Zelenskyy Rejects US Rare Minerals Deal, Insists on Security Guarantees

Mining Minerals (Image: Pexels)

Ukrainian President Volodymyr Zelenskyy has refused to approve a proposed agreement granting the United States access to Ukraine’s rare earth minerals, arguing that the deal prioritized American interests without ensuring security guarantees to deter future Russian aggression.

During discussions with US Vice President JD Vance at the Munich Security Conference on Friday, Zelenskyy directed his ministers not to sign the agreement, stating that it did not adequately protect Ukraine’s national interests.

''I didn’t let the ministers sign a relevant agreement because in my view it is not ready to protect us, our interest,'' Zelenskyy told The Associated Press on Saturday in Munich.

The proposal suggested that Ukraine’s rare earth minerals could serve “as compensation” for past US aid provided under the Biden administration, as well as payment for future assistance, according to current and former senior Ukrainian officials. However, the agreement reportedly failed to include specific security guarantees.

A senior White House official criticized Zelenskyy’s decision, calling it “short-sighted.”

Ukraine possesses significant reserves of critical minerals used in aerospace, defense, and nuclear industries. The Trump administration has expressed interest in accessing these resources to reduce US reliance on China, but Zelenskyy made it clear that any resource extraction must be directly linked to security assurances for Ukraine.

''For me is very important the connection between some kind of security guarantees and some kind of investment,'' Zelenskyy stated.

The agreement, presented to Ukrainian officials on Wednesday by US Treasury Secretary Scott Bassent during his visit to Kyiv, was described by a former senior Ukrainian official as unacceptable.

''It’s a colonial agreement and Zelenskyy cannot sign it,'' the official said.

White House National Security Council spokesman Brian Hughes did not explicitly confirm details of the offer but defended the US proposal, stating, ''President Zelenskyy is being short-sighted about the excellent opportunity the Trump administration has presented to Ukraine.''

With growing reluctance in Washington to approve further aid to Ukraine, Hughes argued that a minerals deal would allow American taxpayers to ''recoup'' financial support provided to Kyiv while simultaneously strengthening Ukraine’s economy.

He further emphasized that ''binding economic ties with the United States will be the best guarantee against future aggression and an integral part of lasting peace.'' Hughes added, ''The US recognizes this, the Russians recognize this, and the Ukrainians must recognize this.''

According to a senior official involved in the Munich talks, US representatives primarily focused on the commercial aspects of extracting the minerals and establishing a potential partnership with Ukraine. However, discussions did not address the valuation of Ukraine’s deposits, many of which remain unexplored or lie near active frontlines.

The proposal also lacked a clear strategy for securing mineral-rich areas in the event of ongoing Russian aggression. The official indicated that US negotiators did not have ''ready answers'' to this challenge and would need to develop a plan to safeguard extraction operations, personnel, and infrastructure.

Any agreement, the senior Ukrainian official stressed, must align with Ukrainian law and be acceptable to the public.

''Subsoil belongs to Ukrainians under the Constitution,'' Kseniiia Orynchak, founder of the National Association of Mining Industry of Ukraine, previously told the AP, suggesting that any deal would require public approval.