Description: US Treasury Secretary Scott Bessent hosted the Ukrainian Deputy Prime Minister Yulia Svyrydenko in Washington as they signed a breakthrough rare earth minerals agreement. The agreement outlined the formation of a joint investment fund between the US and Ukraine, and a US lease on mining rights on Ukraine’s rare earth mineral deposits. The proceeds from the mining projects would initially be used for Ukraine’s infrastructure and economic resuscitation, all the while benefiting the US by allowing them access to raw materials which are virtually used in every high – tech industry nowadays. Information regarding the other crucial elements of the agreement was scarce, however, initial reports indicated that no security guarantees were provided for Ukraine, instead, they’ve been allowed not to share the proceeds with the US in any form or shape from the first 10 years of mining operations. US media sources hailed the agreement stating that Ukraine now would mostly benefit from it, as it has gained a significant ally in the US which would rebuke the current narrative towards Russia.
Impact: The signing of the agreement, although buffed by the Western media, mostly benefits the US as Ukraine’s security is still highly dependent on resolving the war with Russia, which in turn holds approximately 40% of Ukraine’s rare earth mineral reserves. In order for the agreement to become operational, multiple obstacles need to be surpassed by both the US and Ukraine, as Russia hasn’t taken the agreement as a serious diplomatic threat which could be used by the US administration to pressure Putin into making concessions. The agreement also has global ramifications as the US has ensured long – term access to highly valuable resources and an abrupt upper hand in the trade war with China. The newly developed situation despite giving Trump political points wouldn’t significantly impact the ongoing state of affairs revolving around the war as Russia has no existing incentive to compromise on their maximalist demands to end the war.