Ukrainian President Volodimia Zelensky rejected the Trump administration's offer to abandon half of the country's mineral resources in exchange for US support at a closure meeting on Wednesday. discussion.
According to two European officials, the unusual trade has recognized a 50% profit for all of Ukrainian mineral resources, including graphite, lithium and uranium, as well as all mineral resources, including graphite, lithium and uranium. Sho. An energy expert who is a Ukrainian official who explained the proposal said the Trump administration also sought Ukraine's energy resources.
According to another Ukrainian official, negotiations are continuing. Others, like others, spoke on the condition of anonymity, taking into account the sensitivity of consultations. However, the expansion of the proposal and the tense negotiations around it show the expanded crack between Kiev and Washington, both in US support and the potential end of the war.
The request for half of Ukrainian minerals came on Wednesday when U.S. Treasury Secretary Scott Bescent met Zelensky in Kiev, the first visit by Trump administration officials to Ukraine. The Treasury declined to comment on the negotiations.
After seeing the proposal, the Ukrainians decided that Zelensky would visit the security conference in Munich on Friday to review the details and provide opposals when he met with Vice President JD Vance.
It is not clear whether Us-style proposal was presented.
Zelensky spoke with Munich reporters on Saturday and admitted that he rejected a proposal from the Trump administration. He did not specify what the terms of the transaction were other than saying that it did not include a security guarantee from Washington.
“I can't see this connection in the documentation,” he said. “In my opinion, we are not ready to protect our interests.”
Security is expected as Ukrainians believe that the US and the UK were unable to meet their obligation to protect the country under the agreement signed at the end of the Cold War when Ukraine gave up Russian nuclear weapons on its territory. Guarantee is important.
European diplomats faced another objection. They complained that colonialist negotiations were blown away, an era in which Western countries exploited small or weak countries for their goods.
In Munich, the Gulf also appeared in the Trump administration's plan to end wars between the United States and its European allies. Many of them said they were more confused than before they arrived.
The Ukrainian official and energy expert said he explained to Mr Bescent's offer. It said it covers not only half of Ukrainian minerals, but also other natural resources such as oil and gas. Officials also said the proposal gave the US a claim for half of Ukraine's revenues from resource extraction and sales of new extraction licenses.
Taking millions of dollars in revenue from the Ukrainian government in response to these demands is now almost entirely invested in the country's defense. In the first half of last year, Ukraine's state-owned oil and gas giant Naftogaz reported profits of over $5 billion.
The idea of ​​harnessing Ukraine's mineral resources began to take shape last summer. Zelensky's government is trying to appeal to Trump's business-oriented approach and fearing to follow his promise to cut off military and financial aid to Ukraine, bringing Ukraine key minerals to American aid I decided to pitch a transaction that essentially trades. .
The Ukrainian president presented the idea to Trump at a September meeting in New York, and the proposal gained support from leading politicians, including Republican Sen. Lindsey Graham. Also, American businessmen came later, including Trump's wealthy friend, Ronald S. Lauder, who expressed interest in investing in Ukraine's mineral resources.
Kyiv always maintained access to natural resources as always, in exchange for strong security guarantees from Washington. However, one Ukrainian official said the proposal did not give such a commitment and instead framed access to Ukrainian resources as expired payments for past American military and financial aid.
Ukraine has 109 important mineral deposits, including titanium, lithium and uranium ores, according to a list compiled by the Faculty of Petroleum Economics. However, some are already in territories under Russian occupation or near the forefront.
Their value is uncertain. Apart from the repeated risks of Russian aggression after the ceasefire, the risks intended to reduce transactions with the US – a deeply entrenched issue in the Ukrainian business environment is to much of the country's post-independence history It hindered investment.
These include inexplicable regulations and insider trading by Ukrainian businessmen and politicians, which could limit profits from the arrangement. Even before the war, few investors were involved in the mining trade in Ukraine.
However, there is a precedent for Ukraine to mix safety, business and the United States under Trump. In his first term, in 2017 he signed a contract to allow Ukraine to purchase coal from Pennsylvania and replace coal from Ukrainian mines that were lost under Russian occupation after the 2014 invasion.
Former diplomat and deputy chief of staff under the Ukrainian president, Costantin Yerizieyev said that Trump saved jobs in the swing state of Pennsylvania at the time the deal was hit. I remembered what I had declared. For Kyiv, the agreement opened the door for Trump to provide lethal military aid to Ukraine, with approval to sell the Javelin Anti-Tank missile.
At the time, Ukrainian officials saw it as a success, Yelisieiev said. “I've made sure Trump is not a worthy person, he's a profit and money person,” he said, Ukraine can find a way to work with him in security.
However, the contract currently under discussion is elevating the approach in a way that allows Russia to pass propaganda victory by throwing wars as a battle of natural resources rather than Ukraine's independence or democracy, he said. .
“It's even more important to say this is protecting democracy and defeating Putin,” he said.
