Ukraine's Mineral Deal with U.S. Advances Amid Security Guarantee Demands
Ukrainian President Zelenskyy emphasizes the need for security guarantees in U.S. mineral deal, linking it to potential ceasefire.
Overview
Ukraine and the U.S. have progressed in finalizing an economic agreement valued at potentially up to a trillion dollars, focusing on Ukraine's rare earth minerals. President Zelenskyy reiterated that the success of the deal hinges on securing Western security guarantees, as he insisted that without them, there can be no real ceasefire with Russia. The deal's terms have reportedly improved, dropping the previous $500 billion request from the Trump administration. As Zelenskyy prepares for a meeting with Trump, the outcomes of their discussions will heavily influence both the minerals deal and future U.S. military support for Ukraine.
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Bloomberg·4M·FAQ
The main concerns in Ukraine include the fear of economic colonization and the need for security guarantees, as the deal could potentially undermine Ukraine's sovereignty and expose it to further Russian aggression.
President Zelenskyy emphasizes that the success of the mineral deal hinges on securing Western security guarantees, which he believes are crucial for achieving a real ceasefire with Russia.
The current terms of the deal involve Ukraine giving 50% of the profits from natural resource extraction to an investment fund in which the U.S. would have significant control. However, the deal does not commit Ukraine to providing a set amount of revenue and does not relate to past aid.
The U.S. views the deal primarily from an economic perspective, aiming to intertwine the Ukrainian economy with the U.S. and ensure a return on investment for U.S. taxpayers.
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