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Kyiv seeks to revive U.S. minerals deal as aid freeze takes effect

04.03.2025 13:30
Ukraine is ready to sign a long-discussed agreement on rare-earth minerals with the United States, Prime Minister Denys Shmyhal told Reuters on Tuesday.
Ukrainian Prime Minister, Denys Shmyhal.
Ukrainian Prime Minister, Denys Shmyhal.Volodymyr Tarasov/Ukrinform

He emphasized that ongoing U.S. support is critical for Kyiv, and lamented President Donald Trump’s decision to suspend military aid days after a failed White House meeting on the deal.

Trump pauses military assistance over peace talks

On Monday, the White House announced an immediate hold on over $1 billion in weapons and ammunition earmarked for Ukraine, plus hundreds of millions of dollars for future orders.

Washington said the suspension will remain in place until Trump deems Ukraine “committed” to peace negotiations with Russia. The move follows Trump’s tense Oval Office discussions on Friday with Ukrainian President Volodymyr Zelenskiy regarding access to Ukraine’s vast rare-earth deposits.

Rare-earth minerals: vital for modern tech

Rare-earth elements (REEs)—17 critical minerals identified by the EU—are integral to a range of industries, from consumer electronics and renewable energy to defense systems and medical imaging.

Ukraine has deposits of 22 out of the 34 minerals the European Union classifies as critical, including lanthanum, cerium, neodymium, erbium, and lithium. With an estimated 5 percent of the world’s total mineral resources, Ukraine was one of the top five global producers of graphite—used in electric vehicle batteries—before Russia occupied large swathes of its resource-rich territories.

Russia controls key mining regions

According to Ukrainian authorities, around half of Ukraine’s rare-earth reserves are under Russian control, primarily in the Donetsk and Luhansk regions.

While Ukraine currently lacks active rare-earth mines, government officials, including Economy Minister Yulia Svyrydenko, estimate that resources in Russian-occupied areas are valued at $350 billion. U.S. Geological Survey data shows Ukraine has not produced REEs in decades.

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Source: Reuters, IAR, PR24, PAP