Ukrainian President Volodymyr Zelenskyy has declined a US proposal to acquire approximately 50% of Ukraine’s rare earth mineral rights.
The proposal, delivered by US Treasury Secretary Scott Bessent, was part of a bid to compensate for US assistance to Ukraine, reported the Financial Times, citing sources.
Zelenskyy is seeking better terms, including US and European security guarantees.
The proposal, initiated by US President Donald Trump, was presented during Bessent’s visit to Kyiv.
President Donald Trump had suggested the US was owed $500bn (Hrv20.78trn) worth of Ukrainian resources for its past military support.
However, the offer did not include provisions for future assistance, which Zelenskyy deemed necessary.
“We are still talking,” Zelenskyy stated at the Munich Security Conference. He emphasised that the current US offer was not aligned with Ukraine’s interests.
A senior Ukrainian official confirmed Kyiv’s efforts to negotiate improved terms, the report said.
Bessent described the proposal as an “economic agreement” aimed at enhancing US-Ukraine economic ties.
He assured that the Trump administration would increase its economic commitment to Ukraine, providing a “long-term security shield” after the conflict with Russia.
However, Ukrainian officials expressed concerns over the absence of future US security guarantees.
They questioned how the agreement would bolster Ukraine’s long-term security, receiving vague assurances of a US presence in return.
Another contentious issue is the proposal’s stipulation that disputes over mineral rights are to be resolved in New York.
Ukrainian officials doubted the enforceability of the proposal under New York law, as it was presented without prior warning.
Zelenskyy is open to exchanging Ukrainian resources for future security but insists on a formal, binding bilateral agreement, the report stated.
He has not signed the current proposal, seeking to involve European nations in mining activities.
The US proposal aligns with a “victory plan” Zelenskyy’s team has been developing to strengthen ties with the Trump administration and 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 lithium, titanium, and graphite that are essential for high-tech industries. However, many of these resources are in areas threatened by Russian forces.
