U.S. President Donald Trump announced on Saturday that the United States is \"pretty close\" to reaching an agreement with Ukraine regarding the sharing of revenue from Ukrainian rare earth minerals and other natural resources. This deal is part of ongoing efforts to bring an end to the conflict between the two nations.
Despite the optimism from the U.S. side, sources indicate that the draft deal may \"not be the one President Volodymyr Zelenskyy would accept.\" A source familiar with the negotiations told CNN, \"It is a strange offer to try and take from a country that is a victim of war, more than it costs to pay for its defense.\" Ukrainian state broadcaster Suspline reported that work on the document continued \"all night,\" but progress was stalled by issues surrounding \"security guarantees.\"
President Zelenskyy has previously rejected demands from Trump's administration for $500 billion in mineral wealth from Ukraine to repay Washington for three years of aid, emphasizing that the U.S. has offered no specific security guarantees. Nonetheless, Zelenskyy confirmed on Friday that teams from both Ukraine and the U.S. are still working together to finalize an agreement.
The proposed deal envisions Washington receiving 50 percent of Ukraine's critical minerals, including graphite, uranium, titanium, and lithium—the latter being a key component in electric car batteries. However, Ukrainians are striving to negotiate amendments, as the current draft \"does not foresee any American obligations, while Ukraine is expected to provide everything,\" according to another source quoted by CNN.
Tightening Relationship or Deepening Rift?
Earlier this week, Trump aides—Secretary of State Marco Rubio, special envoy Steve Witkoff, and National Security Advisor Mike Waltz—met with senior advisers to Russian President Vladimir Putin in Saudi Arabia for preliminary talks aimed at ending the conflict. This meeting faced criticism from Zelenskyy for excluding Ukraine and other European allies. In a radio interview, Trump defended the talks and dismissed Zelenskyy as negotiating \"with no cards.\" He further warned Zelenskyy to \"move fast\" in negotiations or risk not leading a nation, to which Zelenskyy responded, \"I can't sell our country.\"
Rare earth elements are crucial for various consumer technologies, including cellphones, hard drives, and electric and hybrid vehicles. If the deal is signed, a U.S. official familiar with the negotiations stated it \"would reduce U.S. dependency on China.\" The same official also noted that the draft deal provides America with financial guarantees as well as security guarantees for Ukraine.
Cui Zheng, deputy director and associate professor at the Research Center for the Economies and Politics of Transitional Countries at Liaoning University, highlighted the significance of rare earths in the global supply chain. \"China holds a dominant position in the global rare earth supply chain, while the U.S. relies heavily on imports of critical minerals such as rare earths,\" Professor Cui told CGTN. He added, \"China has gradually tightened its export controls on rare earth minerals, leading to concerns about potential supply disruptions for the U.S. defense and high-tech industries.\"
Professor Cui further elaborated that the deal could alleviate the financial burden on the United States and transform aid into economic benefits. He emphasized the long-term profits through control over mineral development rights for the U.S., even after the conflict ends, ensuring that the raw materials needed for U.S. military production can be secured.
Reference(s):
Trump says close to minerals deal with Ukraine. Will Zelenskyy accept?
cgtn.com
