Trump just dealt Russia a devastating blow
A deal for Ukraine’s minerals could effectively end the war.
The minerals deal negotiated between the United States and Ukraine is a devastating development for Russia. Indeed, it is in some ways more important than any peace deal President Donald Trump might negotiate to end the fighting. Once implemented, it will mean that Russia has effectively lost the war.
Russian President Vladimir Putin wanted to conquer his neighbor. Instead, the United States has just gone into business with Ukraine — entering into, as the agreement puts it, “a durable partnership” with Kyiv to jointly develop Ukraine’s untapped minerals and other natural resources and pledging “a long-term financial commitment to the development of a stable and economically prosperous Ukraine.”
With this deal, the United States is now invested — literally, not figuratively — in what the deal calls “a free, sovereign and secure Ukraine.” That means the United States now has a massive financial incentive to help safeguard Ukraine’s independence. If Ukraine survives, the United States will stand to gain hundreds of billions of dollars; if Ukraine falls, we get nothing. After all, does anyone think that if Putin conquers Ukraine, he is going to repay the United States for the weapons we gave Ukraine to fight his troops? Of course not.
The deal creates “a Reconstruction Investment Fund” that will be jointly owned and managed by the two countries. Ukraine will contribute 50 percent of all revenue earned from the “future monetization” of all government-owned natural resource assets, including “minerals, hydrocarbons, oil, natural gas, and other extractable materials.” The fund will use this revenue to “invest in projects in Ukraine and attract investments to increase the development” of its natural resources, as well as “infrastructure, ports, and state-owned enterprises.”