Ukraine announces minerals-for-arms deal with US

Ukraine on Wednesday announced that it has reached a framework agreement with the United States on joint exploitation of its natural resources in return for arms to fight warring Russians.

The deal offers the United States partnership in the development of Ukraine’s natural resources, including rare earths, critical minerals, oil and gas.

Ukraine has deposits of 22 of the 34 critical minerals used in industrial and construction materials and ferroalloys as well as precious and non-ferrous metals, and some rare earth elements.

According to the State Geological Service, Ukraine has one of the largest confirmed reserves, estimated at 500,000 tonnes, of lithium, which is equivalent to 1-2 per cent of global reserves.

Ukraine also has a six per cent share of global graphite reserves, which is the largest metal by volume in lithium ion batteries, and finds use in applications from nuclear reactors to pencils. 

Ukrainian President Volodymyr Zelenskiy sees the deal as vital to placate US President Donald Trump, who had earlier sided with Russia in the ongoing war with Ukraine.

According to the agreement, Ukraine would hand over a whole lot of mineral deposits, including iron ore, graphite, rare earths and other minerals like lithium, uranium and manganese to the United States for joint exploration. Kyiv would hand over some revenue from its mineral resources to a fund jointly controlled by the US. However, Kyiv is yet to ensure US security guarantees in return.

US President Donald Trump also acknowledged that Volodymyr Zelenskiy would be visiting Washington on Friday to sign an agreement on minerals.

The Ukrainian leader, however, insisted that the success of the deal would hinge on the US taking up the issue of continued support in its war against Russian occupation.

Ukrainian Prime Minister Denis Shmyhal also said the framework agreement is “preliminary”.

US-Russia talks on ending the war that have so far excluded Kyiv were expected to continue on Thursday. But Zelenskiy is desperate to get the United States aligned with its western partners to deter Russian aggression in the future.