Mining Agreement Between Ukraine and the United States: Challenges and Prospects

Ukraine and the United States have signed a framework agreement aimed at jointly exploiting Ukraine’s mineral resources, including rare earth elements, oil, and natural gas. The agreement comes amid the ongoing war with Russia and seeks to strengthen economic cooperation between the two nations.

Share:

Ukraine, rich in natural resources such as lithium, cobalt, oil, and natural gas, has recently concluded a framework agreement with the United States to jointly exploit these resources. This initiative is intended to boost economic cooperation between the two countries, particularly in light of the ongoing conflict with Russia.

Terms of the Agreement

The agreement provides for the creation of an investment fund to aid the reconstruction of Ukraine, funded by 50% of the revenues generated from the exploitation of Ukraine’s natural resources. This fund will be used to finance various development projects across the country. Although the United States initially sought full control over this fund and potential revenues amounting to $500 billion, these demands were dropped in the final version of the agreement.

Lack of Security Guarantees

It is important to note that the agreement does not include explicit security guarantees from the United States for Ukraine. Discussions on additional military aid are still ongoing, and the current agreement focuses primarily on economic cooperation.

International Reactions and Implications

The conclusion of the agreement has sparked various reactions on the international stage. Some observers believe that this collaboration could enhance Ukraine’s economic position and attract further foreign investment. However, others have expressed concerns over the absence of security guarantees, especially considering the current situation with Russia.

Next Steps

Ukrainian President Volodymyr Zelensky is set to visit Washington to officially sign the agreement with his American counterpart, Donald Trump. This visit will provide an opportunity to finalise the details of the cooperation and discuss future prospects for the two nations.

BRICS adopt a joint financial framework aimed at supporting emerging economies while criticizing European carbon border tax mechanisms, deemed discriminatory and risky for their strategic trade relations.
The European Commission is launching an alliance with member states and industrial players to secure the supply of critical chemicals, amid growing competition from the United States and China.
Trade between Russia and Saudi Arabia grew by over 60% in 2024 to surpass USD 3.8 billion, according to Russian Minister of Industry and Trade Anton Alikhanov, who outlined new avenues for industrial cooperation.
Meeting in Rio, BRICS nations urge global energy market stability, openly condemning Western sanctions and tariff mechanisms in a tense economic and geopolitical context.
Despite strong ties, Iran's dependence on oil revenues limits its ability to secure substantial strategic support from Russia and China amid current international and regional crises, according to several experts.
Egypt’s Electricity Minister engages in new talks with Envision Group, Windey, LONGi, China Energy, PowerChina, and ToNGWEI to boost local industry and attract investments in renewable energy.
The potential closure of the Strait of Hormuz places Gulf producers under intense pressure, highlighting their diplomatic and logistical limitations as a blockage threatens 20 million daily barrels of hydrocarbons destined for global markets.
Budapest and Bratislava jointly reject the European Commission's proposal to ban Russian energy supplies, highlighting significant economic risks and a direct threat to their energy security, days ahead of a key meeting.
Libya officially contests Greece's allocation of offshore oil permits, exacerbating regional tensions over disputed maritime areas south of Crete, rich in hydrocarbons and contested by several Mediterranean states.
Hungary, supported by Slovakia, strongly expresses opposition to the European Commission's plan to phase out imports of Russian energy resources, citing major economic and energy impacts for Central Europe.
Israeli military strikes on Iran's Natanz nuclear site destroyed critical electrical infrastructure but did not reach strategic underground facilities, according to the International Atomic Energy Agency (IAEA).
The French president travels to Nuuk on 15 June to support Greenlandic sovereignty, review energy projects and respond to recent US pressure, according to the Élysée.
Kazakhstan has selected Rosatom and China National Nuclear Corporation to build two nuclear power plants totaling 2.4 GW, a decision following a favorable referendum and coinciding with Xi Jinping’s upcoming strategic visit.
Israeli strikes against Iranian nuclear sites disrupt US-Iranian talks on the nuclear deal. Tehran now considers canceling the upcoming negotiation round in Oman, heightening regional economic concerns.
Facing alarming breaches of uranium enrichment thresholds by Iran and explicit existential threats, Israel launches targeted military strikes against Iranian nuclear infrastructure, escalating regional tensions dramatically.
The Kremlin has confirmed that Vladimir Putin aims to help resolve the nuclear dispute between the United States and Iran, leveraging strengthened strategic ties with Tehran.
President Lee Jae-myung adopts an energy diplomacy rooted in national interest, amid a complex international landscape of rivalries that could create challenging situations for the country and its energy businesses.
Paris and Warsaw held a bilateral workshop in Warsaw to strengthen coordination on electricity infrastructure investments and supply security under the Nancy Treaty.
Donald Trump firmly rejects any uranium enrichment by Iran, while Russia affirms Tehran’s right to civil nuclear power, intensifying tensions in negotiations over the Iranian nuclear program.
Syria has signed a $7bn agreement with a consortium of companies from Qatar, Turkey and the United States to rebuild its national power sector.