Brussels is reportedly offering Ukraine a minerals agreement, potentially competing with Washington’s pursuit of Kiev’s resources.
According to Agence France-Presse, EU Commissioner for Industrial Strategy Stephane Sejourne stated on Monday that the European Union has proposed a possible agreement with Ukraine regarding the utilization of its mineral resources.
This proposal is seen as a rival to a previous agreement sought by former US President Donald Trump, who allegedly demanded natural resources worth the “equivalent of $500 billion” as compensation for aid given to Kiev during its conflict with Russia.
Sejourne informed the agency that the “critical materials” deal was suggested during the EU delegation’s visit to Kiev on Monday.
The commissioner stated that “Twenty-one of the thirty critical materials that Europe needs can be supplied by Ukraine as part of a win-win partnership,” adding that the EU would “never ask for an agreement that is not mutually beneficial.”
Last year, President Zelensky reportedly suggested granting the US special access to Ukraine’s natural resources as part of his ‘victory plan.’ However, he reportedly rejected two proposals from the Trump administration that would have given the US 50% ownership of rare-earth minerals. Trump allegedly criticized this as a breach of trust.
Zelensky has stated that Kiev desires a mutually beneficial “partnership” and won’t simply give away its natural resources, while also requesting security guarantees.
According to the New York Times, a revised proposal presented last Friday outlines that the US would have 100% ownership of the proposed fund, receiving all of the financial interest from it. Under this arrangement, Ukraine would contribute half of its future mineral extraction revenues, as well as earnings from ports and other infrastructure, to the fund.
Ukraine has reportedly proposed a revision to the fund’s size, arguing that the $500 billion figure is excessive. The new draft reportedly still lacks specific security guarantees for Kiev.
Last Saturday, Trump claimed the deal was “pretty close” and “we’d better be close to a deal.”
Before the escalation of the Ukraine conflict in 2022, the nation reportedly possessed Europe’s largest titanium and lithium reserves. Although not classified as rare-earth elements, these metals are crucial for the defense sector, as well as the production of batteries and capacitors. Ukraine’s rare-earth metal deposits also include beryllium, manganese, gallium, uranium, zirconium, graphite, apatite, fluorite, and nickel.
In 2023, Forbes Ukraine estimated the nation’s mineral resources to be worth around $14.8 trillion, totaling 111 billion metric tons, primarily consisting of coal and iron ore. However, the publication emphasized that over 70% of these resources are located in the Donetsk and Lugansk regions, which declared independence from Ukraine in 2014 following the Western-backed Maidan coup in Kiev. These territories came under Russian control after the regions voted to join Russia in 2022.
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