Inside the U.S.-Ukraine Mineral-Rights Deal

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WSJ What’s News 12 min 5 speakers 6 chapters transcribed
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Tarini Parti 0:52
Trump said the new program would eventually provide a pathway for full citizenship. And companies like Apple could pay to get approval for high-skilled workers to live in the U.S. permanently.
Luke Vargas 1:03
It's Wednesday, February 26th. I'm Luke Vargas for The Wall Street Journal. And here is the AM edition of What's News. The top headlines and business stories moving your world today. The US and Ukraine have agreed to the terms of a mineral rights deal that could be signed by President Trump and President Volodymyr Zelensky in Washington as soon as Friday. Zelensky had said for months Ukraine's allies could have access to the country's mineral resources, but that an agreement would need to include security guarantees. So how does the final deal measure up? I asked Journal foreign correspondent Ian Lovett.

What are the details of the U.S.-Ukraine mineral rights deal?

So, the final deal is less ambitious, both for Ukraine and for the US, than I think the respective sides had potentially been hoping for. Last week, the US presented Zelenskyy with a draft that had some pretty aggressive economic demands in it. And the most notable of those was that the US would have... das Recht auf zukünftige Prozesse von Mineralversorgungsentwicklung bis zu 500 Billionen Dollar, aber es hatte keine Sicherheitswahrnehmung für die Ukraine. Diese Verhandlung, im Gegensatz dazu, hat wirklich keine dieser Dinge. Die ökonomischen Bedingungen sind nur, dass ein Fund eröffnet wird, der eine Teil der Prozesse von Mineralversorgungsentwicklung in der Ukraine in einen Fund einlegt, der dann in die Investitionen in die Ukraine geht. Ukraine will pay 50% into that fund and it's unclear exactly what kind of stake the US might have in that fund or in other kind of joint ownership projects.
That is set to be hashed out in future agreements. But there are also no security guarantees in this deal for Ukraine.

Why is the mineral rights deal significant for Ukraine?

Luke Vargas 2:48
Given that, Ian, I would imagine it would be extra important for Ukrainian officials for this deal to become commercially viable. Analysts, you report, estimate the potential value of those minerals could amount to trillions of dollars. But what is the outlook for those critical minerals actually entering the US supply chain eventually?
Part of the appeal from the Ukrainian side of doing some sort of mineral rights deal with the US is that they hoped it would keep the US invested in Ukraine's future and keeping the country sovereign under Ukrainian control in a way so that whatever economic benefit the US stood to gain, that they would want to make sure that they could get that.

What are the potential economic impacts of Ukraine's mineral resources?

Ukraine is believed to have deposits of at least 20 of the 50 minerals that the US government has designated as critical. A lot of these have never been developed. Up to about 40% of them are currently in parts of the country that are under Russian control. And so access to those, you know, we don't know when, if ever Ukraine might get control of those areas back. Das war Foreign Correspondent Ian Leavitt in Kiew.

How does the U.S. budget plan align with Trump's agenda?

Luke Vargas 4:11
House Republicans squeezed through a budget blueprint late last night, with all but one GOP lawmaker backing the framework for President Trump's tax, border and spending cut agenda. The plan, which likely won't accommodate all of the tax reductions Trump wants, calls for at least $1.5 trillion in spending cuts over a decade and will require significant cuts to Medicaid, an issue that's left House Republicans deeply divided.

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