Brussels is teasing an agreement while Washington is finalizing its own bid for Kiev’s resources
The European Union has suggested a potential agreement to Ukraine on the use of the country’s mineral resources, EU Commissioner for Industrial Strategy Stephane Sejourne said on Monday, as quoted by Agence France-Presse.
It rivals an earlier deal pursued by US President Donald Trump, who demanded the “equivalent of $500 billion” worth of natural resources, as compensation for aid provided to Kiev throughout its conflict with Russia.
Sejourne told the agency that the deal on “critical materials” was proposed during the visit of the bloc’s delegation to Kiev on Monday.
“Twenty-one of the thirty critical materials that Europe needs can be supplied by Ukraine as part of a win-win partnership,” the commissioner said, claiming that the EU would “never ask for an agreement that is not mutually beneficial.”
Last year, Zelensky proposed granting the US privileged access to Ukrainian natural resources as part of his ‘victory plan’. However, he has refused to agree to two Trump administration proposals that would have granted the US 50% ownership of the rare-earth minerals. The American president has denounced it as a breach of trust.
Zelensky has stated that Kiev was seeking a mutually beneficial “partnership” and would not simply hand over the nation’s natural resources, and asked for the inclusion of security guarantees.
The revised proposal presented last Friday outlines that the US would hold 100% ownership of the proposed fund, receiving the entirety of the financial interest from it, the New York Times reported. Under this arrangement, Ukraine would contribute half of the future revenues from its mineral extraction to the fund, as well as earnings from ports and other infrastructure.
Ukraine has reportedly proposed a revision to the size of the fund, arguing that the $500 billion figure is too high. The new draft still does not provide any specific security guarantees for Kiev.
Last Saturday, Trump claimed the deal was “pretty close” and “we’d better be close to a deal.”
Prior to the escalation of the Ukraine conflict in 2022, the nation held Europe’s largest titanium and lithium reserves. While not classified as rare-earth elements, these metals are vital for the defense sector, as well as for the production of batteries and capacitors. Ukraine’s deposits of rare-earth metals also include beryllium, manganese, gallium, uranium, zirconium, graphite, apatite, fluorite, and nickel.
In 2023, Forbes Ukraine estimated that the nation’s mineral resources were worth some $14.8 trillion, amounted to 111 billion metric tons, and mostly consisted of coal and iron ore. The publication highlighted, however, that over 70% of these resources are located in Donetsk and Lugansk regions that declared independence from Ukraine in 2014 following the Western-backed Maidan coup in Kiev. The territories came under Russian control after the regions voted to join Russia in 2022.
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