More than a month after Ukraine signed a landmark agreement granting the United States a stake in its mineral reserves, Kyiv is striving to show the Trump administration that the deal can deliver swift, tangible results.
On Monday, Ukraine approved the first steps to allowing private investors to mine a major state-owned lithium deposit, two government officials said. Such a project would be the first to be greenlit under the deal.
The government agreed to begin drafting recommendations for opening bidding by companies to mine the Dobra lithium field in central Ukraine, according to the two officials, who spoke on the condition of anonymity to discuss a sensitive topic. It is one of Ukraine’s largest fields of lithium, a mineral critical for producing electric batteries.
Among the likely bidders is a consortium of investors that include TechMet, an energy investment firm partly owned by the U.S. government, and Ronald S. Lauder, a billionaire friend of President Trump’s. The group has long expressed interest in the Dobra lithium deposit, urging President Volodymyr Zelensky of Ukraine in late 2023 to open bids.
Under the broader deal, half the revenues the Ukrainian government earns from mineral extraction would go to a joint U.S.-Ukraine investment fund. Those revenues would then be reinvested in Ukraine’s economy, though the United States would also claim a portion. Mr. Trump has portrayed that arrangement as repayment for past U.S. aid to the war-torn country.
Drafting the recommendations is expected to take weeks, and the Ukrainian government could still decide against opening the bidding process. The Ukrainian government did not immediately publicly comment on Monday’s decision.
Still, Monday’s decision signaled Ukraine’s effort to show Mr. Trump that the deal is making headway, amid growing concerns that the White House may disengage from the war as cease-fire talks with Russia stall.
Ukraine and Russia have engaged only in exchanges of prisoners of war and bodies of fallen soldiers. On Monday, Kyiv said it had received a final batch of bodies — bringing the total to about 6,000 — under an agreement reached this month in Istanbul.
In an effort to kick-start the minerals deal, a Ukrainian delegation led by Yulia Svyrydenko, Ukraine’s energy minister, traveled to Washington this month to pitch projects to exploit lithium, graphite and titanium deposits.
“These are exactly the kinds of strategic initiatives where U.S.-Ukraine cooperation can deliver mutual benefit,” Ms. Svyrydenko said in a statement after meeting with Scott Bessent, the Treasury secretary.
The United States has shown particular interest in tapping Ukraine’s critical minerals as a way to reduce reliance on China, which dominates global supply chains. Beijing has leveraged export restrictions on these minerals to pressure Mr. Trump to reach a trade deal.
The Ukrainian authorities say the country holds deposits of nearly half of the 50 minerals that the United States has identified as critical for its economy and national security, including lithium, graphite and titanium. The Kyiv School of Economics says Ukraine holds the largest titanium reserves in Europe and a third of the continent’s lithium reserves.
But industry analysts warn that most projects under the deal will most likely take a decade or more to become operational. This means the joint U.S.-Ukraine investment fund is unlikely to generate significant revenues for years and may turn profitable only long after Mr. Trump leaves office.
Experts say the path to extracting the minerals is fraught with challenges. Outdated geological surveys could cloud the true value of Ukraine’s subsoil; damaged power plants that are needed to extract resources need repair; and the ongoing war makes any investment inherently risky.
Investors are also wary of entering a country where corruption has long plagued the sale of state-owned assets. “We are hopeful that Ukraine will move ahead with an open, fair and transparent process,” Brian Menell, the chief executive of TechMet, said in a statement last week.
To reduce risks, Mr. Menell and other investors have been advocating for an investment vehicle known as a production sharing agreement, a contract that lets investors extract minerals in exchange for sharing output with the Ukrainian government.
This type of agreement appeals to investors because it is usually in effect over several decades, providing long-term stability, and offers tax incentives and allows the settlement of disputes through international arbitration courts.
The bidding process that Ukraine launched on Monday for the Dobra lithium field was under a production-sharing agreement.
In an apparent effort to generate profits faster, Ms. Svyrydenko, the economy minister, proposed this month that the joint investment fund also support projects in Ukraine’s booming defense industry. The country has numerous factories producing drones, shells and artillery cannons at a fraction of American and European costs, but it lacks the capital to scale up.
American companies could provide that capital, with revenues from future weapons sales ultimately bolstering the fund, said Natalia Shapoval, the head of the Kyiv School of Economic Institute, a leading research center.
“It’s about making the fund more attractive for the United States,” she said. “Where do you invest money to get a return today in Ukraine? In defense.”
Constant Méheut reports on the war in Ukraine, including battlefield developments, attacks on civilian centers and how the war is affecting its people.
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