Ukrainian President Volodymyr Zelenskyy has rejected a US proposal to acquire a 50 per cent stake in Ukraine’s rare earth mineral rights.
The proposal, initiated by US President Donald Trump and presented by US Treasury Secretary Scott Bessent during a recent visit to Kyiv, was intended to compensate for past US assistance to Ukraine.
Zelenskyy is reportedly seeking more favourable terms, including concrete security guarantees from both the US and European nations.
He voiced his concerns at the Munich Security Conference, stating: “We are still talking,” and emphasised that the current US offer does not align with Ukraine’s interests.
President Trump had previously suggested that the US was owed US$500 billion for its past military support, a sum he believes reflects the value of Ukraine’s vast resources.
However, the current proposal lacks provisions for future aid, which Zelenskyy considers crucial.
Bessent described the proposal as an “economic agreement” designed to strengthen economic ties between the US and Ukraine.
He assured that the Trump administration would increase its economic commitment to Ukraine, providing a “long-term security shield” following the conflict with Russia.
Despite Bessent’s assurances, Ukrainian officials have expressed concerns about the absence of future US security guarantees.
They questioned how the agreement would bolster Ukraine’s long-term security, receiving only vague assurances of a US presence in return.
Another point of contention is the proposal’s stipulation that any disputes over mineral rights will be resolved in New York.
Ukrainian officials have raised doubts about the enforceability of the proposal under New York law, particularly as it was presented without prior warning or consultation.
Zelenskyy remains open to exchanging Ukrainian resources for future security but is insisting on a formal, binding bilateral agreement.
He is also exploring the possibility of involving European nations in future mining activities.
The US proposal aligns with a “victory plan” that Zelenskyy’s team has been developing to strengthen ties with the Trump administration.
It follows an offer for a mineral partnership in exchange for security guarantees, announced earlier this month.
Ukraine’s mineral reserves, valued at several trillion dollars, include crucial resources such as lithium, titanium, and graphite, essential for high-tech industries.
However, a significant portion of these resources are located in areas currently threatened by Russian forces, adding further complexity to any potential agreement.
