Janice R. Andrews
Ukrainian President Volodymyr Zelenskyy has rejected a proposed agreement with the United States that would grant access to Ukraine’s rare earth minerals, citing concerns over insufficient security guarantees and an imbalance favoring U.S. interests. The decision, announced during the Munich Security Conference, has sparked criticism from U.S. officials, who labeled it “short-sighted.”
The deal, presented by U.S. Treasury Secretary Scott Bassent during a visit to Kyiv, aimed to allow the U.S. to exploit Ukraine’s vast reserves of rare earth minerals—critical for aerospace, defense, and nuclear industries—as compensation for past and future aid. However, Zelenskyy argued that the proposal lacked specific security assurances to protect Ukraine from potential Russian aggression.
“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. He emphasized the need for a clear connection between security guarantees and foreign investments, stating, “For me, it is very important the connection between some kind of security guarantees and some kind of investment.”
The rejection has highlighted tensions between the two nations, particularly as the U.S. seeks to reduce its reliance on China for rare earth minerals. Ukraine’s reserves, largely unexplored and located near conflict zones, present a lucrative opportunity. However, the U.S. proposal reportedly failed to address how these resources would be secured amid ongoing Russian hostilities.
A senior Ukrainian official, speaking anonymously, criticized the deal as “colonial,” asserting that it prioritized U.S. economic interests over Ukraine’s sovereignty. Meanwhile, White House National Security Council spokesman Brian Hughes defended the proposal, calling it an “excellent opportunity” for Ukraine to strengthen its economy and ties with the U.S. He argued that binding economic partnerships would serve as a deterrent against future aggression.
The U.S. has grown increasingly reluctant to provide additional aid to Ukraine, with Hughes suggesting that a minerals deal would allow American taxpayers to “recoup” funds sent to Kyiv. However, Ukrainian officials remain wary, emphasizing that any agreement must align with national laws and gain public support. Kseniiia Orynchak, founder of the National Association of Mining Industry of Ukraine, reiterated that “subsoil belongs to Ukrainians under the Constitution,” underscoring the need for popular approval.
The rejection underscores the complexities of balancing economic opportunities with national security concerns. As discussions continue, the U.S. and Ukraine must navigate these challenges to forge a partnership that benefits both nations while addressing Ukraine’s urgent need for security and stability.
