As we mark 3 years since Russia invaded Ukraine in February 2022, 'peace' is now a far-sighted possibility. With Donald Trump pursuing an end to the Russia-Ukraine war, Ukraine's vast mineral wealth is now at the centre of negotiations.

Advertisment

Ukraine is home to some of the world's largest reserves of critical minerals. Reports estimate that 111 billion tonnes of resources worth $14.8 trillion are hidden beneath its soil. This includes essential rare earth metals like Neodymium, Lanthanum, and Yttrium. The country is ranked among the top 10 suppliers, and was a major supplier of Titanium, Gallium, and Neon gas before Russia's invasion, which disrupted Ukraine's energy supply chains. According to Ukraine, Russia controls over 40 per cent of its critical mineral resources.

‘We have information that, unfortunately, there is about $350 billion worth of these useful critical materials in the temporarily occupied territory. We understand that these are resources that the aggressor unfortunately has and that can be used. The same titanium, used primarily for the aviation industry, the defence industry, the medical industry, will be used against us in this fight,’ Yulia Svyrydenko, Ukraine’s deputy prime minister, recently said. 

United States eyes Ukraine's 'hidden wealth'

Advertisment

The US has been one of the major lenders for Ukraine since 2022. The billion-dollar aid made so far allowed Ukraine to persevere against the Russian onslaught. Now, with a new administration at the helm, Ukraine's foreign aid faces an uncertain future.

Donald Trump has expressed interest in Ukraine's critical mineral reserves to counter China's market dominance. Trump believes that Ukraine should allow access to its strategic reserves in exchange for continued military aid. However, Zelensky has rejected the deal, citing no benefit for Ukrainians. He argues that the proposed sum vastly exceeds the $100 billion in aid received from the US.

'That is why I did not allow ministers to sign the agreement because it is not ready. In my opinion, it does not protect us. It is not ready to protect us, our interests. For me, it is very important to talk about investments in Ukraine, and investments in particular. And it must be written out legally correctly, correctly, and it is an investment,' he said.

Advertisment

Commercial viability of Ukraine's critical minerals

According to experts, Ukraine's natural resource potential relies on outdated Soviet-era data. Additionally, the energy infrastructure of the country has been severely damaged, making large-scale mining projects difficult and expensive. The commercial aspects of the deal are still in question, with Ukraine's economic future at stake.