Donald Trump appears to have won his trade standoff with Volodymyr Zelensky, as the Ukrainian president is set to give in and sign a deal giving the U.S. access to deposits of critical minerals.
The deal was seen as crucial for satisfying Washington’s demands for a peace settlement between Ukraine and Russia to end their three-year long war.
Zelensky said on Friday that officials from his country and the U.S. were working on concluding an economic deal to ensure that the accord worked and was fair to Kyiv.
‘We’re signing an agreement, hopefully in the next fairly short period of time,’ Trump told reporters in the Oval Office when asked about a deal for Ukraine’s minerals.
The Wall Street Journal later cited several people familiar with the matter that the deal is close and will be signed within hours.
It comes following word that Zelensky angered Trump so much during negotiations that Trump threatened to completely pull US funding from Ukraine, Axios reported.
On Wednesday Zelensky rejected the demand for a share of its rare earth minerals—critical for cellphone production and a host of clean technologies.
That triggered a brutal war of words between the two leaders but an improved offer has reportedly been made to Kyiv.
Donald Trump appears to have won his trade standoff with Volodymyr Zelensky , as the Ukrainian president is set to give in and sign a deal giving the U.S. access to deposits of critical minerals
Zelensky said on Friday that officials from his country and the U.S. were working on concluding an economic deal to ensure that the accord worked and was fair to Kyiv
Trump has famously said that the Russia-Ukraine war would never have started had he been president and claimed he could bring the conflict to an abrupt halt – without ever revealing his plans for doing so.
The president has been clear that Ukraine must remunerate the US for the aid provided to support the war effort thus far. The US President has said the figure stands at $300 billion.
The prospect of extracting Ukraine’s natural resources has evidently been part of the Trump administration’s plan from the outset.
Republican Senator Lindsey Graham, a close ally of the US President, embarked on a trip to Kyiv last autumn shortly before Zelensky unveiled is Victory Plan and suggested that Ukraine’s mineral reserves could be put up for sale.
Graham and other lawmakers at the time released a statement in which they positioned Ukraine as a potential economic partner of the US that could reduce America’s reliance on the likes of China for rare earth minerals.
Last week, US Treasury Secretary Scott Bessent offered Kyiv a deal as part of ongoing negotiations to secure Ukraine’s long-term security in the event of a ceasefire agreement with Russia.
According to a private draft of the proposal seen by The Telegraph, this would see the US take 50% of revenues received by Ukraine from the extraction of natural resources.
It would also grant the US 50% of the financial value of ‘all new licences issued to third parties’ for the future monetisation of these resources.
Bessent said such an ‘economic commitment’ would grant Ukraine a ‘long-term security shield’ provided by Washington – an idea that Zelensky first proposed as part of his ‘Victory Plan’ unveiled before Western allies and Ukraine’s parliament in October.
At that time, the Ukrainian President said Ukraine could sign an agreement with the US, EU and other unnamed allies that would allow for joint investments and use of Ukraine’s natural resources.
But upon reviewing the deal proposed last week by Bessent, Zelensky and his aides discovered that there were no concrete security guarantees outlined in the document.
Instead, it seemed more akin to the likes of an exploitative contract imposed on vanquished adversaries, not a mutually beneficial agreement between allies.
It came shortly after Trump suggested that Kyiv could begin to compensate the US for aid sent over the last three years with ‘like $500 billion worth’ of critical minerals.
Ukraine has trillions of dollars worth of natural resources, including many rare earth minerals vital for the manufacture of modern technology – though many are found in the industrial heartlands in the east, currently occupied by Russia.
Mining analysts and economists say Ukraine currently has no commercially operational rare earth mines.
Many companies slowed or ceased operations at the start of the war, and restarting industry in a war-torn country will present a mammoth challenge for any companies willing to take the risk.
Trump and his supporters have roundly criticised the scale of US military and financial support for Kyiv, and he previously labelled Zelensky ‘the greatest salesman on Earth’
This handout photograph taken and released by the Ukrainian State Emergency Service on February 21, 2025 shows firefighters working to push out a fire on an industrial facility after a Russian strike in the Poltava region, amid Russian invasion in Ukraine.
Zelensky refused to sign the deal as offered last week, telling reporters over the weekend: ‘It was not in our interests today… not in the interests of sovereign Ukraine’.
Senior government sources told the Financial Times that the deal provided scant details of what this ‘long-term security shield’ would look like.
‘When we looked at the details there was nothing there [about future US security guarantees],’ one official said, while another told The Telegraph that a clause in the contract awarded the US ‘a lien on revenues’.
In other words, the official said, the contract meant ‘pay us first, and then feed your children’.
Zelensky told reporters later Monday that any US-Ukraine economic treaty must see security guarantees ‘included at least somehow’, adding that his country was not just a ‘simple supplier of raw materials’.
‘Ukraine is blessed with significant lithium, titanium, and other rare earth minerals that are needed by the American economy.
‘Expanding economic cooperation with Ukraine makes America stronger and accelerates Ukraine’s economic recovery,’ the statement read.
‘An agreement with Ukraine in this area would make the US less dependent on foreign adversaries for rare earth minerals.’
Earlier this month, Zelensky also showed reporters the location of Ukraine’s mineral deposits, unfurling a map on a table in the heavily defended president’s office in Kyiv.
Around half of it looked to be on Russia’s side of the current frontlines, but large amounts of vital resources were found in central Ukraine.
‘If we are talking about a deal, then let’s do a deal, we are only for it,’ Zelensky said two weeks ago, emphasising Ukraine’s need for security guarantees from its allies as part of any settlement.
But the contract offered by Bessent was ruthless, seeking to exploit Ukraine’s vast resources for little in return.
According to the private draft seen by the Telegraph, the contract not only covered mineral resources, but the ‘economic value associated with… oil and gas resources, ports, other infrastructure (as agreed)’, leaving it unclear what else might be encompassed.
‘This agreement shall be governed by New York law, without regard to conflict of laws principles,’ it stated, going on to say that ‘for all future licences, the US will have a right of first refusal for the purchase of exportable minerals’.
An analysis of the contract’s terms by the Telegraph concluded that, if the terms of the draft dated February 7, 2025 draft were accepted by Ukraine, Trump’s demands would amount to a higher share of Ukrainian GDP than reparations imposed on Germany following World War I.
