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Ukrainian President Volodymyr Zelenskyy has turned down a US offer to acquire approximately 50% of the rights to Ukraine’s rare earth minerals, seeking a more favorable arrangement, as reported by multiple sources acquainted with the discussions.
The proposal from US Treasury Secretary Scott Bessent was made during a trip to Kyiv on Wednesday, following Trump’s assertion that the US was entitled to half a trillion dollars’ worth of Ukraine’s resources in return for its aid to the conflict-ridden nation.
Zelenskyy aims to connect American and European security assurances directly to any agreement concerning the mineral reserves, according to three individuals familiar with the ongoing US-Ukraine talks.
He also expresses interest in involving other nations, particularly EU member states, in future exploitation of natural resources.
“We are still in discussions,” Zelenskyy stated in Munich on Saturday. “I’ve engaged in various dialogues.”
A senior Ukrainian official informed the Financial Times that Kyiv is “pursuing a more advantageous agreement.”
During Bessent’s office visit in Kyiv, he presented a document that Trump requested Zelenskyy to sign prior to Bessent’s return to Washington, as per five sources familiar with the situation.
Before engaging in private discussions with Zelenskyy for approximately an hour, Bessent characterized the proposal as an “economic agreement” aimed at “further integrating our economies.”
The Trump administration is committed to “standing firmly [with Kyiv] by enhancing our economic support,” which would “offer a long-term security framework for all Ukrainians” once the war with Russia concludes, Bessent noted.
“We discovered that the specifics did not address [future US security guarantees],” another Ukrainian official relayed to the FT.
When asked if the deal was unfavorable for Ukraine, a third Ukrainian official familiar with the proposal described it as “a Trump deal.” The official remarked, “This is a Trump strategy. It’s tough.”
Ukraine’s primary worry is the absence of a link to broader security guarantees, as noted by three individuals who analyzed the proposal.
Ukrainian officials inquired how the agreement would bolster their nation’s long-term security, only to receive vague assurances that it would guarantee an American presence on Ukrainian territory, leaving critical questions unresolved.
Bessent contended that the mere presence of US personnel protecting the mineral sites would suffice to dissuade Moscow.
Another contentious point is the stipulation in the document that New York would resolve disputes regarding mineral rights, according to two individuals knowledgeable about the matter.
Following their meeting, Zelenskyy informed media that he would consider the proposal but would refrain from signing anything at that moment.
“We will examine this document closely and act quickly to ensure our teams reach an agreement. The US is our strategic partner, and we are devoted to finalizing the specifics,” Zelenskyy stated.
Bessent mentioned afterward that Trump is eager for the agreement to be finalized.
“From President Trump’s viewpoint, this document is crucial in resolving this conflict [with Russia] as swiftly as possible,” he claimed. “We will offer assurances of American support to the citizens of Ukraine. I view this as a significant signal to Russia regarding our intentions.”
Zelenskyy indicated his desire to discuss the mineral rights deal further at the Munich Security Conference taking place this weekend.
During a meeting with US Vice President JD Vance in Munich on Friday, he presented a counter-offer that he also shared with US legislators on the conference sidelines.
In a Friday speech in Munich, Zelenskyy stated that his legal team would evaluate the document Bessent provided in Kyiv to offer recommendations and propose potential adjustments. He clarified that it should be regarded as a memorandum between the US and Ukraine rather than a formal security pact.
Zelenskyy has withheld his signature on the deal as he seeks to involve other parties, including European countries, in the mineral extraction process, as noted by a European official familiar with the discussions.
“They are experiencing significant pressure from the Americans on this matter,” the official stated.
The US proposal aligns with a “victory plan” that Zelenskyy’s team has been crafting since last summer, aimed at strengthening relations with the Trump administration by granting the US access to critical minerals essential for high-tech sectors.
Ukraine possesses valuable minerals estimated to be worth trillions of dollars, including lithium, titanium, and graphite, all of which are vital for producing high-tech goods. However, many of these resources are located in areas currently under Russian control or vulnerable to capture by advancing Russian forces, particularly near the front lines in eastern Ukraine.
