U.S. President Donald Trump has reportedly conditioned continued American security and economic aid to Ukraine on securing access to the country’s vast, largely untapped rare mineral resources.
U.S. extortion?
According to reports on Sunday, Washington and Kyiv were close to signing an agreement that would grant the U.S. exclusive rights to profits from rare mineral extraction in Ukraine—a condition Trump set as a prerequisite for continued support.
The Trump administration has also demanded that future revenues from Ukraine’s mineral resources, ports and other infrastructure be transferred to a U.S.-controlled fund until it accumulates $500 billion.
"At our current rate of profitability from these minerals, it would take us 250 years to repay $500 billion," Ukrainian President Volodymyr Zelensky said. "That means ten generations of Ukrainians would be burdened with this debt. It’s an impossible sum, and I cannot sign such an agreement."
Ukraine’s annual revenue from mineral resources stands at $1.1 billion—four times lower than the total U.S. investment in Ukraine to date.
However, Zelensky and his European Union counterparts face limited options. With few assets to leverage in negotiations, U.S. support and military presence remain the primary deterrents preventing a full-scale Russian invasion of Europe. Despite Ukraine’s repeated requests, Washington has refused to offer security guarantees beyond financial aid for post-war reconstruction. A significant portion of that funding is expected to come from territories currently occupied by Russia, particularly the resource-rich Donbas region.
Tensions between Trump and Zelensky
The dispute comes at the end of a week of escalating back-and-forth between Trump and Zelensky. "He’s an unelected dictator," Trump said of the Ukrainian president. Zelensky fired back, saying Trump was "trapped in a web of disinformation," after the president claimed that Zelensky was responsible for starting the war.
On Monday, the U.S. made an unprecedented move by voting against a Ukrainian-sponsored resolution at the United Nations, which called for Ukraine’s sovereignty to be respected on the third anniversary of Russia’s invasion.
Despite criticism, sources within the Trump administration claim the proposed agreement is in Ukraine’s best interest. "There is no greater guarantee than the Trump administration’s promise of future economic cooperation," a senior U.S. official told CBS. "Ukraine has vast, untapped mineral deposits that international investors have avoided due to bureaucratic and legal hurdles. These resources account for only 2.5% of Ukraine’s budget revenues—a number that should be much higher. If properly developed, they could secure Ukraine’s long-term economic independence."
The official added that establishing American economic interests in Ukraine would be a stronger deterrent to Russia than any amount of military aid.
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Ukraine possesses immense deposits of rare minerals, including titanium, lithium and rare earth elements critical for batteries, electronics and clean energy. The country holds an estimated 500,000 tons of lithium, making it Europe’s largest lithium reserve—yet none of it has been mined.
According to Reuters, Ukraine has reserves of 22 out of 34 minerals classified by the European Union as rare, including lanthanum, cerium, neodymium, erbium and yttrium. Experts value these resources at $12 trillion, but more than 50% are currently under Russian control.
In 2021, Zelensky introduced incentives—including government subsidies and tax breaks—to attract international mining companies. However, before the plan could take effect, Russia invaded Ukraine. Trump’s proposal would see these resources seized for U.S. economic interests, primarily as part of his trade war strategy against China.
Shifting negotiations
Following the tensions between Trump and Zelensky, the former U.S. president initiated direct negotiations with Russian President Vladimir Putin—excluding both Ukraine and its European allies.
After Ukraine rejected an initial American proposal granting the U.S. control over 50% of mineral revenue, Zelensky embarked on a diplomatic tour of Arab states to seek alternative investment sources. Meanwhile, Keith Kellogg, Trump’s special envoy for Ukraine, visited Kyiv for a three-day trip.
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Russian President Vladimir Putin
(Photo: Sputnik/Vyacheslav Prokofyev/Pool via REUTERS)
Shortly afterward, Zelensky adopted a noticeably softer tone in public statements, hinting at progress in negotiations and the possibility of reaching an agreement. Analysts believe Ukraine has reluctantly accepted Trump’s terms in exchange for American security guarantees.
The Daily Telegraph compared the U.S. demands to the punitive reparations imposed on Germany under the Versailles Treaty after World War I.
"The initial U.S. proposal was entirely one-sided in favor of Washington. It effectively dictated that Ukrainians would have to pay the Americans first—before they could even feed themselves," the paper wrote.
However, some analysts suggest Trump’s extreme opening bid is a calculated negotiation tactic, designed to push Ukraine toward a compromise more favorable to the U.S.
Trump appears to be leveraging Europe’s unwillingness to send troops to Ukraine, as well as the impossibility of Kyiv standing against Russia without American backing.
"If Trump pulls out, Ukraine will be handed to Russia on a silver platter," an EU diplomat warned.
For now, Ukraine’s negotiating position remains weak.
"He’s entering negotiations with no cards to play," Trump said of Zelensky last week.