US minerals deal proposal sparks tensions with Ukraine over security issues and EU plans

A new U.S. proposal regarding a minerals deal with Ukraine has raised significant concerns among Ukrainian officials, signaling potential friction between the two countries.

The proposal, which dramatically alters the terms of a previous framework discussed by Kyiv and Washington, has left Ukrainian leaders dissatisfied, particularly due to its lack of security guarantees and the introduction of controversial new elements, Caliber.Az reports, citing US media.

Ukrainian President Volodymyr Zelenskyy revealed on March 28 that his office had only received the latest proposal from Washington that same day. The new document came after an earlier version had been delivered to Deputy Prime Minister Yulia Svyrydenko by U.S. Treasury Secretary Scott Bessent.

According to Zelenskyy, Svyrydenko described the proposal as "entirely different" from the previous framework and noted that it included provisions "not previously discussed" and "elements that had already been rejected by both sides."

Zelenskyy emphasized that he would only consider the version of the deal that had been officially submitted to Ukraine and stressed the importance of a thorough review of the new format before moving forward. "We must study that format first, and then we can talk," he stated, underscoring the need for legal scrutiny to ensure compliance with Ukrainian law and the constitution. He added that no agreement would be made if it interferes with Ukraine’s EU accession plans.

To recall, the United States proposed a deal to gain access to Ukraine's critical minerals and energy resources. This proposal aims to recoup U.S. military aid provided to Ukraine since Russia's invasion in 2022 and deepen American investments in Ukraine's economy. The initial draft of the deal, presented in February 2025, suggested that the U.S. would receive 50% of the revenues from Ukraine's mineral and natural resources, including rare earth minerals, uranium, lithium, oil, gas, and port revenues. U.S. companies would also hold 50% ownership of Ukraine's rare earth deposits.

Ukrainian President Volodymyr Zelenskyy rejected the proposal, citing the lack of security guarantees and concerns over the terms, emphasizing the need to protect Ukraine's sovereignty and maintain its path toward EU integration. In response, Ukrainian officials are preparing counter-proposals that include explicit security guarantees and more favorable economic terms.

Experts have raised questions about the commercial viability of Ukraine's rare earth deposits, citing outdated geological surveys and the challenges posed by ongoing conflict. Mining these resources requires substantial capital and long-term investments, and the current security situation raises concerns about investor confidence.

Negotiations are ongoing as both sides aim to reach an agreement that balances Ukraine's sovereignty and economic interests with the U.S.'s goals of securing repayment for military aid and gaining access to critical resources.

By Khagan Isayev