Ukraine Rejects U.S. Demand for Half of Its Mineral Resources, It’s a ‘no’ to US bid for rare earth minerals
Volodymyr Zelenskyy, the President of Ukraine, has rejected a proposal from the United States for access to Ukraine’s rare earth minerals. The proposal involved the U.S. gaining a 50% ownership stake in Ukraine’s mineral resources in return for U.S. assistance. Zelenskyy said that the proposal was too focused on U.S. interests and did not offer any specific security guarantees for Ukraine. He told The Associated Press that he didn’t allow ministers to sign the agreement because it was not ready to protect Ukraine’s interests. A senior White House official called Zelenskyy’s decision “short-sighted”.
The Trump administration’s proposal suggested the U.S. would receive half of Ukraine’s mineral assets, including graphite, lithium, and uranium, as compensation for past and future support against Russian aggression. The administration was also reportedly interested in Ukraine’s energy resources. According to NBC News, the Trump administration suggested deploying U.S. troops to provide security for the minerals if a peace deal with Russia is made.
Zelenskyy wants any deal regarding Ukraine’s mineral reserves to be directly tied to security guarantees from the U.S. and Europe. He indicated that Ukraine is working on a counterproposal that would offer Washington more access to the country’s natural resources, but would also bolster U.S. security guarantees for Ukraine. He told reporters that he had not agreed to the Trump administration’s proposal because it’s not ready yet and that security guarantees were not part of the U.S proposal.
Ukraine possesses significant reserves of critical minerals that are used in the aerospace, defense, and nuclear industries. The Trump administration has expressed interest in accessing these resources to reduce dependence on China. While the USGS indicates Ukraine has no major known rare-earth reserves, the country’s geological agency has identified them in a few mineral deposits, mostly in areas in the east of the country that are partially under Russian control. Ukraine has also identified reserves of other critical minerals like titanium, lithium, and graphite.
