The US pressured Ukraine to sign a deal on rare earth mineral development before the Munich Security Conference, warning that failure to do so could result in the cancellation of a meeting with Vice President J.D. Vance, Ukrainian diplomatic sources said.
Ukraine did not comply. The meeting between the Ukrainian president and Vance took place on 15 February in the afternoon instead of the morning.
The postponement was due to schedule coordination and the US reviewing the draft proposal submitted by Ukraine.
“They initially linked the signing of the agreement to the meeting with Vance - no signature, no meeting,” a source said.
Sources confirmed that the US demanded 50% of Ukraine’s rare earth minerals, as previously reported by NBC.
The US Treasury Secretary presented the minerals agreement to Ukraine last week. At the Munich conference, Volodymyr Zelenskyy stated that Ukraine would not sign the document in its current form, as it did not align with the country’s interests.
Agreement with the US on rare earth elements
- US Treasury Secretary Scott Bessent brought proposals to Kyiv for US access to Ukraine’s rare earth materials. Ukraine did not sign the document but took it for review, later submitting a revised draft to the US.
- Donald Trump expressed interest in signing a rare earth elements agreement with Ukraine as compensation for US assistance.
- German Chancellor Olaf Scholz criticised Trump’s approach, stating that Ukraine’s resources should be used for post-war recovery.
- According to Horizon Capital, a Ukrainian private equity firm, Ukraine has deposits of 20 major minerals, including cobalt and graphite, with reserves valued at $11.5 trillion. Ukraine also holds about a third of Europe’s proven lithium reserves, a key material for batteries, which could attract interest from Elon Musk’s electric vehicle business.
- On 4 February, Zelenskyy said Ukraine was open to foreign investment in its mineral sector and had discussed the matter with Trump in September 2024. He also stated that Ukraine aimed to supply rare earth metals and other minerals to the US in exchange for financial support in the war.