Ukraine, US finalising rare earth deal amid concerns

Ukrainian President Volodymyr Zelenskyy will meet U.S. President Donald Trump in Washington on Friday to sign a major agreement. The deal focuses on Ukraine’s rare earth minerals, promising investment but raising concerns over economic sovereignty.

After months of negotiations, Ukrainian President Volodymyr Zelenskyy is expected to sign an agreement in Washington that would give US companies access to Ukraine’s lithium, titanium, and rare earth metals in exchange for investment and reconstruction funds.

Zelenskyy's Take on the Deal

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT:“This agreement could be part of future security guarantees. But I want to understand… an agreement is an agreement, but we need to understand the broader vision: what lies next for Ukraine, where we are in all of this.”

Shifting Focus Under Trump

Security remains a key controversy surrounding the agreement. Initially, the Biden administration advocated for a broader defense framework, but since Trump took office in January, negotiations have pivoted toward an economic focus. Trump, known for urging European allies to contribute more to Ukraine’s security, views this deal as a means to recoup substantial US military aid.

DONALD TRUMP, US PRESIDENT:“As you know, we are in for probably $350 billion, Europe is in for $100 billion. That's a big difference. We are in for probably three times as much. Yet it's very important to everybody. The previous administration put us in a very bad position, but we have been able to make a deal where we are going to get our money back. We'll get a lot of money in the future. I think that's appropriate. Because we have taxpayers that shouldn't be footing the bill.”

Economic Concerns in Kyiv

This statement has fueled concerns in Kyiv that Ukraine’s resources are being used as a repayment mechanism rather than as part of a long-term strategic partnership. Reports indicate the agreement includes provisions for a US-backed investment fund to aid Ukraine’s reconstruction, with Kyiv required to contribute half of future revenues from its mineral sector.

Background: Ukraine’s Resource Wealth

An estimated 5% of the world’s critical raw materials are within Ukraine’s borders—but a third of them are currently under Russian occupation.

Moscow’s control over these regions poses a strategic challenge. Estimates suggest that Russian forces occupy mineral reserves worth $350 billion, including vast lithium and titanium deposits in eastern Ukraine. Russia is reportedly exploring ways to develop these resources independently, potentially offering them to non-Western allies such as China and India.

Risks of Losing Leverage

If Ukraine hands over control of its remaining reserves to the United States, will it have enough leverage left to secure its own future? Many Ukrainians worry that committing too much to this deal could limit Kyiv’s long-term economic and geopolitical flexibility.

Protests have erupted in Kyiv, with activists demanding that Ukraine secure stronger defense assurances before finalizing the agreement.

ANABEL MORINA, ACTIVIST:"We should not rush into this. Right now, it feels like blackmail. This deal should only be signed after the war ends or when we have firm security guarantees."

ALLA ISKRA, PROTESTOR:"If there are security guarantees and Ukrainian people and troops agree to that, then I will happily agree too. And in this case, let America and Trump be prosperous."
European and Global Implications."

There are also concerns about how this deal aligns with broader Western strategies. The European Union has expressed interest in Ukraine’s mineral wealth as part of efforts to reduce reliance on China for critical raw materials. If Kyiv grants the US exclusive access, it could risk alienating potential European investors.

China, a dominant player in the global rare earths market, has controlled up to 70% of the world’s rare earth mining and 85% of refining capacity. With Ukraine emerging as a key alternative, this deal could further strain US-China relations.

For now, the final details of the agreement remain uncertain. While Zelenskyy is expected to sign the deal, questions persist over whether Ukraine has secured genuine security commitments or if this is simply a financial transaction that benefits Washington more than Kyiv.

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