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    Home»President Trump News»US-Ukraine minerals deal looks better for Kyiv than expected – but Trump is an unpredictable partner
    President Trump News

    US-Ukraine minerals deal looks better for Kyiv than expected – but Trump is an unpredictable partner

    preztrumpBy preztrumpMay 1, 2025No Comments6 Mins Read
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    The USA and Ukraine have lastly signed a long-awaited agreement on Ukraine’s postwar reconstruction – and, at first studying, the main points seem more favourable for Kyiv than many observers anticipated.

    On the core of the “financial partnership settlement” is the exploitation of Ukraine’s mineral wealth. Ukraine will get entry to US funding and expertise, and the US will finally get a share of the income. The remaining will finance the war-torn nation’s restoration if and when a peace settlement is signed with Russia.

    A number of points of this deal stand out as optimistic for Ukraine. In contrast to in previous drafts, the nation retains possession of its pure assets. All income are to be invested in Ukraine for ten years after the settlement comes into drive.

    Washington also can make its contribution within the type of new navy support, though it is going to be right down to the US president to determine whether or not or not to try this.

    Earlier within the negotiations, a serious sticking level was the demand from the US president, Donald Trump, that the settlement embrace compensation for previous US support to Ukraine, which he insisted amounted to US$350 billion (£260 billion). Many analysts estimate the determine is nearer to US$120 billion.

    Earlier than the deal was signed, Ukraine’s prime minister, Denys Shmyhal, said the deal would “not embrace help supplied earlier than its signing”. And the Ukrainian authorities announcement stated that the brand new settlement “focuses on additional, not previous US navy help”. However when the US treasury secretary, Scott Bessent, spoke to journalists, he described the deal as “compensation” for “the funding and the weapons”.


    Signal as much as obtain our weekly World Affairs Briefing newsletter from The Dialog UK. Each Thursday we’ll carry you knowledgeable evaluation of the massive tales in worldwide relations.


    Whether or not Bessent’s assertion represents political spin, or whether or not there may be nonetheless distance between Washington and Kyiv on this crucial level, stays to be seen. The formal textual content has not been launched, and plenty of particulars stay to be ironed out. Trump could be an erratic negotiator who’s liable to sudden modifications of path.

    Certainly, the signing of this settlement is simply the newest twist in a broader effort to carry the conflict in Ukraine to an finish – one which in all probability nonetheless has many surprises forward. Trump seems to be losing patience with what he views as Russia’s refusal to have interaction with the peace course of. Signing the deal could have been supposed as a warning to Moscow to get critical about ending the battle.

    The brand new settlement reportedly states that the US and Ukraine share a “long-term strategic alignment”. That’s a far cry from Trump’s rhetoric just a few months in the past, when he known as Ukraine’s president, Vlodomyr Zelensky, a “dictator”“ and blamed Kyiv for beginning the conflict with Russia. However given Trump’s modifications of temper, this settlement is unlikely to be the ultimate phrase on how he views the battle.

    Regardless of discuss of a long-term strategic alignment, one factor the deal doesn’t include is any specific safety ensures for Ukraine. However the White Home argues – and different observers hope – that US funding in Ukraine will give the US an implicit stake within the nation’s safety. That may deter Russia from attacking Ukraine once more, out of concern the US would act to guard its funding.

    An open cast mine in Ukraine.
    An ilmenite mine in Kirovohrad, central Ukraine. Ilmenite is the principle supply of titanium dioxide.
    AP Photograph/Efrem Lukatsky

    Nevertheless, as soon as we transfer from the realm of politics and safety to economics, a number of obvious flaws on this logic turn out to be obvious. All of them come down as to if the mineral wealth on the coronary heart of this settlement could be profitably exploited – and, certainly, whether or not it even exists.

    Is that this a game-changing deal?

    The American humorist Mark Twain is claimed to have once defined a mine as “a gap within the floor owned by a liar”. Assessing the exact scale of underground mineral deposits is notoriously tough – and never each deposit could be extracted in a worthwhile style.

    In Ukraine, the exploratory work has merely not been performed. Even the supposed measurement of the deposits, that are based mostly on old Soviet surveys performed in a superficial style, shouldn’t be sure.

    Most of the minerals that supposedly lie underneath Ukraine’s floor are so known as “uncommon earths”, that are crucial to hi-tech provide chains. However they’re additionally costly and time-consuming to take advantage of, requiring a large upfront funding which can finally be misplaced. Even in profitable instances, it typically takes over a decade to get manufacturing onstream.

    At present, there are few rare-earth tasks underneath growth wherever on the planet outdoors China – even in international locations that aren’t present (and probably future) conflict zones. Most of Ukraine’s supposed deposits lie in the east of the country in areas susceptible to Russian assault, making funding dangerous.

    All of this makes financial partnership settlement of uncertain long-term significance for the broader peace course of. The potential good points from it are too hypothetical to make a lot distinction inside a significant timescale. The deal is unlikely to generate a lot actual financial incentive for the US to defend Ukraine, and so is unlikely to turn out to be a brand new supply of navy help for Kyiv.

    For the Russian president, Vladimir Putin, the deal doesn’t change so much. Whereas it’d certainly be a sign that Trump is working out of persistence with Russia, it does little to vary the underlying realities of the battle.

    We are able to’t rule out the chance that Trump, as unpredictable as ever, would possibly make a extra significant dedication to Ukraine sooner or later, one which modifications the course of the conflict. However – at first look, definitely – this minerals deal shouldn’t be it.



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