February 22, 2025 5:21 am
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Ukraine Rejects U.S. Proposal to Transfer 50% of Mineral Resources

Ukrainian President Volodymyr Zelensky has rejected a U.S. proposal that would have required Ukraine to transfer 50% of its mineral resources. This proposal was presented during a secret meeting on Wednesday, according to five sources. The U.S. news outlet The New York Times reported the incident.

Two European officials revealed that under this unusual agreement, the United States sought ownership of half of Ukraine’s mineral resources, including graphite, lithium, and uranium. U.S. Treasury Secretary Scott Basent stated on Sunday that the United States wanted access to these resources in exchange for the assistance it has provided to Ukraine. However, it remains unclear whether this deal would have included future military and financial aid.

A Ukrainian official and an energy expert reported that the Trump administration not only sought Ukraine’s mineral resources but also requested access to additional natural resources, including oil and gas. According to them, the proposal would have granted the U.S. the right to receive 50% of the revenue from Ukraine’s resource extraction—funds that are currently invested in the country’s military and defense industries.

While Zelensky has shown an open attitude toward discussions on Ukraine’s mineral resource management with allies, he rejected this particular deal because it did not include any guarantees from the U.S. regarding Ukraine’s security in its war against Russia.

A Ukrainian official confirmed that discussions are ongoing. However, the scope and implications of the proposal have led to tense debates between Kyiv and Washington, highlighting growing divisions over continued U.S. support and the potential resolution of the war.

On Wednesday, Basent met with Zelensky in Kyiv and demanded 50% of Ukraine’s mineral resources. This marks the first visit to Ukraine by a Trump administration official. The U.S. Treasury Department declined to comment on the discussions.

A second Ukrainian official stated that after reviewing the proposal, Ukraine decided to present a counteroffer to U.S. Vice President J.D. Vance during Zelensky’s meeting at the Munich Security Conference on Friday.

Speaking to journalists in Munich on Saturday, Zelensky confirmed that he had rejected a proposal from the Trump administration. Without specifying the terms of the deal, he simply stated that it did not include security guarantees.

Security guarantees are crucial because Ukrainians believe that the U.S. and the U.K. failed to uphold their commitments under an agreement signed at the end of the Cold War, which was meant to protect Ukraine. Under that agreement, Ukraine gave up its Soviet-era Russian nuclear weapons.

European diplomats have raised another concern, criticizing the proposal as reminiscent of the colonial era, when Western nations exploited smaller or weaker countries for their resources.

A Ukrainian official and an energy expert familiar with Basent’s proposal stated that the U.S. demanded 50% of the revenue from Ukraine’s resource extraction, as well as 50% of the revenue from selling new extraction licenses.

In the first half of last year, Ukraine’s state-owned oil and gas company Naftogaz reported profits exceeding half a billion dollars.

A Ukrainian official explained that, under the proposal, a portion of the U.S. revenue would be reinvested in Ukraine’s post-war reconstruction. Additionally, the deal would have granted the U.S. priority access to Ukraine’s mineral exports.

According to a list compiled by the Kyiv School of Economics, Ukraine has 109 significant mineral deposits, including oil and natural gas fields, as well as titanium, lithium, and uranium ore. However, some of these deposits are currently under Russian control or located near the front lines of the war.

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