U.S. Inks Long-Awaited Minerals Deal With Ukraine

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Companies aren't taking any chances, so they are still scrambling to get everything from Christmas tree ornaments in Germany to Heineken beer. They want to get it to the U.S., potentially avoid some of those tariffs. It's Thursday, May 1st.
Luke Vargas 1:06
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. After months of negotiations, several false starts and a testy White House meeting, the U.S. has reached a deal with Ukraine to give Washington access to the country's mineral wealth. Reporter Jane Litvinenko is in Kiev this morning. Jane, when we first reported on the negotiations around this deal back in February, Ukraine's president wasn't happy with some of the terms, namely that Ukraine would be forced to pay back hundreds of billions of dollars in U.S. aid. Volodymyr Zelensky also wanted security guarantees from the U.S. Where did this final agreement net out?
Jane Lytvynenko 1:53
So one of the biggest concessions the US has agreed to is for Ukraine to not repay past military assistance funds. This is something that Zelensky has said was a red line for him, but it's something that the Trump administration has insisted on. Instead, as far as we understand it, what the deal will include is future assistance funds that go into the American side of the fund here. And Ukrainian contributions will come from its mineral wealth. It seems like there's no explicit security guarantees from the U.S. side. But what the deal will allow for Ukraine to do is it will allow for Ukraine to purchase American weapons, which are much needed on the battlefield today. Long range weapons are much needed, as well as Patriot air defense systems.
Jane Lytvynenko 2:42
And so part of what this deal opens up is potential for new weapons deliveries from the U.S., which is something that the Ukrainian administration has been really worried about.
Luke Vargas 2:53
In terms of the economic side of this, I mean, are we expecting mining companies to be showing up in Ukraine right away? I mean, the war is still going on. I'm guessing this is kind of a long term thing.

What concessions did the U.S. make in the Ukraine deal?

Jane Lytvynenko 3:04
Whether businesses will show up and when businesses will show up is still an open question. The Ukrainian side, there's even an open question in terms of what minerals it has and how many minerals it has. So this deal, as far as we know, is going to focus on new licenses, not existing licenses to mine minerals in Ukraine.

What are the implications of the minerals deal for Ukraine?

Jane Lytvynenko 3:26
Mineral mining is a really complex project, but Ukraine does have a lot of those crucial minerals that are key in the global markets right now to everything from making cell phones to making vehicles to making batteries. Will American companies move into Ukraine tomorrow? It's unlikely. But there is a reason why this was such a potentially lucrative deal for the U.S. And the reason for that is because the minerals are quite vast.
Luke Vargas 3:55
This deal had in the past raised a lot of questions about the state of the relationship between Kiev and Washington. We did hear from Treasury Secretary Scott Bessent last night talking about this deal. I want to play a clip of him, which I thought was somewhat telling.
Today's agreement signals clearly to Russian leadership that the Trump administration is committed to a peace process centered on a free, sovereign and prosperous Ukraine over the long term. Jane, what are you hearing there? Is the U.S.

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