Ukrainian minerals: Trump uses them as leverage for military aid

Ukrainian minerals: Trump uses them as leverage for military aid

US President Donald Trump has indicated he is demanding access to Ukraine's mineral deposits in exchange for future military aid that Kiev needs to continue to defend itself against Russian aggression. This remark illustrates Trump's transactional approach to the war in Ukraine, but it was not entirely unexpected. The United States and other Western countries have long had their eye on Ukraine's mineral riches.

Trump's conditions for military aid

"We're investing hundreds of billions of dollars. They have great rare earths. And I want security for the rare earths, and they're willing to do that," Trump said in his office on Monday. However, he did not say specifically what Ukraine had agreed to. He had previously indicated that future support would be provided as loans and would be tied to Ukraine's negotiations with Russia.

Comparing military aid under Biden and Trump

Under former US President Joe Biden, Ukraine received $65.9 billion in military aid since Russia's full-scale invasion began in February 2022. Biden argued that the aid was necessary because Ukraine's victory was crucial to the US's own security. Trump, on the other hand, made it clear that he believes the US should no longer provide aid without getting something in return.

Possible cooperation in mining

Although Trump gave no specific details about what he wants from Kiev, an agreement for deeper US-Ukraine cooperation in minerals was in the planning stages months before he took office in January. A memorandum of understanding drawn up last year under the Biden administration called for the U.S. to promote investment opportunities in Ukraine's mining projects for American companies. In return, Ukraine should create economic incentives and implement good business and environmental practices.

Ukrainian mineral deposits as a strategic strength

Ukraine already has a similar agreement with the European Union, signed in 2021. Adam Mycyk, partner in the Kiev office of global law firm Dentons, said the goal of the agreement - securing critical mineral supplies from Ukraine - remains unchanged. “It remains to be seen what form such an agreement might take, but it would be in Ukraine's best interests to maximize the processing and value creation of mined minerals by Ukrainian companies as much as possible,” Mycyk said.

Ukraine's response and strategic plans

Kiev has not yet responded to Trump's comments, but has argued in the past that the mineral deposits are one of the reasons the West should support Ukraine - to prevent these strategically important resources from falling into Russian hands. Ukrainian President Volodymyr Zelensky cited the possibility of future investments in the country's natural resources by Western allies as a crucial part of his "victory plan."

Opportunities for the energy supply and economy

Nataliya Katser-Buchkovska, co-founder of the Ukrainian Sustainable Investment Fund, said an agreement bringing US investment into Ukraine's mining sector would be mutually beneficial. The US relies largely on imports for the minerals it needs, many of which come from China. Of the 50 minerals classified as critical, the U.S. depended entirely on imports for 12 and over 50% for another 16, according to the United States Geological Survey.

China's global dominance in the minerals sector

China has long dominated global mineral production and is responsible for nearly 90% of global rare earth processing. In addition, China is the world's largest producer of graphite and titanium and a major processor of lithium. The recent trade conflict between Washington and Beijing makes it even more important for the US to look for alternative suppliers.

"Ukraine's reserves are thus globally significant and provide diversification from dominant producers such as China. It is crucial to keep these resources under Ukrainian control to preserve its economic sovereignty," Mycyk added.