In a recent development, Ukraine has turned down a proposal from the United States to acquire 50% of the country’s rare earth minerals. President Volodymyr Zelenskiy is seeking to negotiate a more favorable deal.
US Treasury Secretary Scott Bessent presented the draft contract to Zelenskiy during their meeting on Wednesday. However, Zelenskiy did not sign the document, stating that he needed to study it further and consult with others.
Zelenskiy is pushing for US and European security guarantees to be directly tied to any agreement on the mineral reserves. A senior Ukrainian official mentioned that Kyiv is looking for a “better deal”.
The Trump administration has indicated that it expects Ukraine to grant access to its natural resources, including critical minerals, in exchange for military and economic support against Russia, which invaded in 2022.
While rare earth minerals are relatively abundant globally, they are often not found in concentrations that make extraction and refining economically viable. Outside of China, the largest reserves are located in Brazil, India, Australia, Russia, Vietnam, and the US.
US Geological Survey data shows that Ukraine has no major known rare-earth reserves. However, the country’s geological agency has identified some deposits, primarily in areas under partial Russian control. Ukraine also has reserves of other critical minerals, including titanium, lithium, and graphite.
The Ukrainian Embassy in Washington and a spokesperson for the White House National Security Council did not respond to requests for comment.
