The United States has presented a controversial proposal to Ukraine, focusing on accessing the country's vast reserves of critical minerals. This proposal became a key topic during discussions between Ukrainian President Volodymyr Zelenskyy and US Vice President JD Vance at the Munich Security Conference on Friday. According to senior officials familiar with the talks, the proposal did not offer any specific security guarantees in return, which has led to significant reluctance from the Ukrainian side.
Ukraine is home to extensive reserves of critical minerals essential for industries such as aerospace, defense, and nuclear technology. The US proposal suggested using these rare earth minerals as compensation for the support already provided by the Biden administration and as payment for future aid. However, President Zelenskyy has directed his ministers not to sign off on the agreement, citing that the document was overly focused on US interests.
The proposal was initially delivered to Ukrainian officials by US Treasury Secretary Scott Bassent during his visit to Kyiv on Wednesday. President Zelenskyy stressed that any agreement regarding the exploitation of Ukraine's minerals must include security guarantees to deter future Russian aggression. "For me, it is very important the connection between some kind of security guarantees and some kind of investment," Zelenskyy stated.
Despite the US proposal's focus on economic benefits, Ukraine is preparing a counter-proposal to be delivered to the United States shortly. The potential value of these mineral deposits remains largely unexplored due to their proximity to conflict zones, complicating discussions further.
There is also a geopolitical dimension to this proposal, as the Trump administration has shown interest in accessing these minerals to reduce dependency on China. However, concerns have been raised about how these deposits would be secured amid ongoing Russian aggression. As President Zelenskyy told AP, the current US offer resembles "a colonial agreement," making it unacceptable for Ukraine.
"Subsoil belongs to Ukrainians under the Constitution." – Kseniiia Orynchak, founder of the National Association of Mining Industry of Ukraine
Ukraine's determination to retain control over its resources is echoed by Kseniiia Orynchak, reiterating that any agreement must respect Ukrainian sovereignty over its mineral wealth. Meanwhile, a senior White House official has criticized Zelenskyy's decision to reject the deal as "short-sighted," arguing that it represents an excellent opportunity for Ukraine.
"President Zelenskyy is being short-sighted about the excellent opportunity the Trump Administration has presented to Ukraine." – Brian Hughes, White House National Security Council spokesman
The US officials involved in discussions with their Ukrainian counterparts in Munich were focused on commercial aspects, particularly exploring how a partnership could be formed to tap into these mineral resources. They emphasized that such a partnership could allow American taxpayers to recoup the money sent to Kyiv while also boosting Ukraine's economy.
"It will bring money and security." – Volodymyr Zelenskyy, Ukrainian President
President Zelenskyy has highlighted the necessity of linking mineral exploitation with tangible security assurances. He conveyed to Vice President Vance that any agreement must be practical and beneficial for Ukraine's long-term interests. "I think it's important that the vice president understood me that if we want to sign something, we have to understand that it will work," he asserted.
"You can have the Ukrainians, the Russians, and clearly the Americans at the table talking," – Gen. Keith Kellogg, Trump's special envoy for Ukraine and Russia
Gen. Keith Kellogg suggested that effective dialogue among all parties involved could pave the way for a mutually beneficial agreement. However, achieving consensus remains challenging amid differing priorities and expectations.