US presented Ukraine with document to access its minerals but offered little in return | AP Explains

(16 Feb 2025)
RESTRICTION SUMMARY:

US NETWORK POOL
Munich, Germany – 14 February 2025
++QUALITY AS INCOMING++
1. Wide of U.S. and Ukrainian delegations seated at table; including Vance and Zelenskyy

ASSOCIATED PRESS
Munich, Germany – 16 February 2025
1. SOUNDBITE (English) Emma Burrows, the Associated Press:
++STARTS ON SHOT 1 AND PART COVERED BY SHOT 3++
"Ukraine’s president Volodymyr Zelenskyy told the Associated Press he directed his ministers not to sign a proposed agreement to give the United States access to Ukraine’s rare earth minerals, because the document was too focused on American interests. The proposal was a key part of Zelenskyy’s talks with U.S. Vice President JD Vance on the sidelines of the Munich Security Conference here in Germany, but didn’t offer the Ukrainians any specific security guarantees in return, a current and former senior Ukrainian official said. Ukraine’s got vast reserves of critical minerals which are used in defense and nuclear industries. The Trump administration wants to access them to reduce dependence on China, but Ukraine wants concrete security guarantees in return which will deter future Russian aggression. The proposal from Trump’s team viewed the minerals as compensation for support already given to Ukraine and as payment for future aid, the current and former Ukrainian officials said. The White House said a minerals deal would allow American taxpayers to recoup money sent to Kyiv while growing Ukraine’s economy. It said the offer was an excellent opportunity and that President Zelenskyy is being short-sighted by not signing it."

ASSOCIATED PRESS
Kirovohrad region, Ukraine – 12 February 2025
3. Various of mining in the Kirovohrad region
STORYLINE:
Ukrainian President Volodymyr Zelenskyy said he directed his ministers not to sign off on a proposed agreement to give the United States access to Ukraine’s rare earth minerals because the document was too focused on U.S. interests.

The proposal, which was a key part of Zelenskyy’s talks with U.S. Vice President JD Vance on the sidelines of the Munich Security Conference on Friday, did not offer any specific security guarantees in return, according to one current and one former senior Ukrainian official familiar with the talks.

Zelenskyy’s decision not to sign a deal, at least for now, was described as “short-sighted” by a senior White House official.

Zelenskyy told The Associated Press on Saturday in Munich that the agreement didn’t offer the security guarantees required.

The proposal focused on how the U.S. could use Kyiv’s rare earth minerals “as compensation” for support already given to Ukraine by the Biden administration and as payment for future aid, current and former senior Ukrainian officials said, speaking anonymously so they could speak freely.

Ukraine has vast reserves of critical minerals that are used in the aerospace, defense and nuclear industries.

The Trump administration has indicated it is interested in accessing them to reduce dependence on China but Zelenskyy said any exploitation would need to be tied to security guarantees for Ukraine that would deter future Russian aggression.

Zelenskyy did not go into details about why he instructed his officials not to sign the document, which was given to Ukrainian officials on Wednesday by U.S. Treasury Secretary Scott Bassent on a visit to Kyiv.

The U.S. proposal apparently did not take into account how the deposits would be secured in the event of continuing Russian aggression.

AP video by Daniel Niemann

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