Ukraine and US Fail to Finalize Rare Earth Minerals Agreement
On Friday, President Volodymyr Zelensky of Ukraine held a meeting with US President Donald Trump in Washington, aiming to sign a deal allowing the US to access Ukraine’s rare earth mineral resources. Nonetheless, the discussions took a surprising shift, resulting in a tense argument with Zelensky, Trump, and Vice President JD Vance. After Zelensky left prematurely, the White House confirmed that no deal was finalized.
Zelensky had earlier conveyed hope that this «initial» agreement might lead to enhanced collaboration. Yet, he acknowledged that Ukraine still hadn’t obtained any security assurances from the US—a crucial point for him. Trump contended that the agreement could enable American taxpayers to «recover their funds» from the aid given to Ukraine during the conflict, but emphasized that Europe should assume the main role in ensuring Kyiv’s security.
Details of the Agreement Terms
On Wednesday, Ukrainian Prime Minister Denys Shmyhal announced that Kyiv and Washington had finalized a draft of the agreement, which was released on Friday morning. The deal outlined the creation of an «investment fund» to support Ukraine’s reconstruction efforts.
Shmyhal mentioned that the fund would be overseen «equally» by both countries. According to the agreement, Ukraine would contribute 50% of its prospective earnings from publicly owned mineral resources, oil, and gas to the fund. The generated funds would be directed towards projects designed to bolster Ukraine’s security, stability, and economic development.
The US, in turn, pledged a long-term financial commitment to fostering a stable and prosperous Ukraine, subject to US law. The agreement also stipulated that the US would own the maximum share of the fund permitted under American regulations.
Conflicts Regarding Mineral Rights and Financial Conditions
Tensions between Trump and Zelensky appear to have escalated over the specific terms of the minerals deal. Initially, the US sought a $500 billion claim on Ukraine’s mineral wealth, a demand that Zelensky rejected. Reports indicate that this request was later withdrawn.
Tymofiy Mylovanov, a former Ukrainian minister and leader of the Kyiv School of Economics, claimed that Washington initially suggested a setup that would have jeopardized Ukraine’s sovereignty and risked economic failure. However, he observed that the US has since adjusted its position, now proposing a more equitable agreement centered on co-ownership, with no direct claims related to previous aid. He suggested that this could potentially be advantageous for Ukraine.
Trump has highlighted the financial perspective, claiming on Tuesday that the US has given Ukraine roughly $300 billion to $350 billion in aid and that a minerals agreement could help recoup this expenditure. Conversely, the Kiel Institute, a German research organization, estimates that the real US support totals $119 billion.
Are Security Assurances Part of the Agreement?
An important issue for Zelensky has been the insertion of clear security assurances from the US. On Wednesday, he confirmed that these guarantees had not been obtained.
«Including a provision on security guarantees for Ukraine was essential,» Zelensky commented.
In response to queries about potentially walking away if security assurances weren’t included, he answered: «I seek a NATO pathway or an equivalent solution. Without security guarantees, a ceasefire won’t be feasible, and nothing will operate effectively.»
Despite the lack of direct security commitments, the agreement includes language indicating US support for Ukraine’s pursuit of security guarantees to achieve lasting peace.
Zelensky insisted that Ukraine would not conclude the agreement until he and Trump arrived at a consensus on security assurances and devised a way to incorporate them into the preliminary deal. Trump, on the other hand, minimized the necessity of direct US security guarantees, asserting that these obligations should now fall to Europe. He mentioned that the involvement of American workers in Ukraine would provide «automatic security.»
Zelensky initially proposed the idea of a minerals agreement as a way to offer the US a concrete motivation to maintain its support for Ukraine. Trump has implied that, in return for granting mineral access, Ukraine would ensure the «right to keep fighting,» and that the US would continue providing military gear and ammunition «until an agreement with Russia is achieved.»
The US president has additionally asserted that Russia is willing to permit European peacekeepers in Ukraine. However, Russian Foreign Minister Sergei Lavrov has rejected this option.
When Will the Agreement Be Signed?
Trump initially announced that the agreement would be finalized during Friday’s White House meeting. Although Ukrainian Prime Minister Shmyhal verified that the final draft of the agreement was ready, Zelensky’s adviser, Mykhaylo Podolyak, explained that only a framework agreement was meant to be signed.
No agreement was signed, though. Instead, the meeting escalated into a clash between Trump and Zelensky in the Oval Office. At one juncture, an irate Trump accused Zelensky of not showing enough gratitude for US aid and cautioned that he was «risking World War Three.»
«You need to finalize a deal, or we’re done,» Trump allegedly told Zelensky. «You lack leverage.»
Zelensky countered by asserting that there could be «no compromises» with Russian President Vladimir Putin.
Shortly after and earlier than planned, Zelensky departed from the White House. Subsequently, the White House declared that the agreement was not completed, with Trump personally calling off the signing event.
Trump later took to Truth Social, alleging that Zelensky had «disrespected the US in its esteemed Oval Office» and remarked: «He can return when he is prepared for peace.»
Currently, it remains uncertain whether the agreement will be signed or when it might occur.
Ukraine’s Mineral Wealth
Kyiv estimates that Ukraine’s reserves account for about 5% of the world’s «critical raw materials.» This comprises around 19 million metric tons of verified graphite reserves, positioning Ukraine as one of the top five global providers of this essential mineral for electric vehicle battery manufacturing.
Additionally, Ukraine has significant deposits of titanium and lithium. The country also claims to hold substantial reserves of rare earth elements—17 minerals essential for military technology, wind turbines, and electronic devices—though some experts dispute the exact scale of these reserves.
Further complicating the situation, some of the mineral-abundant regions in Ukraine are currently under Russian control. Economy Minister Yulia Svyrydenko states that mineral deposits valued at approximately $350 billion are situated in areas occupied by Russia.
Another obstacle to mineral extraction is the widespread presence of unexploded landmines. Experts estimate that around 25% of Ukraine’s landmass is contaminated, particularly in the war-torn eastern regions.
There is also the issue of time. Even if the agreement is finalized, it could take years before the extraction and export of these resources yield tangible economic benefits.
«These resources aren’t stored in a warehouse ready for delivery—they require development,» Mylovanov commented. «US investment could eventually be advantageous for all involved.»
What is Russia’s Response?
Russian President Vladimir Putin has not yet made any remarks regarding the reported specifics of the US-Ukraine agreement. However, on Monday, he informed Russian state television that Moscow is ready to «offer» mineral resources to American firms for joint ventures, which includes mining in Russia’s «new territories»—referring to the occupied regions of eastern Ukraine.
Putin dismissed the potential US-Ukraine deal as insignificant, stating that Russia «undoubtedly has, I want to emphasize, significantly more of these resources than Ukraine.»
«Regarding the new territories, we are prepared to welcome foreign collaborators for the development of these areas, which have rejoined the Russian Federation,» he added.
In the meantime, Kremlin spokesman Dmitry Peskov indicated on Tuesday that the situation is still evolving: «We’ll see whether [Ukraine and the US] will sign this agreement or something else. No official announcements have been made on this issue yet.»