Ukraine Rejects American Offer to Take Over 50% of its Mineral Wealth
Much of Ukraine’s mineral resources are concentrated in Russian-occupied territory (Wikimedia Commons).
The Ukrainian government rejected the Trump Administration’s proposal for the United States to take over 50 percent of Ukraine’s mineral wealth on February 15th, according to AP News. Ukrainian President Volodymyr Zelenskyy and Vice President J.D. Vance also met at the Munich Security Conference to discuss peace talks and future US support for Ukraine.
The exact details of the deal were unclear, but President Zelenskyy clearly believed them to be disadvantageous to Ukraine, saying “I didn’t let the ministers sign a relevant agreement because in my view it is not ready to protect us, our interests,” as per AP News. The deal does not give Ukraine many concrete benefits. The New York Times stated that it is unclear if the deal is intended to repay the United States for support that it gave Ukraine in earlier stages of the war, or if it is a down payment for future support.
Ukraine has reserves of 20 of the 50 minerals that the United States has listed as critical for its national security and economy, including titanium, lithium, graphite, zirconium, and lithium, reported The New York Times. Ukraine is estimated to have 109 significant mineral deposits. The proposed deal has received bipartisan support in the United States, with Senator Lindsey Graham (R-SC) saying, “This minerals agreement between the United States and Ukraine is a game changer, because President Trump can go to the American people and say Ukraine is not a burden, it’s a benefit.” Senator Chris Coons (D-DE) echoed the sentiment, saying “If this is an investment opportunity where American companies and other companies from Europe would be involved in mining and processing, so that we can be independent of Chinese sources of these strategic minerals — and if his helps deepen and strengthen our partnership to help ensure the security of Ukraine going forward ... that would be a positive thing.” The deal reflects the more transactional nature of U.S. foreign policy under President Trump, who has said that he “told [Ukraine] that I want the equivalent of like $500 billion worth of rare earth [minerals],” cited CNBC.
As AP News noted, Ukraine is preparing a counter-proposal to the deal, which it believes is too focused on American interests in the region, given that the deal does not provide Ukraine any security guarantees or concrete promises of military aid. Still, Ukraine is wary of any U.S. security promises, given the shadow of the agreement it made after the Cold War, where Ukraine surrendered nuclear weapons in exchange for promises of protection by the United States, Russia, and the United Kingdom, outlined the New York Times. These promises of protection failed to stop both Russia’s 2014 annexation of Crimea and its 2022 invasion of Ukraine. Many Ukrainians nonetheless view new security guarantees as necessary to achieving peace. Ukraine’s counter-proposal is expected soon.