One good thing that came from the spat between Donald Trump and Volodymyr Zelensky last week at the White House was that it seemed to put a minerals deal between the U.S. and Ukraine in jeopardy.
Now, unfortunately, cooler heads seem to be prevailing.
Zelensky said on Tuesday that he is “ready to sign” the deal and Trump has expressed his appreciation for Ukraine’s willingness to do so. Officials from both countries have indicated that they will meet in Saudi Arabia next week to discuss the war in Ukraine and the minerals deal.
From what we know, the deal would create a fund from sales of Ukrainian minerals for post-war reconstruction of Ukraine, repay the U.S. for aid to Ukraine in its war against Russia, and create opportunities for U.S. mining companies that will purportedly reduce U.S. mineral dependence on China. American officials have hailed the agreement as a “co-investment” that’s a “win-win” for both the U.S. and Ukraine.
Finding ways for Ukraine to rebuild using its own resources is a good thing, as is creating opportunities for U.S. businesses abroad. But Trump needs to beware of the minerals trap—the costly, no-holds-barred pursuit of rare-earth minerals that sometimes gets great powers into trouble strategically.
Author
William
Walldorf
Senior Fellow
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