The Big Picture
Ukraine has rejected a U.S. proposal to own 50% of its rare earth minerals, according to a report by the Financial Times. President Volodymyr Zelenskiy is pushing for better terms and wants security guarantees to be tied to any agreement.
The U.S. has been seeking access to Ukraine’s critical mineral resources, which are essential for technology and defense industries. This request comes amid Washington’s continued military and economic support for Kyiv as it fights against Russia’s invasion.
What Happened
U.S. Treasury Secretary Scott Bessent presented the proposal to Zelenskiy in a draft contract during a meeting on Wednesday.
Zelenskiy did not sign the document, stating that he needed to review it further and consult other officials.
According to sources cited by FT, Ukraine wants U.S. and European security guarantees to be directly linked to any deal involving its mineral reserves.
A senior Ukrainian official told the newspaper that Kyiv is looking for a “better deal” rather than outright rejecting cooperation.
Why It Matters
Rare earth minerals are vital components in advanced technology, including military equipment, electric vehicles, and electronics.
The U.S. has been seeking to reduce its reliance on China, the world’s dominant supplier of rare earth elements.
Ukraine’s mineral resources could play a role in Western efforts to secure alternative supply chains.
However, Ukraine’s demand for stronger security commitments reflects its broader concerns over long-term U.S. and European military and economic support, especially as the war with Russia continues.
Ukraine’s Resource Position
U.S. Geological Survey (USGS) data indicates that Ukraine does not have significant known rare earth reserves.
However, Ukraine’s own geological agency has reported findings of rare earth minerals in several deposits, mainly in the eastern parts of the country, some of which are currently under Russian control.
Beyond rare earths, Ukraine holds reserves of other critical minerals, including titanium, lithium, and graphite, which are also crucial for global industries.
The Geopolitical Context
The Trump administration had previously signaled expectations that Ukraine would allow U.S. access to its natural resources as part of a broader strategic partnership.
In addition to mineral access, Washington has also encouraged Kyiv to purchase American energy exports.
The ongoing war with Russia has made Ukraine’s economic and security negotiations with Western allies even more critical.
What’s Next?
Neither the Ukrainian Embassy in Washington nor the White House National Security Council has commented on the reports.
Negotiations are expected to continue as Ukraine seeks stronger security assurances alongside economic agreements.
The outcome of these talks could shape not only Ukraine’s resource policies but also broader U.S. and European strategies in securing mineral supply chains amid growing global competition.
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