The United States and Ukraine have come to an agreement allowing access to the European country’s rare earth minerals and other natural resources, announced US President Donald Trump.
During a press conference at the White House on Tuesday, Trump confirmed previous reports that he had struck a deal with Ukrainian President Volodymyr Zelenskyy to develop the crucial minerals.
“I have been informed that he will be arriving on Friday. It is fine with me if he wishes to do so. He intends to sign the agreement with me, and I understand that this is a significant development, a very significant one,” Trump informed journalists at the Oval Office.
Trump stated that the deal could potentially be valued at $1 trillion and will assure that American taxpayers “will receive their money back, and more.”
“We are spending countless billions of dollars on Russia and Ukraine engaging in a war that should never have taken place.”
When questioned about what Kyiv would gain from the agreement, Trump mentioned aid totaling $350 billion that he claims has already been given, as well as “military equipment and the right to continue fighting.”
The US Congress has allocated $174 billion for Ukraine between 2022 and 2024, as reported by the Congressional Research Service.
Trump’s statements followed reports in the media that Washington and Kyiv had reached a deal after Zelenskyy had previously rejected an initial draft that would have relinquished Ukraine’s rights to $500 billion worth of natural resources.
The breakthrough comes as Ukraine aims to mend ties with the Trump administration following tensions over his decision to exclude Kyiv from negotiations with Moscow to resolve the war.
Trump’s outreach to Russian President Vladimir Putin and his verbal attacks on Zelenskyy have raised concerns in Kyiv and European capitals that he is inclined towards swiftly ending the conflict on terms favorable to Moscow.
Last week, Trump called Zelenskiy a “dictator” for his decision to suspend elections following Russia’s 2022 election and accused the Ukrainian leader of avoiding efforts to achieve peace in order to continue receiving US aid.
Reporting from Kyiv, Al Jazeera’s Charles Stratford mentioned that Ukrainian officials believe Zelenskyy’s government will recommend on Wednesday that he signs the agreement with Trump.
“This is extremely significant, as according to the Ukrainians we have spoken to throughout the week, this agreement is seen as a way for Donald Trump to get what he desires,” Stratford mentioned.
Although the full details of the deal have not been confirmed, several media outlets reported that Ukraine would contribute 50 percent of the profits from the future monetization of its resources to a jointly owned fund, which would invest in projects within Ukraine.
The draft agreement reportedly does not specify US security guarantees.
The Financial Times, which initially reported on the deal, stated that the extent of Washington’s involvement in the fund had yet to be determined.
Matthew Sussex, a visiting fellow at the Strategic & Defence Studies Centre at Australian National University, mentioned that the agreement would offer Washington and Kyiv “a means to start fresh after the recent war of words.”
“From what I know, the US has significantly softened its demands. This makes it more acceptable to Kyiv, even though there is no security assurance attached: essentially, Ukraine gains nothing, but does not have to give much either,” Sussex informed Al Jazeera.
It is estimated that Ukraine holds about 5 percent of the world’s reserves of rare earths, according to UN data.
These minerals, which include anthanum, cerium, and praseodymium, are essential components in the production of electronics, batteries, and magnets, among other items.
