Ukraine, US Sign Mineral Deal          05/01 06:01

   After months of tense negotiations, the U.S. and Ukraine signed a deal that 
is expected to give Washington access to the country's critical minerals and 
other natural resources, an agreement Kyiv hopes will secure long-term support 
for its defense against Russia.

   KYIV, Ukraine (AP) -- After months of tense negotiations, the U.S. and 
Ukraine signed a deal that is expected to give Washington access to the 
country's critical minerals and other natural resources, an agreement Kyiv 
hopes will secure long-term support for its defense against Russia.

   According to Ukrainian officials, the version of the deal signed Wednesday 
is far more beneficial to Ukraine than previous versions, which they said 
reduced Kyiv to a junior partner and gave Washington unprecedented rights to 
the country's resources.

   The deal itself has not yet been made public, but the Economy Ministry and 
the prime minister's office have offered some details.

   The agreement -- which the Ukrainian parliament must ratify -- would 
establish a reconstruction fund for Ukraine that Ukrainian officials hope will 
be a vehicle to ensure future American military assistance. A previous 
agreement was nearly signed before being derailed in a tense Oval Office 
meeting involving U.S. President Donald Trump, U.S. Vice President JD Vance and 
Ukrainian President Volodymyr Zelenskyy.

   "We have formed a version of the agreement that provides mutually beneficial 
conditions for both countries. This is an agreement in which the United States 
notes its commitment to promoting long-term peace in Ukraine and recognizes the 
contribution that Ukraine has made to global security by giving up its nuclear 
arsenal," Ukrainian Economy Minister Yulia Svyrydenko said in a post on 
Facebook.

   The signing comes during what U.S. Secretary of State Marco Rubio said would 
be a "very critical" week for U.S.-led efforts to end the war that appear to 
have stalled. Ukraine sees the deal as a way to ensure that its biggest and 
most consequential ally stays engaged and doesn't freeze military support, 
which has been key in its 3-year-old fight against Russia's full-scale invasion.

   "This agreement signals clearly to Russia that the Trump administration is 
committed to a peace process centered on a free, sovereign, and prosperous 
Ukraine over the long term," Treasury Secretary Scott Bessent said in a 
statement.

   Here is a look at the deal.

   What does the deal include?

   The deal covers minerals, including rare earth elements, but also other 
valuable resources including oil and natural gas, according to details released 
by Ukrainian officials. It does not include resources that are already a source 
of revenue for the Ukrainian state. In other words, any profits under the deal 
are dependent on the success of new investments.

   While Trump has repeatedly expressed interest in Ukraine's rare earth 
elements, it unclear what other minerals might be part of the deal. Earlier 
this year, Andrii Yermak, the head of Ukraine's presidential office, said it 
could include lithium, titanium or uranium.

   The agreement ensures full ownership of the resources remains with Ukraine, 
according to Ukrainian officials. The state will determine where and what can 
be extracted.

   It also does not refer to any debt obligations for Ukraine, the officials 
have said, meaning profits from the fund will not go toward the paying the U.S. 
back for its previous support.

   What are rare earth elements?

   They are a group of 17 elements that are essential to many kinds of consumer 
technology, including cellphones, hard drives and electric and hybrid vehicles.

   China is the world's largest producer of rare earth elements, and both the 
U.S and Europe have sought to reduce their dependence on Beijing, Trump's chief 
geopolitical adversary.

   How will the fund work?

   The agreement establishes a reconstruction investment fund, and both the 
U.S. and Ukraine will have an equal say in its management, according to 
Svyrydenko.

   The fund will be supported by the U.S. government through the U.S. 
International Development Finance Corporation agency, which Ukraine hopes will 
attract investment and technology from American and European countries.

   Ukraine is expected to contribute 50% of all future profits from 
government-owned natural resources into the fund. The United States will also 
contribute in the form of direct funds and equipment, including badly needed 
air defense systems and other military aid.

   Contributions to the fund will be reinvested in projects related to mining, 
oil and gas as well as infrastructure.

   No profits will not be taken from the fund for the first 10 years, 
Svyrydenko said.

   Trump administration officials initially pushed for a deal in which 
Washington would receive $500 billion in profits from exploited minerals as 
compensation for its wartime support.

   But Zelenskyy rejected the offer, saying he would not sign off on an 
agreement "that will be paid off by 10 generations of Ukrainians."

   What is the state of Ukraine's minerals industry?

   Ukraine's rare earth elements are largely untapped because of state policies 
regulating the industry, a lack of good information about deposits, and the war.

   The industry's potential is unclear since geological data is thin because 
mineral reserves are scattered across Ukraine, and existing studies are 
considered largely inadequate, according to businessmen and analysts.

   In general, however, the outlook for Ukrainian natural resources is 
promising. The country's reserves of titanium, a key component for the 
aerospace, medical and automotive industries, are believed to be among Europe's 
largest. Ukraine also holds some of Europe's largest known reserves of lithium, 
which is required to produce batteries, ceramics and glass.

   In 2021, the Ukrainian mineral industry accounted for 6.1% of the country's 
gross domestic product and 30% of exports.

   An estimated 40% of Ukraine's metallic mineral resources are inaccessible 
because of Russian occupation, according to data from We Build Ukraine, a 
Kyiv-based think tank. Ukraine has argued that it's in Trump's interest to 
develop the remainder before Russian advances capture more.