What is known about the rare earth deal between Ukraine and the United States?

Ukraine has agreed to terms of a minerals deal with the United States, a senior Ukrainian official told Agence France-Presse . Few details, however, have been leaked about its contents. Donald Trump had demanded $500 billion in compensation for U.S. military aid, but ultimately backed out, according to the Financial Times . However, no explicit security guarantees are mentioned in the draft deal revealed by the British daily, a major demand from Kiev. “The minerals deal is only part of the picture. We have heard repeatedly from the U.S. administration that it is part of a bigger picture,” said Olha Stefanychyna , Ukraine’s deputy prime minister.

Concretely, a fund will be created. The share held by Washington and kyiv is not disclosed, but Ukraine will have to pay into it 50% of the revenues generated by the monetization of natural resources, including oil, gas and related infrastructure. The revenues from this fund will be reinvested in projects in Ukraine. Existing assets such as the state-owned hydrocarbon companies Naftogaz and Ukrnafta will be excluded. Several details still need to be clarified: American participation in this fund, the agreement on joint properties, etc.

Donald Trump, speaking to reporters in the Oval Office, explained Tuesday night that Ukraine, in exchange for the deal, would receive "$350 billion, a lot of military equipment and the right to continue fighting." "Ukraine is very brave, has good soldiers, but without the United States, its money and military equipment, this war would have ended quickly," he added.

A first agreement had been rejected by Volodymyr Zelensky last week. The United States was to control 100% of a fund dedicated to the reconstruction of Ukraine which would be replenished by Kiev at 50% thanks to the revenues from the extraction of minerals. But these conditions were deemed unacceptable and refused. Donald Trump then called Volodymyr Zelensky a "dictator" . Finally the negotiations seem to have resulted in this agreement, which could be signed Friday during a visit of the Ukrainian president to the United States.

5% of the world's mineral resources are concentrated in Ukraine, but not all of them are exploitable. Especially since some of them are located in the territories occupied by Russia. In a work published in 2023 by the French Bureau of Geological and Mining Research (BRGM), geologists have inventoried more than a hundred resources, including iron, manganese and uranium. In 2022, the country was the world's 10th largest producer of iron, according to World Mining Data.