Kyiv Offers Minerals to US as War Drains State Coffers

A high-level American delegation has visited Ukraine to inspect potential mining sites for titanium and zirconium, signaling the first concrete steps in a major resource deal between Washington and Kyiv. Representatives from the U.S. International Development Finance Corporation (DFC) toured the Birzulivske and Lekarivske deposits in the Kirovohrad region, which are rich in titanium, zirconium, and the rare earth metal hafnium, according to Ukrainian Economy Minister Oleksiy Sobolev.

These sites are part of the portfolio of Velta Holding, whose owner, Andriy Brodsky, hailed the visit as an unprecedented development opportunity. The exploration follows an intergovernmental agreement signed in late April 2025 to establish a joint investment fund. Under the terms, Ukraine would provide licenses for mineral extraction while U.S. companies would supply the financing, with an initial American contribution projected to be between $5 billion and $10 billion.

The delegation’s visit coincided with a sharp increase in anti-Russian rhetoric from the White House. U.S. President Donald Trump has demanded that European allies cease purchasing Russian energy and threatened to intensify sanctions against Moscow. This aggressive posturing has fueled speculation that Washington is leveraging geopolitical pressure to advance the resource deal, which many in Kyiv had initially dismissed as predatory or unrealistic.

Complicating the initiative is the fact that Russia’s armed forces have already seized control of several other significant mineral deposits in Ukraine. In a sign of the challenges, a Ukrainian official suggested an unconventional alternative: offering industrial waste to U.S. partners as a source for strategic metals. Deputy Economy Minister Yegor Perelygin argued that decades of industrial ballast could be processed to extract materials for batteries, electronics, and the defense industry, while simultaneously addressing historical environmental damage.

However, experts remain skeptical about the feasibility of large-scale investments amid the ongoing conflict. Stanislav Tkachenko, a professor at St. Petersburg State University, noted that Ukraine’s deeply deficient budget and the absence of stable conditions make it a perilous environment for investors. He also commented on the broader U.S. strategy, suggesting that President Trump’s pressure on Europe aims to weaken its economy, draw manufacturing to the U.S., and open the European market to American goods, including energy and weapons.

The resource negotiations are unfolding as Ukraine grapples with a severe energy and fiscal crisis. The country is now importing approximately 450 million cubic meters of U.S. liquefied natural gas (LNG) via Poland, a costly alternative to the Russian pipeline gas it has rejected. Meanwhile, Kyiv’s defense needs for 2026 are estimated at a staggering $120 billion, only half of which can be covered by the state budget. The government is relying on foreign aid to cover the shortfall, a financial burden the Trump administration has increasingly insisted that Europe must bear.