The Trump administration is considering a streamlined minerals agreement with Ukraine to expedite a deal, deferring detailed negotiations on aspects such as the extent of U.S. ownership over Ukraine's vast mineral resources. Two sources familiar with the matter disclosed this information to Reuters on Wednesday.
This move follows Ukrainian President Volodymyr Zelenskiy's recent rejection of a detailed U.S. proposal that would have allocated 50% of Ukraine's critical minerals—graphite, uranium, titanium, and lithium—to the United States. Lithium, a key component in electric vehicle batteries, was a focal point of the discussions.
The rejection signaled that securing a comprehensive agreement would require more time, according to sources. However, U.S. President Donald Trump aims to establish a preliminary deal with Ukraine before deciding on additional military aid or facilitating formal peace talks between Ukraine and Russia to end the ongoing three-year war initiated by Moscow's invasion.
Trump’s Ukraine envoy, Keith Kellogg, is currently in Kyiv to negotiate a revised agreement and assess Ukraine’s needs in exchange for signing the deal. Zelenskiy confirmed a scheduled meeting with Kellogg on Thursday, emphasizing the importance of constructive engagement with the United States. When asked if the U.S. would continue pursuing the deal, a Trump adviser, speaking anonymously, commented on Zelenskiy, stating, "Absolutely, we need to get this guy back to reality."
The White House has not yet responded to requests for comment.
Despite ongoing tensions between Trump and Zelenskiy, the push for a minerals deal persists. Trump recently criticized Zelenskiy, calling him "a dictator without elections" after the Ukrainian leader suggested that Trump was influenced by Russian disinformation. This remark came in response to Trump’s claim that Ukraine initiated the war.
Over the past three years, the U.S. has provided tens of billions of dollars in military aid to Ukraine. Trump has asserted that U.S. investment in Ukraine’s mineral resources could help recoup some of that aid, proposing that Kyiv grant U.S. firms mineral concessions worth $500 billion. The sources indicated that Trump seeks to demonstrate to the American public that the U.S. is recovering its financial support in tangible ways.
A Less "Rapacious" Approach
It remains unclear whether the original U.S. proposal was intended as compensation for past aid or as leverage for future assistance. Zelenskiy rejected the offer, stating it was overly focused on U.S. interests and did not provide sufficient security guarantees for Ukraine.
"I can't sell our country," Zelenskiy said on Wednesday.
A third source confirmed that Ukraine is open to striking a deal with the Trump administration, provided it is structured in a way that does not appear "rapacious." Another source reiterated Kyiv’s willingness to negotiate but stressed the need for a more balanced agreement than what was initially proposed.
Details about who within the Trump administration drafted the initial proposal remain unknown. The revised approach is one of several strategies being considered at the White House, aiming to finalize an agreement in the coming weeks—a notably rapid timeline for such a complex industry, which typically involves negotiations between private companies and state entities rather than direct government-to-government deals.
Trump has repeatedly expressed frustration over the nature of U.S. aid to Ukraine, highlighting that most assistance is provided in grants, whereas European nations primarily extend loans. “The United States gets nothing back, while they get their money back,” he said.
Trump also criticized Zelenskiy’s rejection of the 50-50 minerals split, alleging without evidence that Kyiv had previously agreed to the terms. “And we had a deal based on rare earth and things, but they broke that deal… they broke it two days ago,” Trump claimed.
Learning from China’s Playbook
A revised, simplified deal would allow the U.S. to bypass significant legal and logistical challenges while leaving room for future negotiations on specifics, including revenue-sharing arrangements.
“The U.S. has not historically used natural resource-for-aid swaps, but it's a tried and tested tool in China’s minerals playbook,” said Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies.
Ukraine has a vested interest in deepening its economic and security ties with the United States while acknowledging Washington’s substantial investment in its future, according to Tyson Barker, former U.S. deputy special envoy for Ukraine’s economic recovery.
"The Ukrainians are more than willing to provide the United States with privileged access to critical mineral resources in recognition of the billions of dollars American taxpayers have contributed to Ukraine," Barker said. "This is something they have been strategizing about for some time."
Barker noted that Ukraine may also need to offer similar concessions to other key allies that provided significant support during the war, such as Canada, Britain, Japan, and the European Union.
Meanwhile, Russia also seeks to control Ukraine’s mineral wealth. Moscow's forces have already captured a fifth of Ukraine, including regions with rare earth reserves. Russian troops are now positioned less than four miles from a major Ukrainian lithium deposit.
Zelenskiy has emphasized the need for discussions on mineral deposits in territories occupied by Russia, questioning whether those resources would ultimately fall into the hands of Russian President Vladimir Putin and his allies, including Iran, North Korea, and China.
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