[Donald Trump. Photo Credit to Pixabay]

President Zelenskyy has refused a deal proposed by US President Donald Trump that would grant the United States partial ownership of Ukraine’s rare earth resources in exchange for military support, but negotiations continue.

In early February, US Treasury Secretary Scott Bessent traveled to Kyiv to meet with President Zelenskyy. 

There, he proposed a deal reportedly ordered by President Trump that requested 50% ownership and revenue from Ukraine’s rare earth minerals as compensation for past military and economic support during the war.

Rare earth resources are underground minerals such as neodymium, lanthanum, cerium and many others.

In 2025, these materials are considered more valuable than diamonds due to their crucial role in manufacturing electronics.

These materials are used in almost every technology, electronic device, and automated system from phones to computers, and magnets to cars.

Trump has been closely eyeing these valuable minerals, seeing them as both an economic opportunity and a way to counter China, which has the most rare earth reserves with an estimated 4.4 million tons.

Even though the US has rare earth deposits in states such as Nebraska, they have limited domestic extraction due to concerns about air and land pollution.

Instead, they have preferred to import from other countries to preserve their own environment.

Because of deteriorating US-China relations, the US has turned its attention to Ukraine, another major rare earth producer, which supplies about 5% of the world’s total.

Bessent explained that this would be a “win-win situation,” as the US would gain a boosting economy, while Ukraine would have international investment in their war-damaged economy.

He suggested that by agreeing to this cooperation, the US would help end the war, fulfilling Trump’s campaign promise.

The US administration reportedly placed substantial pressure on Zelenskyy, urging him to sign the deal.

However, contrary to their expectations, Zelenskyy refused to sign immediately.

He said the proposal represented too rapid a change considering the vital role rare earth minerals play in Ukraine’s economy.

Zelenskyy also disputed the valuation, stating the US military support was closer to 100-200 billion dollars, not 500 billion dollars, which he called an exaggeration.

The biggest concern, though, was the lack of security guarantees for Ukraine.

What Ukraine wants in exchange for the rare earth minerals is a concrete guarantee that the United States will prevent Russia from regrouping and launching another attack on Ukraine, along with admission into NATO.

These points were not mentioned specifically in the current deal, and Zelenskyy firmly stated he would not “sell Ukraine” for this uncertain agreement.

Trump expressed anger in response.

He began publicly criticizing Zelenskyy on social media, writing on his Truth Social post that he is a “dictator” and that he has “done a terrible job, [and now] his country is shattered.”

Even Trump’s advisors began publicly encouraging Ukraine to sign the deal, claiming that especially during this war, a positive relationship with the US is extremely crucial to achieve the peaceful end to the war that Ukraine desires.

Trump continued pressing Zelenskyy for a fast decision, even threatening to make peace agreements with Russia rather than Ukraine.

The situation evolved when last Thursday on February 19th, Keith Kellogg had an additional meeting with President Zelenskyy in Kyiv.

Walking out of the meeting, Zelenskyy showed an increasingly positive reaction, writing on X later that "Ukraine is ready for a strong, effective investment and security agreement with the President of the United States. We have proposed the fastest and most constructive way to achieve results. Our team is ready to work 24/7."

Yehor Cherniev, a Ukrainian lawmaker who leads Ukraine’s delegation to the NATO parliamentary assembly, said Ukraine is still open to an agreement “but the agreement must be fair and bring benefits to Ukraine — security guarantees and significant military assistance.”

Reports indicate that the US and Ukraine are working simultaneously on a new agreement with revised terms that could satisfy both sides.

This potential deal could be a game changer between Russia, China, the US, Ukraine, and the global economy.