Ukrainian President Volodymyr Zelensky has publicly rejected an offer from the Trump administration that would have granted the United States a 50% stake in Ukraine’s vast mineral resources, including graphite, lithium, and uranium. The proposal, which was tied to continued U.S. military and financial aid, did not include security guarantees, a key requirement for Kyiv.
The deal, which also reportedly included claims on Ukrainian energy resources such as oil and gas, was presented by U.S. Treasury Secretary Scott Bessent during a visit to Kyiv on Wednesday—the first by a Trump administration official since the start of the war. Negotiations are ongoing, with Zelensky expected to present a counterproposal when he meets Vice President JD Vance at the Munich Security Conference on Friday.
Absence of security commitments from Washington
Speaking to reporters last Saturday, Zelensky acknowledged that he had turned down the offer, though he did not disclose its full terms. He emphasized that the absence of security commitments from Washington made the proposal unacceptable.
For Ukraine, security assurances remain a non-negotiable issue. Many Ukrainians believe that the U.S. and the U.K. failed to uphold their commitments to protect the country under an agreement signed at the end of the Cold War, when Ukraine gave up the Russian nuclear weapons on its territory.
Concerns Over Economic and Political Consequences
European diplomats have also voiced strong objections to the U.S. proposal, likening it to colonial-era exploitation. A Ukrainian official and an energy expert noted that the offer extended beyond mineral rights, covering other natural resources and potentially granting the U.S. a significant share of Ukraine’s earnings from resource extraction and licensing.
Such an arrangement, critics argue, could severely impact Ukraine’s economic sovereignty. With much of the country’s revenue currently directed toward national defense, handing over half of its resource earnings could jeopardize its ability to sustain the war effort.
The Origins of the Proposal
Discussions over leveraging Ukraine’s mineral wealth for U.S. support began last summer. Facing the possibility of Trump cutting off aid, Zelensky’s government sought to appeal to his business-first approach by proposing a trade of critical minerals in exchange for security commitments.
During a September meeting in New York, Zelensky introduced the concept to Trump, gaining traction among some political figures in Washington. However, Kyiv remained firm that any resource deal must include robust security guarantees—a condition absent from the latest American proposal.
Ukraine’s Resource Wealth and Investment Challenges
Ukraine possesses 109 significant mineral deposits, including titanium, lithium, and uranium, as well as substantial oil and natural gas reserves. However, some of these assets lie in Russian-occupied territories or near active combat zones, complicating their economic potential.
Further complicating matters, Ukraine’s investment climate has long been hindered by excessive regulations and insider dealings among political elites. Even before the war, foreign investors showed limited interest in Ukrainian mining opportunities.
Precedent for Economic-Security Deals
This is not the first time Ukraine has mixed security considerations with economic agreements under Trump. In 2017, Kyiv struck a deal to purchase coal from Pennsylvania, replacing supplies lost to Russian occupation. That agreement was seen as mutually beneficial: Trump could claim he was protecting American jobs in a crucial swing state, while Ukraine secured approval for lethal aid, including Javelin anti-tank missiles.
However, the current proposal is far more extensive. Critics warn that if Ukraine were to accept such a deal, it could allow Russia to frame the conflict as a battle for natural resources rather than a fight for sovereignty and democracy.
“It’s crucial that the world sees this war as a struggle for democracy and against authoritarianism,” said Kostiantyn Yelisieiev, a former diplomat and deputy chief of staff in Ukraine’s government. “We must not allow it to be reduced to a mere competition over resources.” As negotiations continue, Kyiv remains focused on securing the military and financial aid it needs—while ensuring that any agreements safeguard its long-term security and economic independence.