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Expert Breaks Down What US-Ukraine Minerals Deals Means For Negotiations With Russia
Forbes Breaking News
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5/5/2025
On "Forbes Newsroom" Tinatin Japaridze, an analyst for the Eurasia Group, spoke about the newly signed U.S.-Ukraine minerals deal.
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Transcript
Display full video transcript
00:00
Another development we saw this week is the United States and Ukraine signed that long
00:05
anticipated minerals deal. And we saw that really break down in that fiery meeting between Zelensky
00:11
and Trump at the White House back in February. Both sides touted this as a victory. What does
00:16
this deal do for the negotiations and the war at large? Well, it was a big deal. And obviously,
00:23
two months after their infamous Oval Office debacle, the US and Ukraine announced, as we
00:30
know, at this point on Wednesday, that they had finally struck this long awaited minerals deal.
00:35
The agreement is most likely going to get ratified by the Ukrainian parliament, the Verkhovna Rada,
00:41
very soon. So there's no reason for us to think that something is going to change on that front,
00:46
which I do think that this is actually good news. But we should note that in terms of this deal,
00:53
that's, you know, sort of a more balanced, you know, the terms that are more balanced in the
01:01
initial US proposals, what we saw initially from the United States was seen by Ukraine as an unfair
01:08
deal. Whereas this draft, the final draft has been assessed, including by the Ukrainian side,
01:16
as something that is more fair and more balanced than what had been floated in the past. So essentially,
01:22
the deal is going to establish a joint investment fund with equal US and Ukrainian ownership,
01:27
and on developing Ukraine's rare earth minerals, which just for your viewers, these are essential
01:33
for electric vehicle batteries, various consumer and military technologies, as well as oil and gas
01:40
projects. So this is a big deal. Now, the deal is limited to the new mineral resources projects,
01:46
by the way, and this is designed not to interfere with Ukraine's EU relation relationships, or member
01:53
membership negotiations, which is very important for Kyiv. And this is something that they were trying to get.
01:59
And it's also important to underscore that the US is actually shifting away from tying such economic
02:04
agreements to repayment for past assistance, which as you recall, Brittany, you and I talked about this,
02:10
I believe not long ago. And this suggests a more sort of an improved framework for future US-Ukraine
02:18
relations going forward beyond just this deal. So it is a big deal. But by the same token, what the deal
02:25
does not do is that it does not resolve the fundamental differences between Ukrainian and Russian
02:32
perspectives on Ukraine's future. And as I said earlier, there will still continue to be a great deal
02:38
of mistrust between them. And I'm very interested to see what the Kremlin has to say officially about
02:44
this deal. So far, as of right now, as of Thursday afternoon, I have not seen any statements coming out
02:51
of Moscow. It is quite late in Moscow at the moment. I think they're still very much digesting all of this.
02:57
But at the end of the day, this deal and securing US involvement going forward is going to be a positive
03:04
development for Kyiv and more broadly for Ukraine's defense efforts. I did read actually one of the
03:11
opposition MPs in Ukraine who said earlier that, no, we weren't choosing between good and bad. We were
03:17
choosing between bad and worse. And I do think that compared to what was floated earlier, this is a much
03:24
better deal for Ukraine. And I do think it's a good deal for the United States, because let's face it,
03:30
pragmatically speaking, the US gets quite a lot out of it.
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