Ukraine says it has agreed on a minerals deal with US

The United States and Ukraine have agreed on the terms of a major minerals deal that Kyiv hopes will improve its relations with President Donald Trump’s administration.

Ukraine said it was ready to sign the agreement on jointly developing it mineral resources -- after the US dropped its demand for a right to $500 billion in potential revenue from the deal.

Kyiv is also hoping that signing the agreement will ensure the continued flow of US military support that Ukraine urgently needs.

Media reports suggest however that Washington has not given firm security guarantees to the country. A Ukrainian official said that this would be something the two presidents would discuss when they meet.

Trump says he’s expecting his Ukrainian counterpart, Volodymyr Zelensky, in Washington later this week to sign the deal.

Ukraine holds deposits of critical elements and minerals, including lithium and titanium. They are needed for the production of hi-tech products and also consumer electronics, artificial intelligence infrastructure, and weapons.

European Commission research shows that before the outbreak of the war with Russia, Ukraine was a key supplier of titanium, producing about 7 per cent of global output in 2019.

It also has sizeable coal, gas, oil, and uranium deposits.

The progress in negotiating the deal comes after Trump and Zelenskyy traded sharp rhetoric last week about their differences over the matter.

The deal was initially proposed by Zelenskyy last year part of his plan to strengthen Kyiv’s hand in future negotiations with Moscow.

Trump, whose administration bypassed Ukraine to hold direct talks with the Russian side in a bid to end the three-year conflict, has long wanted Ukraine's rare earth deposits.

He has also criticised former President Joe Biden administration for providing too much aid to Ukraine while getting nothing in return.