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Donald Trump’s Proposal on Rare Earths Could Yield US$ 500 Billion to the US, and American Allies Advise Zelensky’s Ukraine to Reconsider It Strategically.
The relationship between the President of Ukraine, Volodymyr Zelensky, and the President of the United States, Donald Trump, is at a turning point. In Washington, allies of Ukraine believe there is a way to salvage the relationship, but it all depends on the acceptance of a deal involving rare earths — a pact that Kiev has rejected thus far.
Pressure from Washington and Donald Trump’s Resentment
According to the newspaper POLITICO, sources from the US government revealed that Trump’s harsh criticisms of Zelensky’s Ukraine, which surprised Europeans and pleased Russia, do not represent a rapprochement with Moscow. Instead, they reflect Trump’s resentment toward Ukraine’s refusal to accept the deal proposed by the US regarding that country’s rare earths.
The pact would open vast deposits of rare earth minerals in Ukraine to American investment. “They had to learn the hard way that publicly criticizing Trump will only backfire spectacularly“, said a Republican close to the administration.
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He added that, while there is an anti-Ukraine faction within the party, most still support Kiev. “Attacking Trump only adds fuel to the fire against you,” he concluded.
Shock in Ukraine and Lack of Security Guarantees
In Kiev, Trump’s aggressive tactics have caused outrage. This is despite Ukraine initially proposing a rare earths deal. However, the version presented by Trump raised discomfort on the Ukrainian side, which pointed to the absence of adequate security guarantees.
Keith Kellogg, Trump’s envoy for peace negotiations in Ukraine, visited Kiev and met with Zelensky. Although a spokesman for Kellogg did not confirm whether they discussed reviving the deal, Zelensky’s public statement after the meeting suggested an opening:
“Ukraine is ready for a strong and effective investment and security deal with the President of the United States. We proposed the quickest and most constructive way to achieve results. Our team is ready to work 24 hours a day, 7 days a week.”
Despite the conciliatory tone, Zelensky avoided directly mentioning rare earths.
Billion-Dollar Deal and Controversial Proposals
According to American officials, Ukraine must act quickly to finalize the rare earths deal. The pact would give US companies 50% ownership of Ukrainian mineral deposits, with a potential value of hundreds of billions of dollars.
Trump demanded US$ 500 billion in minerals as a condition for maintaining Washington’s assistance. The previous week, his team presented a deal that Kiev rejected in its current form.
While some Republicans view the proposal as a strategic opportunity, critics — including European officials — label it as a form of blackmail. To them, the deal imposes severe conditions on an ally in a delicate situation.
Ukrainian Demands for Security
Yehor Cherniev, a Ukrainian legislator from Zelenskyy’s People’s Party and head of Ukraine’s delegation to the NATO parliamentary assembly, reiterated that Kiev remains open to negotiation.
However, he emphasized that the deal must be fair and bring concrete benefits to Ukraine, including security guarantees and significant military assistance.
“We have been a loyal friend and ally of the US for many years. The attitude toward us as a colony or as an enemy to whom reparations are imposed is offensive and incomprehensible to us,” Cherniev stated.
NATO allies and Ukrainian officials argue that security guarantees do not represent charity but are essential protection for the Western alliance. They are viewed as a barrier to prevent future Russian attacks, ensuring stability in the region.
Security of Ukraine
Alina Polyakova, head of the Center for European Policy Analysis, stressed that security is crucial to enable foreign investment.
“They need a safe place to do business for this deal to happen. Companies will not invest and set up very costly mining and exploration operations if they think they could be hit by Russian missiles,” Polyakova said.
Despite the obstacles, there is recognition from Ukrainians that the rare earths deal could be the only way to secure continued US support, especially under transactional leadership like Trump’s.
Republicans supportive of aid to Ukraine see the plan as a way to attract the MAGA movement by investing in Ukrainian security, ensuring economic benefits for the US. However, European critics view the proposal as an attempt by Trump to obtain compensations for the billions of dollars already sent in aid.
These critics argue that Trump did not impose such strict demands on Russia as on Ukraine, which has caused dissatisfaction among officials in Kiev and Europe.
Zelensky’s Last Card
Zelensky stated he rejected Trump’s initial proposal because it “is not ready to protect our interests.” However, for National Security Advisor Mike Waltz, a co-investment deal would be “the best security guarantee they could expect, much more than another pallet of ammunition.”
Waltz also criticized the Ukrainian president’s stance in publicly rejecting the deal. “They need to tone it down and sign the deal,” he stated.
Meanwhile, Ukraine faces a strategic dilemma: accept the harsh conditions of the deal to maintain vital US support or insist on security guarantees that, so far, Washington seems reluctant to grant.
With information from Politico.
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