In a significant development, Ukrainian President Volodymyr Zelensky met with U.S. President Donald Trump in Washington last Friday, aiming to establish an agreement that grants the U.S. access to Ukraine’s rare earth mineral deposits. However, the meeting took an unexpected turn when Zelensky departed early after a heated exchange with Trump and Vice President JD Vance, leading to the announcement that the deal had not been finalized.
Zelensky had previously expressed hopes that this initial agreement would pave the way for further negotiations, emphasizing the importance of security guarantees from the U.S., a point he has been actively advocating for. Trump suggested that the agreement would help U.S. taxpayers recover funds given to Ukraine during the ongoing conflict, while also asserting that the responsibility for Ukraine’s security should primarily lie with Europe.
Details of the Proposed Agreement
On Wednesday, Ukrainian Prime Minister Denys Shmyhal revealed that the U.S. and Ukraine had come to an agreement that was to be published on Friday. This preliminary deal includes the establishment of an “investment fund” dedicated to Ukraine’s reconstruction. Shmyhal stated that both nations would manage this fund on an equitable basis.
According to the terms, Ukraine is set to contribute 50% of future revenues from state-owned mineral resources, as well as oil and gas, into this fund, which will go towards initiatives that foster Ukraine’s safety, security, and prosperity. Additionally, the agreement stipulates that the U.S. government will maintain a long-term financial commitment to support Ukraine’s economic stability, within the bounds of U.S. law.
“The US administration started with a deal that challenged Ukraine’s sovereignty, then pushed an exploitative one that would bankrupt the country,” said Tymofiy Mylovanov, former minister and head of the Kyiv School of Economics.
While Zelensky acknowledged the creation of the fund, he remarked to the BBC that it was “too early to talk about money.” The plan, as described, would allow the U.S. to own the maximum permissible share of the fund as dictated by U.S. law. However, disagreements over the deal’s stipulations have led to noticeable tensions between Trump and Zelensky, particularly regarding the initial U.S. request for $500 billion in mineral wealth, which appears to have been retracted.
Security Guarantees and Future Steps
President Zelensky has consistently sought a robust security guarantee from the U.S. as a condition for any agreement. However, during a press briefing, he indicated that no such guarantees had been established. “I wanted to have a sentence on security guarantees for Ukraine, and it’s important that it’s there,” he stated.
Zelensky expressed his willingness to walk away from the deal if satisfactory security assurances were not forthcoming. He asserted the need for a solid pathway, akin to NATO, to ensure Ukraine’s safety. Despite the absence of specific guarantees, the draft agreement does signal U.S. support for Ukraine’s pursuit of security assurances aimed at achieving lasting peace.
Trump responded by stating that U.S. security guarantees would be limited and suggested that the responsibility for Ukraine’s security should largely transfer to Europe. He also mentioned that having U.S. personnel present in Ukraine would inherently provide a degree of security.
As discussions continue, the finalized version of the agreement remains in the works. Zelensky plans to confront Trump directly regarding the U.S. commitment to supporting Ukraine in the future, while his aide, Mykhaylo Podolyak, clarified that only a framework agreement was expected to be signed, which would require further specifications regarding investment procedures, profit distribution, and security guarantees.
Ukraine is estimated to possess about 5% of the world’s critical raw materials, including substantial reserves of graphite, which is vital for electric vehicle batteries, as well as significant deposits of titanium and lithium. However, concerns persist regarding the accessibility of these resources, particularly given the ongoing issues of unexploded ordnance and landmine contamination in conflict-affected regions.
In response to the potential U.S.-Ukraine minerals agreement, Russian President Vladimir Putin remarked that he was prepared to offer resources for joint projects in territories occupied by Russia, claiming that Russia has significantly greater resources than Ukraine. Meanwhile, Kremlin spokesperson Dmitry Peskov commented on Zelensky’s visit, stating that it remains to be seen whether the intended agreement would be formalized.