What we know about Ukraine-US minerals deal so far

Contents

• What are rare earth metals
• How the idea emerged
• Minerals agreement: What angered Trump
• Zelenskyy's position on the deal
• How the final document will look like
• Who will sign the document

What are rare earth metals

Rare earth metals include a group of chemical elements (scandium, yttrium, and lanthanides) with unique physical and chemical properties. Notably, China controls most of the global rare earth metal production.

These metals include lanthanides (15 elements: lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium). Also included are scandium (Sc) and yttrium (Y), which have similar physicochemical properties.

These metals are used in high-tech industries such as electronics, military production, aerospace technology, magnet manufacturing, batteries, lasers, optical glass, and more.

Ukraine has significant potential in rare earth metals. The main deposits and promising areas include the Mazurivske deposit, Dobrovelychkivka settlement (Kirovohrad region), the Ukrainian Shield, Donbas, the Kryvyi Rih Basin, and the Azov iron ore region.

Overall, Ukraine possesses significant reserves of rare metals, including:

• Lithium – about one-third of Europe’s total confirmed reserves, approximately 3% of the world’s resources.
• Graphite – among the top five countries in reserves.
• Titanium – ranks among the top ten global leaders, with the Stremyhorod deposit in the Zhytomyr region being one of the world's largest.
• Uranium ores – Ukraine ranks first in Europe and 11th in the world in terms of reserves.

The country has also large deposits of other critical resources, including manganese, iron, gold, lead, zinc, cobalt, nickel, copper, zirconium, and more.

Ukraine has long been extracting uranium, titanium, and graphite, while lithium mining is still under discussion. Further geological studies are needed for a more precise assessment of the resource base.

How the idea emerged

The idea of the rare earths agreement originates from President Volodymyr Zelenskyy's victory plan. He emphasized that Ukraine is rich in natural resources, including critical metals worth trillions of dollars.

He stressed that Ukraine’s deposits of critical resources, along with its globally significant potential in energy and food production, are among Russia's key objectives in the war.

"Ukraine proposes to the US, along with selected partners - including the European Union, of which Ukraine will be a part, and other global partners - to conclude a special agreement on the joint protection of Ukraine’s critical resources, joint investment, and the utilization of the economic potential. This is also peace through strength - economic strength," Zelenskyy said while presenting his victory plan.

As the Financial Times reported, this provision was essentially developed to attract Trump’s interest, which ultimately happened. The American president quickly picked up on the topic but began promoting it in a way that was most beneficial to him.

He said that the US could continue assisting Ukraine in exchange for Ukrainian rare earth metals. He then signed an executive order appointing Keith Kellogg as a special envoy for Ukraine and Russia, with whom Kyiv eventually discussed the rare earths issue.

"We are talking to them (Ukraine and Russia) right now, we are working on deals to have guarantees... We are telling Ukraine that they have really valuable rare earth metals," Trump said.

After that, discussions started about a potential agreement between Ukraine and the US. Trump said he wanted to make a deal with Kyiv under which Ukraine would supply the US with rare earth minerals needed for electronics in exchange for American aid.

Meanwhile, Zelenskyy said that Ukraine was open to American investments. But the deal needs fair conditions and security guarantees.

Minerals agreement: What angered Trump

The initial agreement proposed by the United States suggested splitting the revenues from the extraction of Ukrainian mineral resources on a 50/50 basis. The Ukrainian side rejected these terms. As Zelenskyy explained, if the revenue sharing applied to minerals extracted from territories yet to be liberated, particularly with US support and weaponry, Kyiv might have considered such an option.

In the second proposal, the US side suggested that Kyiv recognize a $500 billion debt from the provided aid and establish a special fund under the full control of Washington, to be filled with proceeds from resource extraction.

Since Ukraine's annual income from resource usage is approximately $2 billion, these funds would have been directed to this fund. The president of Ukraine, however, stated that such terms could not be considered a joint investment, as Ukraine would only be replenishing the fund while the US would benefit from the resources.

Trump, in his sharp statements, repeatedly claimed that he wanted to "reimburse" the aid provided to Ukraine, which he claimed amounted to "500 billion dollars." Later, he reduced the figure to 350 billion.

However, Zelenskyy dismissed these accusations. He emphasized that US aid was not 500 or 350 billion dollars but around 100 billion. Moreover, he added that he did not intend to recognize this aid as "debt," as he had agreed with then-US President Joe Biden's administration that it was grant-based assistance.

Zelenskyy also revealed that under the second proposal, Washington suggested that for every dollar they invested, Ukraine would return two, implying a 100% profitability rate for American investments. Zelenskyy questioned whether the US could achieve such a return even in the global arms market, where it is a key player.

During a press conference, the president stressed that neither proposed agreement included security guarantees for Ukraine, which Kyiv insisted on.

These statements of the Ukrainian leader angered Trump and his administration. He declared that he would "resurrect" the deal and baselessly called Zelenskyy a "dictator" with a 4% approval rating among Ukrainians. He also called for elections in a country under martial law.

"I think I'm gonna resurrect it. You know, we'll see what happens, but I'm gonna resurrect it or things are gonna not make him (Zelenskyy - ed.) too happy. And look, it's time for elections, haven't had an election in a long time," Trump said.

Trump’s harsh comments continued after, on February 12, 2025, US Treasury Secretary Scott Bessent brought a draft partnership agreement to Kyiv, which Zelenskyy refused to sign.

The president of Ukraine explained that the document did not align with Ukraine’s interests. Meanwhile, the White House called Zelenskyy’s refusal "short-sighted." Discussions between the parties continued. On February 19, Trump’s special envoy, Keith Kellogg, arrived in Kyiv, where Ukrainian officials also negotiated on the matter and presented the US with new proposals regarding the agreement.

Zelenskyy’s position on the deal

Reacting to Trump's sharp remarks, Zelenskyy said he was not offended by his words. He continued to insist that Ukraine needed security guarantees in the document, which were still absent.

"I'm not offended by Trump’s words. I would be if I were a dictator, but I'm not... Words, words will eventually pass. Maybe someday something good will be said about me. Honestly, what matters is what Ukrainians think of me," said the president of Ukraine.

He explained that the agreement was to be signed at the ministerial level and noted that he did not allow it because the deal did not align with Ukraine’s interests.

"There must be real investments, and the profits from them can be distributed. And there must also be security guarantees. These are still missing," the president said.

He repeatedly stressed the importance of protecting Ukraine so that rare earths and other minerals would not fall into Russian hands for free. He highlighted that such an agreement should benefit both Ukraine and American companies investing in extraction.

Later, according to RBC-Ukraine, during a phone conversation, Presidents Zelenskyy and Trump agreed that Ukraine would refine the draft partnership memorandum and submit it to the American side, which ultimately happened. Since then, the agreement has undergone changes.

How the final document will look like

Yesterday, several Western media outlets, including the reputable Financial Times, characterized the final version of the agreement reached by the parties. The US abandoned its demand for $500 billion in potential revenues from Ukrainian resources.

Journalists learned that the original proposal from Trump’s administration to create a reconstruction investment fund under 100% US control had been removed from the agreement.

The document stipulates that a fund will be established, into which Ukraine will allocate 50% of future revenues from mineral extraction, as well as oil and gas. The fund will invest in projects in Ukraine.

At the same time, the fund's activities will not affect resources already contributing to Ukraine’s state treasury, meaning it will not impact Naftogaz and Ukrnafta, Ukraine's largest oil and gas producers. However, the media stressed that the document contains no mentions of US security guarantees, which Kyiv initially insisted on.

Financial Times in Ukraine emphasized that the agreement reached is merely a "framework agreement." Today, Ukrainian Prime Minister Denys Shmyhal appeared on TV to explain that the agreement is indeed preliminary.

"As of today, this agreement is called the 'Agreement on Establishing the Rules and Conditions of the Investment Fund for Ukraine’s Reconstruction.' Essentially, it is a preliminary agreement with legal force. It sets the foundation for creating an investment fund for Ukraine’s reconstruction, where Ukraine and the US will manage and fund it equally," Shmyhal said.

He explained that the agreement is directly linked to security guarantees. Neither the president nor the government of Ukraine will consider signing it separately from security guarantees for Ukraine.

"Accordingly, Article 10 of this preliminary agreement states that this fund agreement constitutes an integral element of bilateral and multilateral agreements and specific steps for establishing lasting peace, strengthening economic and security resilience, and reflecting the goals outlined in the preamble of this agreement. The US government supports Ukraine’s efforts to obtain security guarantees for establishing lasting peace," Shmyhal explained.

The prime minister announced that the agreement has already been prepared, and today the Ukrainian government will review its text and authorize ministers to proceed with its signing.

"This agreement is about the future - future revenues. The Ukrainian government’s contribution is 50% of all proceeds from the future monetization of all relevant state-owned natural resource assets, as well as relevant infrastructure," said Shmyhal.

The US will also make corresponding contributions. This fund will invest funds from Ukraine and the US into Ukraine’s development, reconstruction, and security. The governments of Ukraine and the US will manage the fund jointly.

"All decisions will be made only by mutual agreement. That is, nothing can be decided in this fund’s operations without Ukraine’s approval. To avoid doubts about future revenue sources, they do not include current revenue sources that are part of Ukraine’s general budget income," Shmyhal emphasized.

So, existing deposits, facilities, licenses, and royalties are not subject to discussion when creating this fund. It concerns only future licenses and developments.

"Infrastructure for transportation or logistics may be used, potentially even existing infrastructure, but this will be discussed in a future agreement on the investment fund. We need to start drafting it immediately after signing this preliminary agreement," Shmyhal added.

This agreement is preliminary before Ukraine begins to work on the agreement on establishing this fund in depth with the involvement of international lawyers.

Who will sign the document

Earlier reports suggested that the agreement on Ukrainian resources would be signed by Ukraine's Foreign Minister Sybiha and US Secretary of State Rubio in Washington in the presence of Presidents Trump and Zelenskyy.

After the Ukrainian government authorizes ministers to sign this preliminary agreement today, and after the delegation visits the United States, where representatives of the Ukrainian government will be present and have the authority to sign the document.

“After Presidents Zelenskyy and Trump agree on security guarantees, agree on how we tie this preliminary agreement to the security guarantees from the United States for our country, a government representative will sign this preliminary agreement in the presence of the presidents,” Shmyhal said.

Next, work will begin on implementing approaches to security guarantees and on developing a specific agreement on establishing a joint fund.

On Tuesday evening, Trump confirmed that Zelenskyy plans to visit Washington to sign the agreement on rare earth metals.

"I hear that he's coming on Friday. Certainly, it's OK with me if he'd like to. And he would like to sign it together with me. And I understand that's a big deal, very big deal," Trump said.

When asked when Zelenskyy's visit to the United States would take place, the source told RBC-Ukraine that “preparations for the visit are underway” but no details were provided.

Zelenskyy has previously spoken about his intentions to meet with Trump in person before the White House chief meets with Putin. The president of Ukraine wants to talk about resolving the war with the American leader before Trump meets with the Russian president. Read more about Zelenskyy's potential visit to Washington in a separate RBC-Ukraine article.

Sources: Financial Times, Politico, Reuters, Axios, CNN, New York Times, and statements by Ukraine's Prime Minister Denys Shmyhal.