Ukraine and US Fail to Finalize Rare Earth Minerals Agreement
On Friday, Ukrainian President Volodymyr Zelensky met with US President Donald Trump in Washington to sign an agreement granting the US access to Ukraine’s rare earth mineral deposits. However, the meeting took an unexpected turn, ending in a heated exchange between Zelensky, Trump, and Vice President JD Vance. Following Zelensky’s early departure, the White House announced that no agreement had been signed.
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, Prime Minister Denys Shmyhal of Ukraine declared that Kyiv and Washington had completed a draft version of the agreement, which was made public on Friday morning. The arrangement proposed the establishment of an “investment fund” aimed at aiding Ukraine’s rebuilding initiatives.
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, meanwhile, promised ongoing financial support to help build a stable and thriving Ukraine, in accordance with US law. The terms of the agreement also indicated that the US would hold the largest allowable portion of the fund 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 Reports indicate that this request was later withdrawn.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, who previously served as a Ukrainian minister and now leads the Kyiv School of Economics, stated that Washington’s original proposal threatened Ukraine’s sovereignty and risked economic downfall. However, he observed that the US has adjusted its stance, presenting a fairer agreement centered on joint ownership, without making claims on past assistance. He believes this revised approach could eventually advantage Ukraine.
Trump has emphasized the financial aspect, stating on Tuesday that the US has provided between $300 billion and $350 billion in aid to Ukraine and that a minerals deal could help recover these funds. However, the Kiel Institute, a German think tank, estimates that actual US assistance amounts to $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.
When asked whether he would abandon the agreement if security assurances were not provided, he responded: “I want to secure a NATO path or something similar. Without security guarantees, there will be no ceasefire, and nothing will function.”
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 maintained that Ukraine would not finalize the agreement until he and Trump reached an understanding on security assurances and determined how to integrate them into the preliminary deal. Trump, however, downplayed the idea of direct US security guarantees, stating that such responsibilities should now be shouldered by Europe. He added that the presence of American workers in Ukraine would offer “automatic security.”
The concept of a minerals agreement was originally introduced by Zelensky as a means to provide the US with a tangible incentive to continue supporting Ukraine. Trump has suggested that, in exchange for mineral access, Ukraine would secure the “right to continue fighting” and that the US would keep supplying military equipment and ammunition “until a deal with Russia is reached.”
The US president has also asserted that Russia is amenable to the presence of European peacekeepers in Ukraine. However, Russian Foreign Minister Sergei Lavrov has rejected this notion.
When Will the Agreement Be Signed?
Trump initially stated that the deal would be signed at Friday’s White House meeting. While Ukrainian Prime Minister Shmyhal confirmed that a final version of the agreement had been prepared, Zelensky’s adviser, Mykhaylo Podolyak, clarified that only a framework agreement was set to be signed.
Ultimately, no agreement was signed. Instead, the gathering turned into a clash between Trump and Zelensky in the Oval Office. During the heated exchange, Trump accused Zelensky of not showing enough gratitude for US support and cautioned him against “risking World War Three.”
“You need to make a deal, or we’re out,” Trump reportedly told Zelensky. “You don’t have the leverage.”
Zelensky, in response, insisted 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 posted on Truth Social, accusing Zelensky of having “disrespected the US in its cherished Oval Office” and stating: “He can come back when he is ready for peace.”
At this point, it remains unclear whether or when the agreement will be signed.
Ukraine’s Rich Mineral Resources
Kyiv estimates that Ukraine holds around 5% of the world’s “critical raw materials.” This includes approximately 19 million metric tons of confirmed graphite reserves, placing Ukraine among the top five global suppliers of this mineral, which is crucial for electric vehicle battery production.
Moreover, Ukraine boasts considerable deposits of titanium and lithium. The nation also asserts it possesses large reserves of rare earth elements—17 minerals vital for military tech, wind turbines, and electronic devices—although the precise extent of these reserves is contested by some experts.
Adding to the complexity, certain mineral-abundant regions of Ukraine are presently under Russian control. Economy Minister Yulia Svyrydenko has indicated that mineral deposits with an estimated value of $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 are not sitting in a warehouse waiting for shipment—they must be developed,” Mylovanov explained. “If the US invests, it could ultimately benefit all parties.”
What Has Been 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 open to involving foreign partners in developing these areas, which have rejoined the Russian Federation,” he stated.
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.”
