Ukraine rejects Trump bid to take rights to half its mineral reserves

Ukrainian President Volodymyr Zelenskyy has rejected a US bid to take possession of round 50 per cent of the rights to his nation’s uncommon earth minerals and is making an attempt to barter a greater deal, in line with a number of folks accustomed to the matter.

Treasury Secretary Scott Bessent provided Zelenskyy the deal throughout a go to to Kyiv on Wednesday, which got here after President Donald Trump prompt the US was owed half a trillion {dollars}’ value of Ukraine’s assets in change for its help to the war-torn nation.

Zelenskyy desires American and European safety ensures to be tied on to any deal on the mineral reserves, in line with 4 folks accustomed to the US-Ukraine negotiations.

He’s additionally eager for different international locations, together with EU states, to be concerned in future pure useful resource exploitation.

However the deal proposed by Trump and delivered by Bessent solely referenced the US getting Ukrainian assets in change for previous navy help, and didn’t include any proposals for related future help, in line with an individual accustomed to the doc.

“We’re nonetheless speaking,” Zelenskyy stated in Munich on Saturday. “I’ve had totally different dialogues.”

Talking to reporters on the sidelines of the convention, Zelenskyy stated it was “not in our pursuits at present . . . not within the pursuits of sovereign Ukraine” to comply with the US deal because it at present stands.

A senior Ukrainian official instructed the Monetary Occasions that Kyiv was “making an attempt to barter a greater deal”. 

Throughout his go to to the presidential workplace in Kyiv this week Bessent introduced a doc that Trump needed Zelenskyy to signal earlier than Bessent returned to Washington, in line with 5 folks accustomed to the matter.

Talking to reporters earlier than he and Zelenskyy mentioned the deal privately for roughly an hour, Bessent described it as an “financial settlement” with Kyiv to “additional intertwine our economies”. 

The Trump administration would “stand to the top [with Kyiv] by growing our financial dedication” which might “present a long-term safety protect for all Ukrainians” as soon as Russia’s warfare is over, Bessent stated.

“Once we seemed on the particulars there was nothing there [about future US security guarantees],” one other Ukrainian official instructed the FT.

Requested whether or not it was a nasty deal for Ukraine, a 3rd Ukrainian official accustomed to the proposal stated it was “a Trump deal”. “That is Trump dealmaking,” the official stated. “It’s powerful.” 

Ukraine’s principal concern is the dearth of connection to broader safety ensures, in line with three individuals who have reviewed the proposal.

Ukrainian officers requested how the settlement would contribute to their nation’s long-term safety, however had been solely instructed it might guarantee an American presence on Ukrainian soil — a imprecise response that left key questions unanswered, these folks stated.

Bessent argued that the mere presence of Individuals securing the mineral deposits’ websites can be sufficient to discourage Moscow.

One other sticking level is the doc’s specification that New York can be the jurisdiction wherein disputes over the mineral rights are resolved, in line with two folks accustomed to the matter.

An individual near Zelenskyy stated that US ambassador Bridget Brink introduced him with the doc containing the proposal shortly earlier than Bessent’s arrival in Kyiv, with out prior warning.

Kyiv didn’t imagine the proposal was enforceable below New York regulation, the particular person stated.

The doc shared by Brink was the identical one which Bessent later gave to Zelenskyy, in line with the particular person. It was headed “DRAFT AS OF FEBRUARY 7, 2025”. Zelenskyy’s group had been instructed he was anticipated to signal it on Wednesday throughout Bessent’s go to.

The US embassy didn’t instantly reply to a request for remark.

Ukraine helps the idea of exchanging Ukrainian assets for future safety, the particular person near Zelenskyy stated. However the US proposal solely referenced previous help, not future, and a proper binding bilateral worldwide settlement is the one means to make sure either side’ rights and pursuits are protected, they added.

After their assembly Zelenskyy instructed reporters that he would contemplate the proposal however wouldn’t signal something at the moment.

“We are going to assessment this doc and work swiftly to make sure our groups attain an settlement. The US is our strategic companion and we’re dedicated to finalising the small print,” Zelenskyy stated on the time.

Bessent stated after the assembly that Trump needed the deal to be accomplished.

“I imagine this doc is necessary from President Trump’s perspective in resolving this battle [with Russia] as quickly as doable​,” he stated. “We are going to present ensures of American help to the folks of Ukraine. I imagine it is a very sturdy sign to Russia about our intentions​.”

Zelenskyy stated he needed to debate the prospect of a mineral rights deal additional on the Munich Safety Convention, which is happening this weekend.

At a gathering with US vice-president JD Vance in Munich on Friday, he made a counter-offer which he additionally mentioned with US lawmakers on the sidelines of the discussion board.

In a speech in Munich on Friday, Zelenskyy stated his authorized group would assessment the doc Bessent introduced in Kyiv to supply recommendation and recommend potential adjustments. He described it as a memorandum between the US and Ukraine, fairly than a proper safety settlement.

Zelenskyy has not signed the deal as a result of he desires to get others, together with European nations, concerned in mining the minerals too, a European official briefed on the conferences stated.

“They’re below intense strain from the Individuals on this,” the official stated.

The US proposal aligns with a “victory plan” that Zelenskyy’s group has been creating since final summer season to deepen ties with the Trump administration by permitting the US entry to vital minerals utilized in high-tech industries.

Ukraine has treasured minerals estimated to be value a number of trillion {dollars}, together with lithium, titanium and graphite, all of that are essential for manufacturing high-tech merchandise. However many of those assets are in areas that are both below Russian occupation or are liable to being captured by the Kremlin’s advancing forces, as they sit close to the entrance strains in Ukraine’s east.