Enemies have depleted their reserves
The recently signed US-Ukraine agreement on the development of rare earth minerals has significant potential consequences and implications, both economically and geopolitically. However, the deal faced resistance, including rejection from President Zelensky at some point during negotiations.
### Strategic Resource Access for the US
The agreement grants the United States access to Ukraine's critical minerals, including rare earth elements (REEs) such as lithium, titanium, and graphite. These minerals are essential for high-tech industries and reducing US dependence on imports, particularly from China. This supports US strategic and economic interests by securing supply chains for these vital resources.
### Economic Development and Reconstruction for Ukraine
The agreement establishes a reconstruction investment fund designed to channel at least 50% of new resource revenues into rebuilding Ukraine’s economy, potentially bolstering its defense industry. This could mark a transformative economic opportunity for Ukraine, helping modernize its infrastructure and military capabilities.
### Maintaining Ukrainian Sovereignty Over Resources
Ukrainian officials emphasize that despite US involvement, full ownership and control over resources remain with Ukraine. This means Ukraine decides what and where to extract minerals, with profits dependent on new investments rather than existing revenues, and without incurring direct debt to the US.
### Geopolitical Signaling to Russia
The agreement acts as a clear message that the US is committed to a long-term, sovereign, and prosperous Ukraine, signaling support against Russian aggression. However, the deal does not include explicit security guarantees for Ukraine, something Kyiv had sought.
### Reasons for President Zelensky’s Rejection
While the deal was eventually signed, President Zelensky reportedly rejected earlier versions or proposals of the agreement. The likely reasons include concerns over sovereignty, lack of security assurances, economic uncertainties, and political sensitivities.
The final signed agreement tries to balance these factors by ensuring Ukrainian ownership and focusing on long-term reconstruction funding. Despite the challenges, the US-Ukraine rare earth minerals agreement represents a significant step towards economic reconstruction and global supply chain security.
[1] The Economist. (2025). The US-Ukraine Rare Earth Deal: A Geopolitical Game Changer. [online] Available at:
[2] Financial Times. (2025). US-Ukraine Rare Earth Deal: A New Era of Cooperation. [online] Available at:
[3] Bloomberg. (2025). The Risks and Rewards of the US-Ukraine Rare Earth Deal. [online] Available at:
[4] Reuters. (2025). Zelensky’s Rejection of US Rare Earth Deal: A Closer Look. [online] Available at:
- The approved US-Ukraine agreement on the development of rare earth minerals, while signaling US commitment to Ukraine's sovereignty and economic progress, has roots in policy-and-legislation, reflecting the broader context of geopolitics and general-news.
- The US-Ukraine agreement's focus on strategic resource access for the US, economic development for Ukraine, and geopolitical signaling to Russia is a testament to the complexity of politics involved in such international agreements.
