The White House and Ukraine are nearing a historic agreement that would grant the US access to Ukraine’s rare earth minerals, a crucial component in modern technology. This deal has been in the making despite initial reservations from Ukrainian President Volodymyr Zelenskyy regarding security guarantees.
The White House and Ukraine have made significant progress towards reaching an agreement that would provide the U.S. with access to Ukraine‘s rare earth minerals and strengthen their long-term relationship, according to a person familiar with the matter.
This development comes after ‘President Donald Trump and Ukraine President Volodymyr Zelenskyy traded sharp rhetoric this week about their differences over the matter.’ Zelenskyy had initially expressed reservations about signing off on a deal that would allow the U.S. access to his country’s rare earth minerals, citing concerns about security guarantees.
The United States and Ukraine have maintained diplomatic relations since 1992, following 'independence from the Soviet Union.'
In recent years, US-Ukraine ties have strengthened due to shared interests in security and economic cooperation.
The US has provided significant financial aid to Ukraine, totaling over $2 billion since 2014.
Additionally, the US has imposed sanctions on 'Russia' in response to its annexation of Crimea, supporting Ukraine's territorial integrity.
Bilateral trade between the two countries has also increased, with the US being one of Ukraine's largest trading partners.
Rare Earth Elements: A Crucial Component
Rare earth elements are essential to many kinds of consumer technology, including cellphones, hard drives, and electric and hybrid vehicles. The agreement would provide the U.S. with a vital source of these materials, which are currently in high demand due to their critical role in modern technology.
Rare earth metals are a group of 17 metallic elements with unique properties.
They are used in various high-tech applications, including electronics, renewable energy systems, and advanced ceramics.
These metals are found in small amounts in the earth's crust and are often extracted as byproducts of other mineral mining operations.
The most common rare earth metal is cerium, followed by lanthanum and neodymium.
Negotiations: A Complex Process
The negotiations between the two sides have been complex and challenging. Trump‘s special envoy to Ukraine and Russia, retired Lt. Gen. Keith Kellogg, visited Ukraine this week for three days of meetings with top-ranking Ukrainian officials, including ‘President Zelenskyy, Foreign Minister Andrii Sybiha, and Rada speaker Ruslan Stefanchuk.’
Despite the progress made, it is unclear whether the White House has offered Ukraine any security guarantees in the emerging deal. Earlier proposals had focused on using Kyiv‘s minerals as compensation for support already given to Ukraine by the Biden administration and as payment for future aid.
A Deal in Sight?
While the agreement is still not complete, both sides appear to be working towards a resolution. ‘President Zelenskyy said in his nightly address that Ukrainian and U.S. teams are working on a draft agreement between their governments.’ Trump‘s national security adviser, Mike Waltz, also expressed confidence that _’Zelenskyy would eventually accept the deal, stating ‘Here’s the bottom line: President Zelenskyy is going to sign that deal.”
The US-Ukraine agreement, also known as the Ukraine Freedom Support Act, was signed in 2014.
The agreement aims to strengthen bilateral relations between the two countries.
Key provisions include military aid, economic assistance, and support for Ukraine's EU integration efforts.
The agreement also calls for cooperation on counter-terrorism, cybersecurity, and energy security.
In 2022, the US provided $400 million in military aid to Ukraine, including funding for lethal defensive systems.
The agreement has been renewed annually since its inception.
