Discussion about this post

User's avatar
Ruud van  der Salm's avatar

just when the front lines seem to be stabilizing done, the US clocks Ukraine on the back of the head.

Expand full comment
Christian Thwaites's avatar

Hi Julius…. new here but came via Battleground Ukraine….I was in Kyiv for 3 weeks recently, but I am no expert.

Not sure the Molotov/Ribbentrop comparison is right. US has no plans to take any part of Ukraine. The mining/mineral rights idea is almost total fantasy.

It takes decades for a mine to come online…. longer than any horizon that Trump has in mind.

US mining stocks haven’t moved on any of this news. They don’t have the capacity to start large scale operations in another continent. The US could demand licenses for other operators, like Rio Tinto, but the public opprobrium attached would be high and shareholders would almost certainly object. U.S. mining stock prices haven’t moved on any of this news. They are at the same prices as they were in mid-2021

Ukraine’s mineral exports are around $5 billion. Companies would have to assume large price or production increases to see a 100x return in anyone’s lifetime. If Trump keeps throwing out numbers like $500 bn, eventually someone will explain that the returns don’t add up. I know we think there are no more adults left in any room, but the realities are that the mineral angle is a very long proposition, and I don’t think U.S. companies are enthralled by the idea.

I also find the events of the last week depressing. Trump’s methods are crude, but the bluster soon turns to another target. He loses interest quickly and capitulates quietly…the 2017 tariffs for example, or Mexico, Canada and Columbia recently. But Ukraine may hold more cards than it seems right now. The EU may come through. China may also want the mineral deals & could offer a much better deal. Then the power dynamic changes very quickly.

Expand full comment
7 more comments...

No posts