The signing of the rare earth deal between Ukraine and the USA has been canceled.
Ukraine and the USA did not sign the agreement on rare earth metals as initially planned. The signing ceremony was canceled.
This was reported by RBK-Ukraine citing Sky News and The Guardian.
According to the publication, one of the rooms in the White House was already "fully prepared" for the signing of the agreement on rare earths. However, plans changed after a heated exchange between Ukrainian President Volodymyr Zelensky and US President Donald Trump.
At the same time, a White House representative stated that Ukraine will decide whether the meeting can be rescheduled while Zelensky remains in the USA.
How the idea emerged and what conditions were initially set by the USA
In October 2024, President Volodymyr Zelensky presented a Ukrainian victory plan, which stated that Ukraine is rich in natural resources, including critically important metals worth trillions of US dollars.
He noted that deposits of critical resources, along with Ukraine's globally important potential in energy and food production, are among Russia's key imperialistic goals in the war.
Specifically, this includes uranium, titanium, lithium, graphite, and other strategically valuable resources. The President stated that Ukraine proposes to the USA, along with certain partners, particularly the EU and other global allies, to conclude a special agreement for the joint protection of critical resources in the country, joint investment, and the utilization of the corresponding economic potential.
Moreover, as reported by the Financial Times, this clause was essentially crafted for Trump and was intended to pique his interest. And it did. The American president quickly picked up on this topic but began to promote it in a way that was most advantageous to himself.
Thus, in early February, the head of the White House announced the intention to negotiate a deal with Kyiv that would ensure US access to Ukraine's rare earth metals. Trump stated that he wanted to "reimburse" the assistance provided to Kyiv, which he claimed amounted to "500 billion dollars." He later reduced this figure to 350.
On February 11, the initial draft of the agreement was brought to Kyiv by US Treasury Secretary Scott Bessent. The requirements from the USA included 100% ownership of the investment fund and a sum of 500 billion. The head of state refused to sign such a document, stating that it did not meet Ukrainian interests.
Zelensky explained that the assistance provided to the USA amounted to neither 500 nor 350 billion dollars, but around 100 billion. Furthermore, he added that Kyiv would not recognize it as a "debt," as an agreement was made with the then-administration of President Joe Biden that it was grant aid.
This prompted criticism in Washington, after which Trump made sharp statements towards Zelensky. However, subsequently, both the Ukrainian and American sides managed to revise the document to make it acceptable for Kyiv.
"It is very important for us that the text does not mention Ukraine's debt. Neither 500 billion nor any other debts. Additionally, we managed to remove the clause about reimbursing future assistance at a rate of 2 dollars for 1," said Ukrainian Foreign Ministry spokesperson Georgiy Tikhiy.
What the agreement entails and what will happen next
As Prime Minister Denys Shmyhal explained, the document is titled "Agreement on Establishing Rules and Conditions for the Investment Fund for the Recovery of Ukraine." It is essentially a preliminary agreement that provides for legal action.
The document outlines the creation of an Investment Fund for the development and recovery of Ukraine. However, the specific operational details of this fund will be negotiated in future discussions.
The initial framework agreement stipulates that Ukraine will contribute 50% of all revenues generated from the future monetization of all natural resource assets owned by the state, as well as relevant infrastructure facilities in Ukraine.
The USA will also make corresponding contributions. This fund will invest these resources from Ukraine and the USA into the development of Ukraine, its recovery, and security. The fund will be managed by the governments of both countries. All decisions will be made only by mutual agreement of both parties. It is noted that Ukrainian subsoil and resources belong to Ukraine and will not be transferred to the USA.
According to Shmyhal, the document includes a security guarantee clause. It states that this preliminary agreement is part of the architecture of agreements already signed with the USA.
If the agreement is signed, the parties must create delegations to develop the draft of the next, more detailed agreement, which will be formalized as an international treaty. The document will require approval from the government and parliament. In this broader agreement, all specifics will be detailed, outlining how this fund will operate.
"The next steps are the signing and the creation of the appropriate delegation, which will be approved by the government. It will receive the relevant directives. Subsequently, intergovernmental work will occur to develop the project for the creation of the investment fund," Shmyhal explained.
However, the main aspect for Ukraine in cooperation with the USA remains security guarantees. As reported by the Economist citing a source in the Ukrainian government, Zelensky does not intend to sign the next agreement with the USA regarding minerals, which will follow the framework agreement, if it does not contain broader security guarantees from Washington.