On the 19th, a day after the high-level talks between the United States and Russia, U.S. President Donald Trump criticized Ukrainian President Volodymyr Zelensky as a "dictator who has not held elections" and a "comedian who persuaded the United States to spend $350 billion (approximately 504.38 trillion won) on a war that needed not to begin." About a week earlier, on the 13th, U.S. Secretary of the Treasury Scott Bechant met with Zelensky in Kyiv. During that meeting, Secretary Bechant presented a draft mineral agreement demanding half of Ukraine's rare earth equity in exchange for the U.S. military's presence after a ceasefire with Russia. However, Zelensky did not immediately sign the draft mineral agreement, stating that it needed review. Analysts suggest that Trump's attack on Zelensky may be linked to the minerals buried in Ukraine. Moreover, it is reported that a considerable amount of the minerals buried in Ukraine is located in Russian-occupied territories, leading to speculation that the U.S. has sought rights to them from Russia.
The Wall Street Journal (WSJ) reported on the 20th, citing information obtained by Western governments, that "one U.S. government-related think tank sent a memo to the Russian government ahead of high-level talks between the U.S. and Russia (on the 18th)," adding that "the memo proposed granting rights to the mineral deposits in Ukraine occupied by Russia to American corporations."
Since the outbreak of the war between Ukraine and Russia in February 2022, Trump has been demanding rights to develop minerals buried in Ukraine in exchange for various forms of aid, including weapons, provided by the U.S. to Ukraine. On the 3rd, Trump stated at the White House, "The U.S. has supported Ukraine with close to $300 billion. I want something in return for that," adding, "There are very valuable rare earth elements in Ukraine. We're looking at a transaction guaranteeing support for Ukraine and receiving rare earth elements from Ukraine." In an interview with Fox News on the 10th, Trump also stated, "I said I want rare earth elements worth $500 billion (approximately 726 trillion won) from Ukraine, and they essentially agreed," emphasizing that "Ukraine has very valuable resources like rare earths, oil, and gas. We want to safely protect the money we spent, which was in the hundreds of billions."
According to the U.S. government, 22 of the 34 minerals deemed important by the European Union (EU) are buried in Ukraine. These include industrial and construction materials, ferroalloys, precious and nonferrous metals, and some rare earth elements. Ukraine is also reported to have significant coal reserves. The issue is that most of Ukraine's mineral resources are located in Russian-occupied territories. According to a mineral map published by the Ukrainian Geological Survey, the region with the highest concentration of rare earth elements buried in Ukraine is along the eastern front of Ukraine. Zelensky has previously stated to Reuters, "Russia occupies about half of Ukraine's rare earth deposits." This indicates that the U.S. may be seeking mineral rights from Russia.
◇ U.S. "exchange for support" vs. Ukraine "must ensure future security" regarding mineral mining rights
Initially proposing the mineral resource agreement to the U.S. was Zelensky. It was a strategy coinciding with Trump's election, which focused on interests and transactions. On the 8th, Zelensky stated on X (formerly Twitter), "Ukraine boasts the largest strategic resource deposits in Europe," arguing that "protecting Ukraine means protecting these resources." Additionally, Zelensky emphasized in an interview with Reuters on the 7th, "We have mineral resources. Even if we are strategic partners, we will not give these resources to anyone. Invest in us; let's develop together and make money."
The problem is that there is a difference in the levels desired by both sides. Trump has maintained the position that in exchange for U.S. support to Ukraine, he will mine Ukrainian minerals, while Zelensky insists that mining of Ukraine's minerals should be in exchange for future security guarantees. On the 17th, the British daily Telegraph reported that it obtained a draft memorandum of the "Reconstruction Investment Fund" agreement proposed by the Trump administration to the Ukrainian government, indicating that the U.S. wants 50% of the revenue Ukraine generates from resource extraction and 50% of the economic value of "all new permits granted to third parties" to monetize those resources. Furthermore, the U.S. wants a right of first refusal (RoFR) on minerals that Ukraine could export, while the Ukrainian government must waive the "sovereign immunity" privilege regarding debts or liens under the agreement.
Presumably for this reason, Zelensky refused to sign the draft mineral agreement presented by Secretary Bechant on the 12th. The WSJ quoted Republican lawmakers who met Zelensky at the Munich Security Conference held from the 14th to the 16th, stating, "Secretary Bechant pushed the paper (draft mineral agreement) across the table and demanded Zelensky sign it," adding that "when Zelensky said he would discuss it with his team, Secretary Bechant pushed the paper closer to Zelensky, saying 'You need to sign this. If you don't, people in Washington will be very angry.'"
◇ White House national security advisor pressures Ukraine to sign mineral agreement
The standoff between the U.S. and Ukraine over the minerals in Ukraine continues. Zelensky commented to reporters on the 19th that the draft mineral agreement shown by Secretary Bechant is "unclear" aside from demanding 50% of Ukraine's mineral resources. However, he stated that while he refused to sign the draft mineral agreement, he is open to entering into a security and economic agreement that includes U.S. security guarantees for Ukraine. Furthermore, in a statement following a meeting with Keith Kellogg, Trump's special envoy to Ukraine, on the 20th, Zelensky emphasized, "Ukraine is ready to establish a strong and effective investment and security agreement with Trump, and we proposed the fastest and most constructive way to achieve results."
The White House has taken to publicly pressuring Ukraine. On the 20th, Mike Waltz, the White House national security advisor, appeared on Fox News, demanding that Zelensky stop criticizing Trump and sign an agreement to hand over half of Ukraine's minerals to the U.S. Waltz stated, "They (Ukraine) need to reduce accusations against (the U.S.) and closely examine the (mineral) agreement to sign it," adding that the mineral agreement proposed by the U.S. is "the best security guarantee they desire, as it would allow the U.S. to jointly invest in growing Ukraine's economy over time."
On this day, Waltz told White House press reporters, "The insults directed at Trump from Ukraine are unacceptable," stating, "Trump is very frustrated with Zelensky right now. The fact that he has not come to the negotiation table and hasn't wanted to seize the opportunity we provided is the issue."