CNN
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Ukraine was able to narrow down more favorable terms from the US before signing the much-anticipated mineral contract on Wednesday.
The natural resources agreement was ultimately attacked Wednesday after weeks of tense negotiations.
Kiev ultimately convinced President Donald Trump to remove some of his important requests, but failed to make America’s security guarantee part of the contract.
Ukrainian officials have promoted the final agreement as an equal partnership between Kiev and Washington. This is a noticeable shift from some of the previous drafts that Ukrainian leader Voldymir Zelensky said he was asking to “sell my country.”
The signed deals seen by CNN actually appear to be in favor of Ukraine over some of the previous versions. This is what we know.
assistance: Importantly, the deal does not ask Kiev to reimburse the US for the aid it has already received, a key concession from Trump, which has long framed Ukrainian agreement to “repay” the US.
Washington initially requested a $500 billion share of Ukraine’s rare earths and other minerals in exchange for the aid it had already provided to Kiev. When Zelensky rejected the idea, Trump called him a “dictator.”
Instead, the agreement, inscribed on Wednesday, said future US military aid to Ukraine would count as part of US investment in a joint reconstruction investment fund that will be used to pour money into Ukraine’s natural resources.
Natural Resources: The deal gives the US priority over Ukraine’s mineral extraction and says it will have the final say on how and where Kiev is mined. Ukraine also retains ownership of the lower soil.
“All our territory and territorial resources belong to Ukraine. It is the Ukrainian state that decides where and what to pull out,” Ukrainian Minister of Economy, Yulia Swillidenko, has signed a contract on behalf of her country.
And while Trump calls the agreement a “rare earth” deal, the agreement signed Wednesday goes far beyond that by including other natural resources such as oil, natural gas, gold and copper.
tone: In Ukraine’s victory, the deal also employs a powerful language about war with Russia itself. It diverges from some of Trump’s previous false statements that pointed to Moscow as an invader of the conflict and that Ukraine and Zelensky were responsible for the war.
The contract also elaborates on the contract’s goals as “a peaceful, sovereign and resilient Ukraine.” This is a notable step away from Trump, who said earlier this year, “Ukraine might one day be Russia.”
I guarantee: It also keeps the doors open for future membership in the European Union in Ukraine, stating that investments must be made in accordance with Ukraine’s obligations as an EU candidate country. He adds that if Ukraine joins the bloc in the future, the deal will be renegotiated “in good faith.”
US boost: However, the terms of the contract also show that the US has secured many advantages in itself.
US Treasury Secretary Scott Becent characterized it as a “historical economic partnership,” saying it “clearly demonstrates to Russia that the Trump administration is committed to a peace process centered around Ukraine, where it has long been free, sovereign and prosperous.”
The contracts seen by CNN also specify that revenue and other payments made as part of the transaction are tax-free and not subject to taxation or obligations by Ukraine.
It also states that there is a legal precedent for the transaction if a dispute arises between the wording of the agreement and Ukrainian law.
Security Questions: Ukraine has removed the important demand for the US to provide security assurances as part of this agreement. This request ultimately led to a cry between Zelensky and Trump in the oval office in February.
Trump then refused to provide security guarantees and asked Ukraine to sign the contract first and then talk about the warranty later.
Zelensky refused at the time, but Ukrainian officials have since shown that US investment and the presence of Ukrainian companies have seen Washington as more interested in Ukraine’s safety.
Exclusive access to the US: While we guarantee that the United States will receive preferential access to Ukrainian mineral wealth, this transaction does not guarantee an exclusive right.
Existing resources: This transaction is limited to new projects. This means that the US and Ukraine need to invest in order to see profits. Existing mining operations that already generate revenue from the Ukrainian government are excluded.
This clause puts a question mark on the profits of US transactions. Ukraine has large reserves of some valuable material, but the process of extracting some of them is expensive and technically difficult.
Gavin Mud, director of the Critical Mineral Intelligence Centre at the UK Geological Survey, told the Nonprofit Science Media Centre that production of some minerals, such as titanium, lithium and graphite, can be achieved quickly if sediments are safe.
“However, for rare earths, it takes years to increase capacity. Research needs to be completed to evaluate and determine the best way to mine and process the deposits and produce rich concentrates. And what is needed to produce high purity metals and oxides for use in many techniques.
The Ukrainian government has previously argued that its mineral deposits are one of the reasons why its mineral deposits should support Ukraine.
Experts agree with that idea. Capital economics economists Liam Peach and Hamad Hussein wrote in analysts’ memo on Thursday that the agreement “provides a sense of security that the Trump administration does not plan to abandon Ukraine completely.”
The deal strengthens Ukraine’s position, but it is separate from negotiations with Russia and does not necessarily end the war. These talks appear to be stalling as Russia continues to reject the 30-day ceasefire agreement proposed by the US and agreed by Ukraine.
Meanwhile, the catastrophic war continues to infuriate. Seven people died in occupied Ukraine on Thursday, with Russian and Ukrainian officials requesting attacks
Shelby Magid, deputy director of the Atlantic Council’s Eurasian Centre, wrote that the deal notes Ukrainians as “still the strongest position in Washington since Trump took office.”
The road to it was incredibly rocky, with the United States temporarily halting its assistance to Ukraine after a disastrous oval office meeting.
For the next few weeks, negotiations continued behind the scenes, during which time Trump began to lose patience at the impasse in Putin’s peace deal, opening up to Kiev to repair his bond.
The signature came just days after Trump and Zelensky attended Pope Francis’ funeral on Saturday. The two leaders spoke personally, without cameras, away from the aides who had derailed the process in the past.
The photographs of the two inside St. Peter’s Cathedral, leaning together, showed them in discussion and leaned towards each other.
After the meeting, Trump questioned whether Russian leader Vladimir Putin wanted a peace deal, and came to the idea of imposing more sanctions on Moscow. Just a few days later, a mineral contract was signed.
“Ukrainian officials have shown that they can ultimately pilot and endure to get a fair deal. The Trump administration put a lot of pressure on Ukraine to accept the previous deal, but Ukraine somehow has shown that it must accept the bad deal, not just a junior partner,” Majid said.
However, there was more drama on Wednesday. That was a last-minute discrepancy that the document would be signed on Wednesday threatened to derail the deal.
Materials such as graphite, lithium, uranium and 17 chemical elements known as rare earths are important for economic growth and national security.
These are essential for the production of clean energy technologies such as electronics, wind turbines, energy networks, electric vehicles, and some weapons systems.
China has long dominated the global production of rare earth minerals and other strategically important materials, with Western countries desperate for other alternative sources, including Ukraine.
The United States is heavily dependent on importing the minerals it needs. According to the governmental US Geological Survey, the United States is completely dependent on 12 imports and another 16 of the 50 minerals classified as important.
Meanwhile, according to the Ukrainian government, Ukraine deposits 22 of these 50 important materials.
The country is home to some of the world’s largest deposits of graphite, lithium, titanium, beryllium and uranium, all of which are classified by the United States as important minerals. Some of these reserves are in areas currently under Russian occupation.
