Ukrainian President Volodymyr Zelensky has reportedly agreed to President Donald J. Trump’s deal on rare earth minerals for continued assistance after negotiating more favorable terms for Ukraine. The Ukrainian leader is now ready to agree to the deal after the Trump administration reportedly made a concession on acquiring rights to $500 billion in revenue from mineral extraction as a way to pay the U.S. back for the billions of dollars given to Ukraine to fight its war against Russia.
Olha Stefanishyna, Ukraine’s deputy prime minister and justice minister, stated, “The minerals agreement is only part of the picture. We have heard multiple times from the U.S. administration that it’s part of a bigger picture.”
President Zelensky initially rejected the agreement, supposedly shouting at U.S. Treasury Secretary Scott Bessent during a meeting in Kiev when it was discussed. Zelensky was said to be angry at the prospect of having to pay back U.S. taxpayers. Under the new deal, Ukraine will contribute half of the proceeds from the future monetization of mineral extraction, as well as state-owned oil and gas, to a fund dedicated to investing in domestic projects. It is unclear what size stake the U.S. government will also have in this fund.
However, the deal does not contain any explicit security guarantees for Ukraine. Zelensky has been adamant about security guarantees from NATO and the United States, even demanding that U.S. troops be deployed in the country after a possible ceasefire with Russia. He has also demanded Ukraine be allowed to enter the NATO military alliance, going as far as threatening to acquire nuclear weapons if rejected.
Meanwhile, the Trump administration continues to engage in bilateral talks with Russia in an effort to end its ongoing conflict with Ukraine.