Ukrainian President Volodymyr Zelenskyy has rejected a US proposal to take control of around 50% of the rights to Ukraine’s rare earth minerals, according to several sources familiar with the ongoing discussions. The deal, proposed by US Treasury Secretary Scott Bessent during his visit to Kyiv on Wednesday, comes after President Donald Trump suggested the US was owed half a trillion dollars’ worth of Ukraine’s resources as part of its assistance to the war-torn country. However, Zelenskyy is seeking a more favorable arrangement, reportedly working to negotiate a better deal, as confirmed by a senior Ukrainian official speaking to the Financial Times (FT).
The proposed agreement focuses on Ukraine’s critical mineral reserves, including valuable resources like lithium, titanium, and graphite, essential for high-tech manufacturing. These minerals, estimated to be worth trillions of dollars, are located in areas either under Russian occupation or vulnerable to capture due to the ongoing conflict. In light of this, Zelenskyy is seeking American and European security guarantees tied to any agreement, with hopes of ensuring broader involvement from other countries, particularly European Union (EU) states, in the exploitation of Ukraine’s natural resources.
“We are still talking,” Zelenskyy said in Munich on Saturday, confirming that the talks were ongoing. “I have had different dialogues.” During a meeting in Kyiv earlier in the week, Bessent presented a document that Trump hoped Zelenskyy would sign before Bessent returned to Washington. However, Zelenskyy expressed concerns over the lack of clear security assurances in the proposal, which led him to refrain from signing it immediately.
The document outlined a plan for deepening economic ties between Ukraine and the US, which Bessent described as an “economic agreement” aimed at intertwining the two nations’ economies and providing long-term security once the war with Russia ends. However, Zelenskyy’s officials expressed skepticism, particularly regarding the lack of concrete security guarantees. One Ukrainian official noted that the proposal appeared to be a “Trump deal,” emphasizing its toughness but also its lack of critical details, especially regarding Ukraine’s future security.
Another sticking point in the discussions is the jurisdiction outlined in the proposal for resolving disputes, which specifies New York as the location for any legal matters regarding the mineral rights. This raised further concerns among Ukrainian officials, who questioned the fairness and transparency of such a provision.
Despite the challenges, Zelenskyy acknowledged the importance of the deal and the ongoing negotiations. “We will review this document and work swiftly to ensure our teams reach an agreement. The US is our strategic partner and we are committed to finalizing the details,” Zelenskyy said after meeting with Bessent.
Zelenskyy’s desire to involve European nations in the resource extraction process reflects his broader strategy to maintain a diversified approach to Ukraine’s economic recovery and security post-war. At the Munich Security Conference, he discussed a counter-offer with US lawmakers, hoping to strike a deal that balances US involvement with greater international participation.
As the discussions unfold, Ukraine remains under intense pressure from the US to secure a deal, with both sides keen to finalize terms that would ensure long-term cooperation and stability in the face of ongoing Russian aggression. According to a European official briefed on the talks, Zelenskyy’s team is under mounting pressure from the US to move forward with the deal, but the president is determined to make sure that any agreement reflects Ukraine’s broader geopolitical interests.
