The Truth of the Matter
Ukraine Minerals Deal Explained
Feb 26, 2025
Gracelin Baskaran, Director of the Critical Minerals and Security Program at CSIS, discusses the U.S.-Ukraine minerals deal and its potential implications for global resource security. She explains Ukraine's decision to proceed without security guarantees and the risks it introduces for private investors. Baskaran draws parallels to China’s mineral agreements in the DRC while emphasizing the urgency of securing U.S. supply chains. Listeners also get a sneak peek into her forthcoming book, which addresses critical minerals' impact on the U.S. economy and national security.
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Quick takeaways
- The U.S.-Ukraine minerals deal highlights the strategic importance of mineral resources in enhancing cooperation amid ongoing conflict and Russian threats.
- The lack of security guarantees in the deal raises significant concerns about attracting private investment, jeopardizing potential resource development in Ukraine.
Deep dives
The Significance of Mineral Deals for Ukraine
Recent developments in U.S.-Ukraine relations underscore the strategic importance of mineral resources in foreign policy. Ukraine has agreed to a minerals deal with the U.S., which aims to enhance cooperation on jointly developing mineral resources, excluding existing oil and gas projects. This agreement represents not just a potential economic boost for Ukraine but also a commitment from President Zelensky to future monetization of these resources amid ongoing conflict. The quick resolution of negotiations reflects the mounting pressure on Ukraine from both international partners and the immediate threat from Russia.
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