US, Ukraine finalize critical minerals deal amid Russia conflict
What's the story
In a major diplomatic shift, the United States and Ukraine have finalized a critical minerals deal.
The deal, which was announced by US President Donald Trump, is expected to be signed by Ukrainian President Volodymyr Zelenskyy during his upcoming visit to the US.
The deal comes amid rising tensions between the two countries, where Washington is now seen siding with Moscow to end the ongoing conflict.
Demand withdrawal
Agreement follows US's withdrawal of $500bn demand
The critical minerals deal was struck after the US tabled its demand for $500 billion in revenue from Ukraine's mineral resources.
Trump had initially insisted on access to Ukraine's rare earth minerals as compensation for wartime aid given under former President Joe Biden's administration.
The White House now sees this agreement as a major step toward achieving a ceasefire with Russia.
Strategic collaboration
Ukraine to collaborate with US on mineral resources
After the removal of unfavorable clauses, Ukraine is now prepared to partner with the US in developing its mineral resources, including oil and gas.
This partnership is viewed as key to ensuring continued US military support against Russia.
Rare earth elements are critical for a range of technologies, and decreasing reliance on China, a top producer, is a strategic objective for both the US and Europe.
Policy shift
Trump's approach marks shift in US foreign policy
The Trump administration's handling of the deal marks a shift in US foreign policy, where economic returns take precedence over conventional security obligations.
Ukrainian officials had previously voiced apprehensions about possible consequences if they declined Trump's terms.
This included fears of losing military aid or limited access to vital communication systems such as Elon Musk's Starlink.
Allies's concerns
European allies unsettled by Trump's demands
Trump's demands have also rattled European allies, with Britain and France considering sending 30,000 peacekeeping troops to Ukraine if needed.
European leaders are directly engaging with both Kyiv and Washington to discuss these developments after being caught off-guard.
Some Ukrainian officials have called the negotiations extortionate, cautioning that rejecting Trump's terms could result in dire consequences.