US-Ukraine Minerals Deal: What We Know

FILE - President Donald Trump, right, meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office at the White House, Feb. 28, 2025, in Washington. (AP Photo/ Mystyslav Chernov, File)
FILE - President Donald Trump, right, meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office at the White House, Feb. 28, 2025, in Washington. (AP Photo/ Mystyslav Chernov, File)
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US-Ukraine Minerals Deal: What We Know

FILE - President Donald Trump, right, meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office at the White House, Feb. 28, 2025, in Washington. (AP Photo/ Mystyslav Chernov, File)
FILE - President Donald Trump, right, meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office at the White House, Feb. 28, 2025, in Washington. (AP Photo/ Mystyslav Chernov, File)

Washington and Kyiv have signed a new minerals deal that will see the United States invest in Ukraine's rare earth and other deposits as it seeks to reduce military aid to the war-torn country.

The deal came together after US President Donald Trump demanded compensation for US aid given to Ukraine under his predecessor Joe Biden's administration, and follows weeks of delays following a spat in late February between Trump and Ukrainian leader Volodymyr Zelensky, AFP said.

Here's what we know about the agreement -- which lacks any explicit security guarantees for Ukraine:

- What's in the deal? -

Under the terms of the deal announced on Wednesday, Ukraine and the United States will establish a joint Reconstruction Investment Fund.

The fund will be controlled by a company with "equal representation of three Ukrainian and three American board members," the US Treasury Department said in a statement.

The agreement covers 57 types of resources, including oil and gas.

If the United States decides to buy the resources, they will be given "first choice to either acquire them or designate the purchaser of our choice," the Treasury Department said.

The new fund "will receive 50 percent of royalties, license fees, and other similar payments from natural resource projects in Ukraine," according to the US Treasury.

Its profits will be invested exclusively in Ukraine for the first 10 years, after which profits "may be distributed between the partners," Kyiv said.

What resources does Ukraine have?

Ukraine holds about five percent of the world's mineral resources and rare earths, according to various estimates.

But work has not yet started on tapping many of the resources and a number of sites are in territory now controlled by Russian forces.

Ukraine also has around 20 percent of the world's graphite, an essential material for electric batteries, according to France's Bureau of Geological and Mining Research, and is a major producer of manganese and titanium.

It also says it possesses one of the largest lithium deposits in Europe, which is yet to be extracted.

Kyiv says "rare earth metals are known to exist in six deposits" and an investment of $300 million would be needed to develop a deposit at Novopoltavske, which it claimed was one of the world's largest.

Does Ukraine have to repay the US?

Trump demanded compensation for US aid given to Ukraine under his predecessor Joe Biden's administration.

But under the terms of the deal signed this week, Ukraine will not be asked to pay back the billions of dollars it has received from the United States since Russia's invasion of the country in February 2022.

New military aid from Washington will be counted as its contribution to the fund, according to the text of the agreement.

Ukraine said it will maintain full control over its subsoil, infrastructure and natural resources throughout the process.

Kyiv noted that the agreement does not impact its bid for integration with the European Union.

What does US support mean for Ukraine?

Ukraine has said any deal would need to include long-term and robust security guarantees that would deter Russia from attacking again.

But the text does not place any specific security obligations on the United States.

It simply says that the United States "supports Ukraine's efforts to obtain the security assurances necessary to build a lasting peace."

However, a US Treasury statement notably mentioned Russia's "full-scale invasion" of Ukraine -- diverging from the Trump administration's usual formulation of a "conflict" for which Kyiv bears a large degree of responsibility.

"This is win-win for both sides," US Treasury Secretary Scott Bessent told Fox Business on Thursday.

"I think this is a strong signal to the Russian leadership," he said.



Doctors and Moms Say Babies in Gaza May Die without More Formula, Blame Israel’s Blockade

 Seham Fawzy Khodeir watches her son, Hisham, who is just days old and was born prematurely, lying in an incubator at the neonatal intensive care unit of Nasser Hospital in Khan Younis, southern Gaza Strip, Thursday, June 19, 2025. (AP)
Seham Fawzy Khodeir watches her son, Hisham, who is just days old and was born prematurely, lying in an incubator at the neonatal intensive care unit of Nasser Hospital in Khan Younis, southern Gaza Strip, Thursday, June 19, 2025. (AP)
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Doctors and Moms Say Babies in Gaza May Die without More Formula, Blame Israel’s Blockade

 Seham Fawzy Khodeir watches her son, Hisham, who is just days old and was born prematurely, lying in an incubator at the neonatal intensive care unit of Nasser Hospital in Khan Younis, southern Gaza Strip, Thursday, June 19, 2025. (AP)
Seham Fawzy Khodeir watches her son, Hisham, who is just days old and was born prematurely, lying in an incubator at the neonatal intensive care unit of Nasser Hospital in Khan Younis, southern Gaza Strip, Thursday, June 19, 2025. (AP)

Seham Fawzy Khodeir watches as her son lies inside a dilapidated incubator and listens to his faint cry, mixed with the muted sound of the equipment.

The mother of six is increasingly concerned about the survival of Hisham al-Lahham, who was just days old, breathing with the help of equipment and being fed through a tube in his tiny nose.

Most alarming is that the medical-grade formula he needs to survive is running out.

"There is no milk," the 24-year-old mother told The Associated Press. He needs it to "to get better, to live and to see life."

Hisham is among 580 premature babies at risk of death from starvation across the war-battered Gaza Strip, according to the Gaza Health Ministry. Khodeir and others blame Israel’s blockade for the plight of their children. Doctors say that although some formula has been delivered, the situation is dire. Their desperation comes as the war in Gaza has been overshadowed by the Israel-Iran war.

"These babies have no time ... and no voice," said Dr. Ahmed al-Farah, head of the pediatrics and obstetrics department at Nasser Hospital, the main medical facility still partially functional in southern Gaza.

'An avoidable disaster'

Khodeir's son is one of 10 babies in incubators at Nasser's neonatal intensive care unit. Last week, al-Farah rang the alarm, saying the hospital’s stock of medical-grade formula was "completely depleted."

He said the tiny babies who relied on it would face "an avoidable disaster" in two to three days.

His pleas were answered, in part, by the delivery of 20 boxes of formula sent over the weekend by a US aid group, Rahma Worldwide. The new delivery is enough to cover the needs for the 10 infants for up to two weeks, al-Farah said.

Al-Farah, however, expressed concern about future deliveries, saying that it wasn’t guaranteed that more formula would be allowed into Gaza.

"This is not enough at all," he said. "It solved the problem temporarily, but what we need is a permeant solution: Lift the siege."

Meanwhile, fortified formula required for newborns is already out of stock at Al-Rantisi Hospital in Gaza City, its director, Dr. Jamil Suliman, said.

"Many mothers are unable to breastfeed due to severe malnutrition," he said, warning of a looming crisis.

Infants are among the hardest hit by Israel’s blockade, which started on March 2 with the complete ban of any food, water, shelter or medication.

Under mounting international pressure and repeated warnings of famine from the United Nations, Israel began allowing what Prime Minister Benjamin Netanyahu called "minimal" aid, starting May 19.

Since then, more than 1,000 tons of baby food, including formula, have entered Gaza, according to COGAT, the Israeli defense agency in charge of aid coordination in the Palestinian territory.

"Food for babies is certainly entering (the Gaza Strip), as the organizations are requesting it, we are approving it, and there is no withholding of food for babies," a COGAT spokesperson said.

But Gaza’s health officials say that for these babies, that aid hasn't included enough critical medicine, formula, medical equipment, and spare parts to keep the existing equipment operational.

The Palestinian Center for Human Rights said in a report Monday that fortified infant formula was nearly depleted from local markets, with several types already completely out of stock.

"Any limited quantities available in some pharmacies are being sold at skyrocketing prices, far beyond the purchasing power of most families," it said.

COGAT said the baby food is being distributed mostly through international organizations — not via the Gaza Humanitarian Foundation, an Israeli-backed private contractor that has drawn criticism from other groups. Palestinian witnesses and health officials say Israeli forces have opened fire on crowds heading to GHF sites. The Israeli military says it has fired warning shots.

Israel has defended its blockade

Israel has said the blockade aims to pressure Hamas into releasing the 50 hostages it still holds from its Oct. 7, 2023, attack on southern Israel that sparked the war. Fewer than half are still believed to be alive.

Israel has accused Hamas of siphoning aid, without providing evidence. The United Nations says there's been no significant diversion of aid.

Gunmen killed around 1,200 people, mostly civilians, and took 251 hostage on Oct. 7. Most of the hostages have been released by ceasefire agreements.

The war has unleashed unrelenting destruction, with more than 56,000 Palestinians killed and more than 131,00 wounded in Israel's offensive, according to Gaza health officials. The officials don't distinguish between combatants and civilians but say more than half the casualties are women and children.

The war and the blockade have sparked a humanitarian crisis, creating shortages of the most basic necessities and pushing Gaza’s health care system to the brink of collapse.

Seventeen of the enclave's 36 hospitals remain partially functioning, providing health care to more than 2 million people amid bombings, rising malnutrition rates and dwindling medical supplies.

"Starvation is increasing," said Jonathan Whittall, head of the UN's humanitarian affairs office for the occupied Palestinian territories. More than 110 children have been admitted for treatment for malnutrition every day since the start of this year, he said.

"Our warehouses stand empty while Israel restricts shipments to minimal quantities of mainly medical supplies and food," Whittall added.

A crisis at Gaza's hospitals

Human Rights Watch said in a recent report that all medical facilities in Gaza are operating in unsanitary and overcrowded conditions and have serious shortages of essential health care goods, including medicine and vaccines.

"Since the start of the hostilities in Gaza, women and girls are going through pregnancy lacking basic health care, sanitation, water, and food," said Belkis Wille, associate crisis, conflict and arms director at Human Rights Watch. "They and their newborns are at constant risk of preventable death."

The Health Ministry has repeatedly warned that medical supplies and fuel were running out at hospitals, which use fuel-powered generators amid crippling power outages.

Whittall said hospitals were forced to ration the little fuel they have "to prevent a complete shutdown of more life-saving services."

"Unless the total blockade on fuel entering Gaza is lifted, we will face more senseless and preventable death," he said.

Nasser Hospital was forced to cut off electricity for some departments, despite the nonstop flow of patients, as part of a plan to save fuel, said Ismail Abu-Nimer, head of engineering and maintenance.

Supplies have been running out amid the influx of wounded people, many coming from areas close to aid distribution centers, said Dr. Mohammad Saqer, Nasser's director of nursing.

"The situation here is terrifying, immoral, and inhumane," he said.

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