James Waterhouse
Ukrainian correspondent
Report fromkirovohrad Regiongetty Images
As part of the ceasefire negotiations, the US and Ukraine negotiated a contract to jointly exploit the country’s natural resources.
High-ranking Ukrainian and US officials today held a conference in Saudi Arabia to discuss how the war in Ukraine will end.
The United States says it is to agree to a “framework” for a ceasefire and an ultimate peace agreement.
For Kiev, it is also an opportunity to curb Washington and his muscles in a process that is not yet involved.
It proposes an air and naval ceasefire in the first ceasefire, and seeks to revive the vital mineral trade that Ukrainian President Voldy Zelensky “signs at any time.”
Ukraine’s hope is that with the new US approval, Russia will also be under pressure to compromise.
“70% of our important minerals are still underground,” Ihor Semko explains, taking a tour of Zavallya quarry, the largest graphite quarry in Europe, which he is in charge of.
In the quiet of the countryside of Central Ukraine, this artificial canyon is a by-product of the 61-year mining industry. The lake is sandwiched between rust, clay and beige brown layers, gradually excavated on the Earth.
“We currently have 7 million tons of graphite ore remaining, meaning 12 more years of work,” Ihor says in the direct style he expects from the director of the graphite factory.
However, heavy steel from Soviet-era miners remains dormant for 11 months a year.
The reason for this is that factories are losing money as nervous investors withdraw in an ongoing war.
This is why Zelensky provided its country’s natural minerals as part of its ceasefire agreement with the US.
The proposal is considered a jointly owned cash pot that will earn 50% of Ukraine’s profits from key minerals and receive 50% of profits from oil and gas. The money is then invested in the country’s recovery.
“If Americans invest in a 50-50 partnership, that’s beneficial,” Ihor says. “There’s new jobs, workers’ salaries, and owner’s income.”
“If that’s not beneficial to Ukraine, I don’t think there will be any discussion about the agreement at all.”
Getty Images
US-Ukraine relations worsened after ceasing to testify between President Trump and Zelensky in an oval office
What Ukrainian leaders couldn’t predict was how hostile the US position was.
In return to giving the US a slice of future wealth, Zelensky wanted security guarantees – military guarantees if Russia breaks a future ceasefire.
However, the White House has offered nothing and instead retracted important military support to force Ukraine to compromise.
It seems to have worked.
US President Donald Trump believes that just American companies are digging for critical minerals will resolve Russia’s once again invasion of Ukraine.
US companies didn’t exactly shut out Russian President Vladimir Putin last time, but Zelensky has no choice but to agree for now.
joemcnally/bbc
Graphite is used in products such as batteries, solar panels, and electric vehicle motors.
The graphite from the Zavallya quarry is processed in a vast refinery, a little away from the canyon.
At that height, up to 60,000 tonnes of this month passed here, and now it is about 5,000.
They are divided into various grades before being sold worldwide to make products such as batteries, solar panels, motors found in electric vehicles.
As in most years, it is an industrial ghost town.
This is why Chief Engineer Valerii Kharkovets welcomes investment in all forms.
“These agreement is more economical than the military, so security guarantees are unlikely,” he says.
“However, if foreign companies are involved, these Ukrainian territories may remain intact.”
It could take decades for Ukraine and the US to make profits from key minerals. However, Kiev must secure more than just an investment in Saudi Arabia.
As the report suggests, Hercules’ diplomatic efforts are equally necessary if the mineral agreement is not sufficient to win the Trump administration.
Neither Ukraine nor its European friends can afford the repeat of the word exchanges we saw in our oval offices.
Additional reports by Svitlana Libet and Pratiksha Ghildial.
