Ukraine and the US have finally signed a minerals deal. What does it include?

KYIV Ukraine AP After months of tense negotiations the U S and Ukraine signed a deal that is expected to give Washington access to the country s critical minerals and other natural tools an agreement Kyiv hopes will secure long-term endorsement for its defense against Russia According to Ukrainian representatives the version of the deal signed Wednesday is far more beneficial to Ukraine than previous versions which they revealed reduced Kyiv to a junior partner and gave Washington unprecedented rights to the country s tools The deal itself has not yet been made society but the Financial market Ministry and the prime minister s office have offered specific details The agreement which the Ukrainian parliament must ratify would establish a reconstruction fund for Ukraine that Ukrainian officers hope will be a car to ensure future American military assistance A previous agreement was nearly signed before being derailed in a tense Oval Office meeting involving U S President Donald Trump U S Vice President JD Vance and Ukrainian President Volodymyr Zelenskyy We have formed a version of the agreement that provides mutually beneficial conditions for both countries This is an agreement in which the United States notes its commitment to promoting long-term peace in Ukraine and recognizes the contribution that Ukraine has made to global prevention by giving up its nuclear arsenal Ukrainian Economic system Minister Yulia Svyrydenko mentioned in a post on Facebook The signing comes during what U S Secretary of State Marco Rubio revealed would be a very critical week for U S -led efforts to end the war that appear to have stalled Ukraine sees the deal as a way to ensure that its biggest and the greater part consequential ally stays engaged and doesn t freeze military backing which has been key in its -year-old fight against Russia s full-scale invasion This agreement signals clearly to Russia that the Trump administration is committed to a peace process centered on a free sovereign and prosperous Ukraine over the long term Treasury Secretary Scott Bessent commented in a message Here is a look at the deal What does the deal include The deal covers minerals including rare earth elements but also other valuable materials including oil and natural gas according to details distributed by Ukrainian functionaries It does not include support that are already a source of revenue for the Ukrainian state In other words any profits under the deal are dependent on the success of new investments While Trump has repeatedly expressed interest in Ukraine s rare earth elements it unclear what other minerals might be part of the deal Earlier this year Andrii Yermak the head of Ukraine s presidential office mentioned it could include lithium titanium or uranium The agreement ensures full ownership of the tools remains with Ukraine according to Ukrainian leaders The state will determine where and what can be extracted It also does not refer to any debt obligations for Ukraine the personnel have reported meaning profits from the fund will not go toward the paying the U S back for its previous assistance What are rare earth elements They are a group of elements that are essential to various kinds of consumer machinery including cellphones hard drives and electric and hybrid vehicles China is the world s largest producer of rare earth elements and both the U S and Europe have sought to reduce their dependence on Beijing Trump s chief geopolitical adversary How will the fund work The agreement establishes a reconstruction capital fund and both the U S and Ukraine will have an equal say in its management according to Svyrydenko The fund will be supported by the U S regime through the U S International Improvement Finance Corporation agency which Ukraine hopes will attract stake and device from American and European countries Ukraine is expected to contribute of all future profits from government-owned natural tools into the fund The United States will also contribute in the form of direct funds and equipment including badly needed air defense systems and other military aid Contributions to the fund will be reinvested in projects related to mining oil and gas as well as infrastructure No profits will not be taken from the fund for the first years Svyrydenko stated Trump administration personnel initially pushed for a deal in which Washington would receive billion in profits from exploited minerals as compensation for its wartime promotion But Zelenskyy rejected the offer saying he would not sign off on an agreement that will be paid off by generations of Ukrainians What is the state of Ukraine s minerals industry Ukraine s rare earth elements are largely untapped because of state policies regulating the industry a lack of good information about deposits and the war The industry s prospective is unclear since geological material is thin because mineral reserves are scattered across Ukraine and existing studies are considered largely inadequate according to businessmen and analysts In general however the outlook for Ukrainian natural support is promising The country s reserves of titanium a key component for the aerospace diagnostic and automotive industries are considered to be among Europe s largest Ukraine also holds a few of Europe s largest known reserves of lithium which is required to produce batteries ceramics and glass In the Ukrainian mineral industry accounted for of the country s gross domestic product and of exports An estimated of Ukraine s metallic mineral tools are inaccessible because of Russian occupation according to evidence from We Build Ukraine a Kyiv-based think tank Ukraine has argued that it s in Trump s interest to develop the remainder before Russian advances capture more Source