The Truth of the Matter Ukraine Minerals Deal Explained
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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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Ukraine Minerals Deal
- The new U.S.-Ukraine minerals deal commits Ukraine to sharing future profits from new mining projects.
- This excludes existing oil and gas projects and aims to fund Ukraine's reconstruction.
Zelenskyy's Motivation and Deal Risks
- President Zelenskyy likely agreed to the deal due to mounting pressure, including Putin's offer of a similar deal.
- The deal lacks security guarantees, potentially deterring private investment due to the risk of expropriation.
Deal Framework and Private Sector Role
- The U.S.-Ukraine minerals deal is primarily a fiscal agreement outlining resource sharing.
- The U.S. government doesn't directly mine; private sector involvement is crucial, but the lack of security guarantees poses a challenge.