February 28, 2025
MarketWatch recently published an article featuring Mark Williams, Master Lecturer of Finance, discussing the ongoing negotiations surrounding the potential U.S.-Ukraine minerals deal.
The potential U.S.-Ukraine minerals deal, expected to be announced soon, has sparked a dispute between Presidents Trump and Zelensky. It focuses on U.S. access to Ukraine’s valuable mineral resources, including rare earths and titanium, estimated to be worth over $10 trillion. Key issues include a U.S. proposal to take $500 billion in profits from the sale of Ukraine’s rare earths as compensation for military aid. While Ukraine holds significant mineral wealth, its true value is uncertain due to the ongoing war, damaged infrastructure, and Russian-controlled areas. The deal also highlights U.S.-China competition for critical minerals, with critics warning it could set a troubling precedent due to corruption concerns and Ukraine’s ability to honor the deal long-term.
“Even if a deal is struck for billions of dollars’ worth of critical minerals, will Ukraine have the means and desire to honor this contract indefinitely? Given mine locations, and level of war destruction, limited resources need to be used to rebuild post-war Ukraine and not for extracting minerals for the U.S,” Williams adds.
While the deal could provide sizable economic benefits for the U.S., it raises significant risks and questions about Ukraine’s near-term dealings to ensure long-term stability.