US President Donald Trump has expressed a desire to gain access to Ukraine‘s mineral resources in exchange for future military support that Kyiv requires to continue its defense against Russian aggression.
This statement underscores Trump’s transactional perspective regarding the conflict in Ukraine, a viewpoint that has been anticipated. The United States and other Western nations have long been interested in Ukraine’s mineral wealth.
“We’re investing hundreds of billions of dollars. They possess significant rare earth elements. I want assurance regarding these rare earths, and they are open to that,” Trump stated to reporters in the Oval Office on Monday, though he did not clarify any agreements made by Ukraine.
Previously, he has indicated that any forthcoming aid should be structured as a loan and contingent upon Ukraine’s negotiations with Russia.
During the administration of former US President Joe Biden, the US provided Ukraine with $65.9 billion in military aid following Russia’s full-scale invasion in February 2022.
Biden maintained that this assistance was crucial, as Ukraine’s success was vital to the security of the United States. In contrast, Trump has made it clear that he believes the US should not continue to offer support without receiving something in return.
Trump did not specify his expectations from Kyiv; however, a framework for enhanced cooperation between the US and Ukraine regarding mineral resources had been under discussion for several months prior to his inauguration in January.
A memorandum of understanding drafted during the Biden administration last year indicated that the US would encourage American companies to invest in Ukraine’s mining initiatives, contingent upon Kyiv establishing economic incentives and adhering to sound business and environmental standards.
Ukraine has already entered into a similar agreement with the European Union, which was signed in 2021.
Adam Mycyk, a partner at the global law firm Dentons in Kyiv, noted that while the goal of the agreement—securing essential mineral supplies from Ukraine—remains consistent, Trump’s strategy appears to be more transactional in nature.
“It is yet to be determined what form such an agreement might take, but it would be advantageous for Ukraine’s post-war recovery and long-term economic viability to maximize the processing and value addition of any extracted minerals within Ukraine by local companies,” Mycyk stated.
Kyiv has not yet addressed Trump’s remarks, but the Ukrainian government has previously argued that its mineral resources are a key reason for Western support—aimed at preventing these strategically vital assets from coming under Russian control.
Ukrainian President Volodymyr Zelensky has highlighted the potential for future investments in the nation’s natural resources from Western allies as a central element of his “Victory plan.”
Zelensky stated, “The critical resource deposits in Ukraine, along with the country’s significant energy and food production capabilities, represent key targets for the Russian Federation in this conflict. This situation also presents us with an opportunity for development,” during a statement regarding the plan in October.
Nataliya Katser-Buchkovska, co-founder of the Ukrainian Sustainable Investment Fund, emphasized that a partnership facilitating US investment in Ukraine’s mining sector would be advantageous for both parties.
The United States relies heavily on imports for essential minerals, with a significant portion sourced from China. According to the United States Geological Survey, the US is completely reliant on imports for 12 out of 50 critical minerals and is over 50% dependent on imports for an additional 16.
In contrast, Ukraine possesses deposits of 22 of these 50 critical materials, as reported by the Ukrainian government.
Katser-Buchkovska remarked, “This initiative is not only vital for Ukraine’s economic recovery post-conflict but also provides the US with an opportunity to resolve global supply chain challenges.” She previously served in the Ukrainian Parliament from 2014 to 2019 and led a parliamentary committee focused on energy security and transition.
China’s global influence
While former President Trump referred to “rare earths,” it remains uncertain whether he specifically meant the rare earth minerals, which consist of 17 elements found in the earth’s core, known for their magnetic and conductive properties essential for electronics, clean energy technologies, and certain weapon systems.
China has historically been the leading force in the global production of rare earth minerals and other materials of strategic importance. According to the Center for Strategic and International Studies (CSIS), it accounts for nearly 90% of the worldwide processing of these minerals. Additionally, China stands as the largest producer of graphite and titanium and plays a significant role in lithium processing.
The recent trade tensions between Washington and Beijing underscore the necessity for the United States to seek alternative sources for these materials.
In response to Trump’s new tariffs, China announced economic measures on Tuesday that include export controls on over two dozen metal products and associated technologies. Although these controls do not target the most essential materials required by the US, they signal China’s willingness to leverage its mineral wealth in trade negotiations.
Mycyk noted that the demand for these essential materials is projected to rise sharply due to the global shift towards electric vehicles and renewable energy technologies.
He emphasized that Ukraine’s mineral deposits hold global significance, providing an opportunity to diversify away from dominant producers like China. Maintaining control over these resources is vital for Ukraine’s economic sovereignty.
Discover more from Defence Talks | Defense News Hub, Military Updates, Security Insights
Subscribe to get the latest posts sent to your email.
