Ukraine will not agree to any deal over its minerals with the U.S. if it endangers Kyiv’s aspirations to join the European Union, President Volodymyr Zelensky has said.
Newsweek has contacted the White House via email for comment.
Why It Matters
Zelensky would only agree to a minerals deal that could give his country security guarantees against Russian aggression, but these have not been forthcoming and an agreement that could compromise EU membership adds a further snag.
What To Know
The Ukrainian president told a press briefing on Friday that Kyiv had received a draft agreement on its valuable resources from the U.S.
But a Ukrainian media outlet said the deal may go against the economic sovereignty required for Kyiv’s EU accession.
The previous day, the Financial Times reported that the latest version of the agreement proposed by the U.S. would see Washington control Ukraine’s natural resources through a joint investment fund.
This would apply to all mineral resources, including oil and gas, and major energy assets which Ukrainian officials fear would undermine their nation’s sovereignty.
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Trump has floated exploiting Ukrainian rare earths as redress for U.S. military aid for Kyiv and an agreement was reportedly due to be signed on February 28, but put on ice after a spat between him and Zelensky.
Zelensky said on March 25 the U.S. had proposed a minerals deal without giving a timeline, a day after Trump said a deal would be signed “soon.”
The initial version of the agreement would establish a fund to which Ukraine would contribute 50 percent of proceeds from the extraction of state-owned resources, including oil, gas, and logistics infrastructure.
The version Kyiv approved earlier does not include security guarantees, but says that the fund would be reinvested for the benefit of Ukraine.
The FT reported Thursday that the U.S. proposal would mean Washington would have control over Ukraine’s natural resources through a joint investment fund.
The Trump administration reintroduced a clause on Ukrainian subsoil resources that obliges Kyiv to repay the full amount of U.S. aid provided since the beginning of the war, which the Kiel Institute said would amount to around $123 billion.
But the Ukrainian online newspaper Yevropeiska Pravda said this may contradict EU accession due to restrictions that affect Ukraine’s economic sovereignty.
What People Are Saying
Ukrainian president Volodymyr Zelensky: “Nothing that could threaten Ukraine’s accession to the EU can be accepted.”
Ukraine’s First Vice Prime Minister and Economy Minister Yulia Svyrydenko said:
“The working version we received essentially reflects the position and approaches of the legal experts from the U.S. side. We are formulating our position.”
What Happens Next
Sticking points remain regarding a deal over Ukraine’s mineral resources which would have to ratified by the country’s parliament.
Zelensky has said Kyiv will not recognize the U.S. military aid given so far as a debt within the framework of the mineral resources agreement. However, it would be prepared to reimburse the United States for future assistance.
