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Russia upset over US-Ukraine mineral deal

One of the biggest pieces of leverage China has over the United States in this tariff war is rare earth minerals, which it has stopped exporting.

The United States and Ukraine reportedly finally signed that deal, and China's ally, Russia, is not very happy about it.

China Cuts Exports

When the tariff war started, I had stated that China had the leverage, especially when it came to rare earth minerals and medication.

If China decided to cut our supply chain, it would really put us on the clock, and in mid-April, China did just that.

China more or less controls the rare earth minerals market, to the point that even the small amount of minerals we mine are sent to China for processing.

When China announced that it was cutting exports, Donald Trump was put on the clock or forced to find another way to get those minerals for things such as chips and EV batteries, just to name a few of the applications.

Ukraine Signs Deal

With it seeming obvious that Russia does not want a peace deal, President Zelensky was more or less forced to come back to the table and give Trump his mineral deal if he wants to continue to get aid from the United States.

On Wednesday, it was announced that he did just that, finally signing the deal he made with Trump.

Ukrainian Economy Minister and Deputy Prime Minister Yulia Svyrydenko stated, "On behalf of the Government of Ukraine, I signed the Agreement on the Establishment of a United States–Ukraine Reconstruction Investment Fund. Together with the United States, we are creating the Fund that will attract global investment into our country.”

Now, it will take some time for this all to come to fruition, but now the United States has a backup plan, and Russia was not happy.

Russia Pushes Back

After the deal was announced, Russian leaders went nuclear over the deal, threatening to erase Ukraine from the map.

Russian Security Council Deputy Chairman Dmitry Medvedev stated, “Trump has finally pressured the Kyiv regime to pay for US aid with mineral resources. Now, the country that is about to disappear will have to use its national wealth to pay for military supplies.”

Rep. Joe Wilson (R-S.C.), on the other hand, was delighted with the deal, stating, “President Trump’s US-Ukraine Minerals Deal is a masterstroke.”

This is a game changer for Ukraine, as the United States is now deeply invested in the country, and that is not good for Putin. Russia can make all the threats it wants, but now a full assault on Ukraine would likely be the start of WWIII, and I doubt even Putin is foolish enough to take that step.

By
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May 2, 2025
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