US-Ukraine mineral deal talks turn antagonistic over Trump’s "maximalist" proposal

U.S. and Ukrainian officials held tense discussions on April 11 regarding a U.S. proposal to gain access to Ukraine’s mineral wealth.

The talks, which were marked by an "antagonistic" atmosphere, offered little hope for a breakthrough, the source familiar with the matter told Reuters.

The tension stemmed from the Trump administration’s latest draft proposal, which was seen as more expansive than the original version, raising the stakes for both parties. According to the source, the “maximalist” draft submitted by the Trump administration last month significantly altered the terms of the agreement, making the negotiations more strained.

A Treasury Department spokesperson confirmed the discussions, labeling them as "technical in nature." However, the details of the new proposal revealed much more than a simple technicality. The draft would grant the U.S. privileged access to Ukraine’s mineral deposits, with a requirement that all income from the exploitation of natural resources by both state and private Ukrainian firms be placed into a joint investment fund.

Despite the significant economic opportunities presented, the proposed deal did not include U.S. security guarantees for Ukraine, which remains a priority for Ukrainian President Volodymyr Zelenskyy. This omission has added further complexity to the talks, as Ukraine continues to seek stronger security assurances amid ongoing conflict with Russia, which controls roughly 20% of Ukraine's territory.

The U.S. proposal also includes a surprising demand — the control of a natural gas pipeline running from Russian energy giant Gazprom across Ukraine to Europe, which the U.S. government’s International Development Finance Corporation would take charge of. This “Easter egg” demand raised concerns and added to the already fraught negotiations.

To navigate the complexities of the deal, the Ukrainian government has enlisted the law firm Hogan Lovells as an external adviser, the source noted.

President Zelenskyy, speaking on April 9, emphasized that any minerals deal should be mutually beneficial, with the potential to help modernize Ukraine. He stated that such a deal could help revitalize Ukraine's economy, but it needed to offer benefits to both nations.

Top Ukrainian officials, including Prime Minister Denys Shmyhal and Finance Minister Serhiy Marchenko, are set to visit Washington in two weeks for the International Monetary Fund (IMF) and World Bank meetings. On April 25, a Ukraine-focused ministers' meeting will take place, where these discussions are expected to continue, according to multiple sources familiar with the plans.

The push for a minerals deal is part of U.S. President Donald Trump’s broader strategy to secure access to Ukraine’s rare earth mineral resources, which are considered crucial for various high-tech industries. This initiative is also seen as a way to recover the billions of dollars in U.S. military assistance provided to Kyiv in its fight against Russian aggression. However, the lack of security guarantees for Ukraine in the current proposal has led to significant skepticism about its chances of success.

By Tamilla Hasanova