Ukraine Officials Stall Trump's 'Colonial' Rare Earths Bid, Prefer Mutually Beneficial Deal

Ukraine rejected President Donald Trump‘s recent offer to take 50% ownership of its rare earth minerals in exchange for continued financial and military support.

According to Euro News, Ukrainian officials called the bid exploitative and rushed. One former senior official labeled it a "colonial agreement" that Kyiv could not accept in its current form.

President Volodymyr Zelenskiy opted to explore the options more thoroughly.

During a recent meeting, U.S. Treasury Secretary Scott Bessent presented the offer in Kyiv as American officials pushed for greater access to Ukraine's mineral wealth

Yet, Zelenskiy seeks a stronger commitment from the U.S. and European allies through security guarantees to deter future Russian aggression.

"For me, it is very important to connect security guarantees with investment," Zelenskiy said for AP, clarifying that mineral concessions would not come without strategic benefits for Ukraine.

Since the Russian invasion in 2022, the U.S. has provided Ukraine with approximately $66 billion in military aid, per the official State Department's estimates.

White House National Security Council spokesman Brian Hughes defended the proposal, arguing that "binding economic ties with the United States will be the best guarantee against future aggression and an integral part of lasting peace." However, critics, including MIT economist Simon Johnson, warned that the terms of the deal appeared unreasonable. "Investment in Ukraine's critical minerals sector could make sense, but this initial offer seems exploitative and unlikely to help end the war," Johnson stated for The Washington Post.

Rare earth minerals are vital to modern technology and are used in everything from electric vehicles to defense systems. The public often mistakes these elements, like neodymium (crucial for magnet production), for critical minerals like titanium, lithium, or graphite, which are also found in significant quantities in Ukraine. China dominates the global rare earths market, producing most of the world's supply and refining capacity. With only one operational rare earth mine, the US has sought alternative sources to reduce dependence on foreign supply chains.

Despite a stall, negotiations between Kyiv and Washington are expected to continue. Ukrainian Deputy Prime Minister Olha Stefanishyna acknowledged that the two sides remain in talks, suggesting that a revised agreement is in the works.

"We have not rejected the agreement; it is still under discussion. We expect that it will be signed," she stated per RBC-Ukraine.

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