Ukraines Minerals: Trump's price for military support

Ukraines Minerals: Trump's price for military support

President Donald Trump has stated that in exchange for future military support that Ukraine needs to defend itself against the aggression of Russia, he wants access to the mineral deposits of Ukraine. This statement underlines Trump's transactional approach to the war in Ukraine, but was not entirely unexpected. The United States and other western countries have long kept an eye on the mineral wealth of Ukraine.

Trump's demands and military support

"We invest hundreds of billions of dollars. You have great rare earths. I want the security of these recycling materials and you are ready to do this," said Trump in a conversation with reporters in the Oval Office on Monday, but without specifying whether Ukraine has made any concessions. Before that, he had indicated that any future help should be granted as a loan and would be bound to negotiations between Ukraine and Russia.

past and compare with bidges

Under the former US President Joe Biden, the US government of Ukraine had sent a total of $ 65.9 billion of military support since the beginning of the comprehensive invasion of Russia in February 2022. Biden emphasized that this help was necessary because Ukraine's victory is of crucial importance for the own security of America. Trump, on the other hand, made it clear that he does not believe that the United States should continue to provide support without receiving anything in return.

cooperation between the USA and Ukraine

Although Trump did not provide any details of what he wanted from Kiev, an agreement to deepen the cooperation between the USA and Ukraine in the area of ​​minerals was prepared months before taking office. A memorandum of understanding developed last year under the bid administration provided for the United States that the United States is promoting investment opportunities in the mining projects of Ukraine for American companies, while Kiev creates economic incentives and implements good business and environmental practices.

strategic resources and expansion of cooperation

Ukraine already has a similar agreement with the European Union, which was signed in 2021. Adam Mycyk, partner in the Kiev office of the global law firm Denton, noticed that the goal of the deal - the securing of critical mineral care from Ukraine - remains unchanged, but Trump's approach seems more transaction. "It remains to be seen which form such an agreement could accept, but it would be in the best interest of Ukraine for its post -war recovery and long -term economic perspectives, the processing and value creation of all minerals in Ukrainian companies to maximize as far as possible," Mycyk told CNN.

relevance of mineral deposits for Ukraine

The Ukrainian government has not yet responded to Trump's comments, but has argued in the past that the mineral deposits are one of the reasons why the West should support Ukraine - to prevent these strategically important resources falling into Russian hands. President Wolodymyr Selenskyj has underlined that future investments in the country's natural resources are a decisive part of his "victory plan" through his western allies.

opportunities for the US economy and Ukraine

Nataliya Katser-Buchkovska, co-founder of the Ukrainian fund for sustainable investments, says that an agreement that brings US investments to the Ukraine mining sector would be beneficial for both sides. The United States is largely dependent on imports for the required minerals, many of which come from China. According to the United States Geological Survey, the US economy is completely dependent on imports at 12 of the 50 minerals classified as critically classified and more than 50 % in another 16.

global dominance of Chinas

Although Trump used the term "rare earth", it is unclear whether he concretely meant these special minerals. Ukraine has some of the world's largest occurrences of graphite, lithium, titanium, beryllium and uranium, all of which are classified by the USA as critical minerals. Some of these occurrences are in areas that are currently under Russian occupation.

China has long dominated the global production of rare earths and other strategically important materials. According to the Center for Strategic and International Studies (CSIS), China is responsible for almost 90 % of global processing of rare earths. In addition, China is also the largest producer of graphite and titanium as well as an important processor of lithium.

conclusion on the strategic importance of the minerals

The latest trade disputes between Washington and Beijing make it all the more important for the USA to seek alternative suppliers. The economic measures that China announced in response to Trump's new tariffs include export controls for more than two dozen metal products and related technologies. Even if the most crucial materials are not covered, this step shows that China is willing to use its mineral wealth as a means of pressure in trade conflicts.

Mycyk added that the demand for these critical materials is expected to increase due to the global transition to electric vehicles and renewable energy technologies. "The occurrences in Ukraine are therefore of considerable importance and offer a diversification of dominant producers such as China. Keeping control of these resources is crucial for maintaining the economic sovereignty of Ukraine," he said.