The Trump administration is reportedly considering a simplified agreement with Ukraine on mineral resources, aiming to quickly conclude a deal and then negotiate detailed conditions later, according to two sources familiar with the matter, speaking to Reuters on Wednesday.
Previously, Ukrainian President Selenskyj rejected a detailed US proposal, under which Washington would have received 50% of Ukraine’s significant mineral resources, including graphite, uranium, titanium and lithium, the latter a crucial component in batteries for electric vehicles.
The conditions of the already rejected agreement, which would normally be imposed on defeated aggressor states, go far beyond the post-World War II demands made of Germany and Japan. The draft gave the US 50% of the revenue from raw material extraction and 50% of the value of new licenses issued to third parties, with the revenue being “seized” in favor of the US.
Efforts to reach an agreement continue, despite the growing divide between Trump and Selenskyj. The Americans have concluded that concluding a comprehensive agreement would take more time and a revised and simplified approach would allow them to bypass numerous legal and logistical hurdles and give them time to negotiate details, including the division of profits, at a later date, according to Reuters.
US President Donald Trump still wants a pact with Ukraine, before possibly approving more US military aid for Kiev or attempting to mediate formal peace talks between Ukraine and Russia to end the three-year-old war.
“The US has not resorted to the exchange of natural resources for help in the past, but it’s a well-tried instrument in China’s playbook for minerals” said Gracelin Baskaran, director of the critical minerals program at the Center for Strategic and International Studies.
Ukraine is very interested in deepening its economic and security ties with the United States and finding a way to acknowledge the significant US investments already made in Ukraine’s future, said Tyson Barker, former US special envoy for Ukraine’s economic recovery.