Ukrainian President Volodymyr Zelenskyy has rejected a U.S. proposal granting access to Ukraine's rare earth minerals, citing a lack of security guarantees in return. The contentious proposal became a focal point during Zelenskyy's discussions with U.S. Vice President JD Vance, held on the sidelines of the Munich Security Conference on Friday. At the heart of the U.S. proposal was the notion of utilizing Ukraine's mineral resources as "compensation" for past and future support provided by the Biden administration, yet it offered no specific assurances for Ukraine's security, according to current and former senior officials.
Zelenskyy emphasized the necessity of linking any exploitation of Ukraine's minerals to security guarantees that would deter future Russian aggression. His firm stance reflects Ukraine's vast reserves of critical minerals, essential to industries such as aerospace, defense, and nuclear technology. Despite this potential wealth, much of it remains unexplored or close to conflict zones, complicating the situation further.
The Trump administration, growing weary of extending additional aid to Ukraine, saw the minerals deal as a potential means to "recoup" funds while bolstering Ukraine's economy. However, Zelenskyy directed his ministers not to finalize the agreement, criticizing it as disproportionately focused on U.S. interests.
"Subsoil belongs to Ukrainians under the Constitution."
— Kseniiia Orynchak, founder of the National Association of Mining Industry of Ukraine
Zelenskyy articulated his position clearly during talks with Vice President Vance.
"I think it's important that the vice president understood me that if we want to sign something, we have to understand that it will work."
— Volodymyr Zelenskyy
"For me is very important the connection between some kind of security guarantees and some kind of investment."
— Volodymyr Zelenskyy
A senior White House official described the U.S. proposal as "short-sighted," while a former senior official characterized it as a "colonial agreement" that Zelenskyy cannot afford to endorse.
"It's a colonial agreement and Zelenskyy cannot sign it."
— Former senior official
Nonetheless, Brian Hughes, a spokesman for the White House National Security Council, criticized Zelenskyy's decision.
"President Zelenskyy is being short-sighted about the excellent opportunity the Trump Administration has presented to Ukraine."
— Brian Hughes
In response to these developments, Ukraine is preparing a "counter proposal" which a senior Ukrainian official says will be delivered to the U.S. in "the near future." This move signals Kyiv's readiness to negotiate terms that more closely align with its national interests and security concerns.
The U.S. acknowledges the necessity of involving Ukraine, Russia, and Europe in these discussions, although Gen. Keith Kellogg has suggested that European involvement may not be essential at this stage. Zelenskyy underscored the importance of Ukraine being in a "strong position" when entering any negotiations to ensure sustained peace.
Despite these diplomatic tensions, the U.S. lacks "ready answers" regarding securing any mineral extraction operations in Ukraine, highlighting another layer of complexity in these discussions.
"I didn't let the ministers sign a relevant agreement because in my view it is not ready to protect us, our interest."
— Volodymyr Zelenskyy
The path forward requires collaborative effort between the U.S. and Ukraine to devise an acceptable solution that complies with Ukrainian law while addressing mutual interests.
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