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 response to a number of individuals conversant in the matter.
Treasury Secretary Scott Bessent supplied Zelenskyy the deal throughout a go to to Kyiv on Wednesday, which got here after President Donald Trump advised the US was owed half a trillion {dollars}’ price of Ukraine’s sources in change for its help to the war-torn nation.
Zelenskyy needs American and European safety ensures to be tied on to any deal on the mineral reserves, in response to 4 individuals conversant in the US-Ukraine negotiations.
He’s additionally eager for different nations, 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 sources in change for previous army help, and didn’t comprise any proposals for related future help, in response to an individual conversant in the doc.
“We’re nonetheless speaking,” Zelenskyy mentioned in Munich on Saturday. “I’ve had totally different dialogues.”
Talking to reporters on the sidelines of the convention, Zelenskyy mentioned it was “not in our pursuits at the moment . . . not within the pursuits of sovereign Ukraine” to conform to the US deal because it at present stands.
A senior Ukrainian official instructed the Monetary Instances 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 wished Zelenskyy to signal earlier than Bessent returned to Washington, in response to 5 individuals conversant in 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 tip [with Kyiv] by rising our financial dedication” which might “present a long-term safety protect for all Ukrainians” as soon as Russia’s battle is over, Bessent mentioned.
“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 foul deal for Ukraine, a 3rd Ukrainian official conversant in the proposal mentioned it was “a Trump deal”. “That is Trump dealmaking,” the official mentioned. “It’s powerful.”
Ukraine’s foremost concern is the dearth of connection to broader safety ensures, in response to 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 could guarantee an American presence on Ukrainian soil — a imprecise response that left key questions unanswered, these individuals mentioned.
Bessent argued that the mere presence of People securing the mineral deposits’ websites could be sufficient to discourage Moscow.
One other sticking level is the doc’s specification that New York could be the jurisdiction during which disputes over the mineral rights are resolved, in response to two individuals conversant in the matter.
An individual near Zelenskyy mentioned 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 mentioned.
The doc shared by Brink was the identical one which Bessent later gave to Zelenskyy, in response to the particular person. It was headed “DRAFT AS OF FEBRUARY 7, 2025”. Zelenskyy’s staff 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 sources for future safety, the particular person near Zelenskyy mentioned. However the US proposal solely referenced previous help, not future, and a proper binding bilateral worldwide settlement is the one manner to make sure each side’ rights and pursuits are protected, they added.
After their assembly Zelenskyy instructed reporters that he would take into account the proposal however wouldn’t signal something at the moment.
“We’ll evaluate this doc and work swiftly to make sure our groups attain an settlement. The US is our strategic accomplice and we’re dedicated to finalising the small print,” Zelenskyy mentioned on the time.
Bessent mentioned after the assembly that Trump wished the deal to be carried out.
“I imagine this doc is essential from President Trump’s perspective in resolving this battle [with Russia] as quickly as attainable,” he mentioned. “We’ll present ensures of American help to the individuals of Ukraine. I imagine this can be a very sturdy sign to Russia about our intentions.”
Zelenskyy mentioned he wished to debate the prospect of a mineral rights deal additional on the Munich Safety Convention, which is going down 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 mentioned his authorized staff would evaluate the doc Bessent introduced in Kyiv to supply recommendation and counsel potential modifications. He described it as a memorandum between the US and Ukraine, moderately than a proper safety settlement.
Zelenskyy has not signed the deal as a result of he needs to get others, together with European nations, concerned in mining the minerals too, a European official briefed on the conferences mentioned.
“They’re below intense stress from the People on this,” the official mentioned.
The US proposal aligns with a “victory plan” that Zelenskyy’s staff has been growing since final summer season to deepen ties with the Trump administration by permitting the US entry to important minerals utilized in high-tech industries.
Ukraine has treasured minerals estimated to be price 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 sources are in areas that are both below Russian occupation or are susceptible to being captured by the Kremlin’s advancing forces, as they sit close to the entrance strains in Ukraine’s east.
