A $500 billion deal: Why does Trump want Ukraine's resources, and what can Zelensky offer him?
On February 23, during a press conference, President Vladimir Zelensky commented on the agreements regarding natural resources proposed by the United States and explained why Ukraine declined to sign them.
What concerns the Ukrainian side and the current status of the negotiations is covered in this article by RBC Ukraine.
Contents:
What conditions did the US propose
During the press conference on February 23, as part of the "Ukraine. Year 2025" forum, Vladimir Zelensky described both draft agreements proposed by the American side. In the first draft, American partners wanted to split existing revenues from the extraction of Ukrainian minerals 50-50. The Ukrainian side rejected such terms. According to Zelensky, if the Americans had proposed to share half of the revenues from mineral extraction in lands that would be liberated in the future, including with the help of American weapons, then Kiev would have been willing to consider that option.
In the second draft agreement, Ukraine was asked to acknowledge a debt of $500 billion and establish a fund completely controlled by Washington, which would be filled with revenues from mineral extraction. Ukraine receives $2 billion annually from the use of its natural resources, and these funds would need to go into this fund. Such conditions, Zelensky stated, do not represent a joint investment since Ukraine would be funding this fund while the US would only benefit from these resources.
"If this money goes into the fund (from Ukraine - ed.) and nothing comes from abroad into this fund, but everything is domestic, we are paying off a debt," - commented Zelensky.
He further added that in the second draft agreement, the US proposed that for every dollar invested by them, Ukraine would return two dollars, meaning a 100% return on American investment. Zelensky questioned whether such a return could be achieved in the global arms market, where the US is an active seller.
The president emphasized that both draft agreements lacked any security guarantees for Ukraine. "The agreement needs to include what is currently missing - security guarantees that we must receive from the US," - he stated.
Kiev's response
Zelensky declared that Ukraine does not recognize the $500 billion debt to the US, as the total aid received from the United States amounted to only $100 billion. He added that the total cost of conducting the war since February 24, 2022, has reached $320 billion, of which $120 billion is Ukraine's share, $100 billion was provided by Europe and partners (e.g., Japan), and another $100 billion is from the US.
"I know we had 100 (billion dollars) and that is a fact. I am not going to acknowledge 500... Even 100 billion I am not ready to confirm, because we should not recognize grants as debts," - Zelensky explained, noting that the funding from the US, approved during Joe Biden's administration, was largely grant-based, meaning it did not need to be repaid. Moreover, this assistance was supported by both parties in Congress. Even if this fact is displeasing to the current administration, Zelensky added, these were agreements that must be adhered to.
As a result, Zelensky refused to sign both draft agreements and stated: "I do not sign agreements that will be paid for by 10 generations of Ukrainians." He added that, first and foremost, Ukraine needs to reassess its financial commitments and, secondly, clearly define security guarantees that must include additional air defense systems, missiles, other support for the Ukrainian army, as well as boots on the ground - foreign troops in Ukrainian territory. Zelensky emphasized that merely having American businesses present in Ukraine does not constitute security guarantees and will not deter Russia from renewed aggression.
"If you believe that an economic agreement is part of security guarantees, then why can't there be your boots on the ground where your business interests are present? Seems logical to me. I made such a pass towards the US. We have yet to receive a response," - said Zelensky.
The current state of negotiations
According to Zelensky, during the negotiations on February 23, the Americans no longer mentioned the $500 billion debt.
"Both the ministers and representatives of our companies, as well as my chief of staff (Andrey Yermak - ed.), are currently in contact with Woltz (Mike Woltz - US National Security Advisor - ed.) and his team. They are discussing the deal. The $500 billion is no longer mentioned. It seems to me that there are no percentages either. You see, we are moving forward," - Zelensky commented.
He stated that Ukraine is willing to discuss a new military or financial assistance agreement with the US on purely commercial terms, with interest payments, but without revising the agreements reached with the Biden administration.
What Ukraine can realistically offer
In a comment to RBC Ukraine, former head of the "United Mining and Chemical Company," which is involved in titanium raw material extraction, Yegor Perelygin stated that currently Ukraine can offer 5-6 viable projects for the extraction of critical mineral resources, particularly titanium ore.
"We are a country that has a fairly strong position in the extraction and processing of titanium-containing minerals and concentrates. We have a sufficient resource base and reserves to propose projects related to titanium," - he stated, adding that Ukraine still possesses a skilled workforce and has processed titanium ore at facilities such as the "Zaporizhzhia Titanium and Magnesium Plant."
According to the expert, the active interest of the US in critical raw materials is linked to China's significant success in this sector, as the Middle Kingdom extracts over 60% of all rare earth elements globally and processes 87% of the corresponding raw materials. The US significantly lags behind China in this regard and is dependent on them for many positions, such as graphite imports.
"We can offer our resource base; we have several interesting deposits and substantial graphite reserves in the country," - said Yegor Perelygin, adding that projects for the extraction of manganese, lithium, and uranium could also be proposed. However, to enhance the attractiveness of these projects, several issues need to be resolved, as already mentioned in RBC Ukraine's publication.
He noted that Ukraine could also consider options for privatizing state companies operating in the field of subsoil use. "There is always the possibility of privatization. This is a fully functional mechanism; I see no problems in applying it. The legal framework for this exists," - he added.
During the press conference, Zelensky stated that he had instructed the State Service of Geology and Natural Resources to conduct an audit of all issued special permits (licenses) for subsoil use. This review is necessary to update geological information that was collected during the Soviet era. Such an audit will also help clarify who has rights to develop the subsoil and what can genuinely be put on the negotiation table with the Americans.
An important aspect is the presence of a private owner for a particular special permit, which prevents it from being transferred or even offered to another party. Commenting on this aspect of the raw material deal, Zelensky stated that during the audit, he would check the legality of obtaining licenses for subsoil development. Furthermore, he announced that the state would nationalize those special permits that were obtained illegally.
"There will be appropriate decisions - something is legally owned, something is illegally owned... Where everything is fair and business is involved, we will protect them. Where there are dormant licenses (those that were acquired but have not been developed for a long time - ed.) and someone has robbed something, we will return that," - said the president.
Summing up all the conflicting information surrounding the agreement with the US, Zelensky stated that the Ukrainian side advocates for an equitable agreement. "We want the agreement to be without scandal and, on the contrary, a win-win for our peoples... This is the kind of agreement that needs to be signed," - he stated.
As reported, on February 10, 2025, President Donald Trump stated that Ukraine "essentially agreed" to provide the US access to natural resources worth $500 billion. On February 11, he mentioned