over the lack of security guarantees and the high price tag. He also pointed out that the sum vastly outnumbers the $100 billion provided by former President Biden.
The US would express its desire to keep Ukraine “free, sovereign and secure” in the draft document. However, it does not provide for any military commitments from Washington. The deal includes establishing a joint Reconstruction Investment Fund with the US and Ukraine to invest in projects and attract investments.
The fund will also be used to reimburse part of the costs associated with defending, reconstructing, and returning Ukraine to its pre-war GDP levels. Provisions are also included for the territories currently under Russian occupation.
A Ukrainian official told Axios that the agreement could be signed as early as March 3. The document obtained by Axios is the latest version but may be subject to amendments.
US President Donald Trump previously reiterated his push for a deal between the US and Ukraine, arguing it would help Kyiv’s economy while ensuring Washington “recoups the tens of billions of dollars and military equipment sent to Ukraine”.
During a meeting with French President Emmanuel Macron at the White House, Trump said he may soon meet President Volodymyr Zelensky to sign the agreement. He also expects Zelensky to visit Washington “this week or next week”.
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