Ukrainian officials were advised against signing an agreement with the United States regarding rare earth minerals, as the document primarily served US interests without providing specific security guarantees, according to President Volodymyr Zelensky. This information was shared by one current and one former senior official familiar with the discussions.

The proposal suggested that the US could utilize Ukraine’s rare earth minerals as a form of compensation for the support already extended by the Biden administration and as a means of payment for future assistance, as indicated by senior Ukrainian officials who spoke on the condition of anonymity. A senior official from the White House characterized Zelensky’s decision to reject the agreement as “short-sighted.”

Ukraine possesses significant reserves of critical minerals essential for the aerospace, defense, and nuclear sectors. The previous Trump administration expressed interest in accessing these resources to lessen reliance on China. However, Zelensky emphasized that any extraction must be linked to security guarantees that would prevent future Russian aggression.

“I refrained from allowing the ministers to sign the agreement because, in my opinion, it does not adequately safeguard our interests,” Zelensky stated to The Associated Press during the Munich Security Conference in Germany.

Zelensky noted that while the US provided a document, it lacked concrete security guarantees. “For me, the connection between security guarantees and investment is crucial,” he added. He did not elaborate on the reasons behind his directive to his officials not to sign the document presented by US Treasury Secretary Scott Bassent during his visit to Kyiv. A former senior official remarked, “It’s a colonial agreement, and Zelensky cannot sign it.”

White House National Security Council spokesperson Brian Hughes refrained from directly confirming the proposal but stated that “President Zelensky is overlooking the significant opportunity presented to Ukraine by the Trump Administration.” The Trump administration has expressed fatigue regarding the provision of additional U.S. aid to Ukraine, and Hughes noted that a minerals agreement could enable American taxpayers to “recover” funds sent to Kyiv while simultaneously bolstering Ukraine’s economy.

Hughes emphasized that the White House views “strong economic connections with the United States as the most effective safeguard against future aggression and a crucial element of enduring peace.” He remarked, “The U.S. acknowledges this, the Russians acknowledge this, and it is essential for the Ukrainians to acknowledge this as well.”

During discussions in Munich, U.S. officials engaged with their Ukrainian counterparts with a focus on commercial interests, particularly the specifics of mineral exploration and the potential for a partnership with Ukraine, according to a senior official.

The potential worth of Ukraine’s mineral deposits has yet to be addressed, as many areas remain unexplored or are located near conflict zones. The U.S. proposal seemingly did not consider how to secure these deposits amid ongoing Russian hostilities. The official indicated that the U.S. lacked “immediate solutions” to this concern and that one of the key outcomes from the Munich discussions would be to determine how to ensure the safety of any mineral extraction operations in Ukraine, including personnel and infrastructure.

Any agreement must comply with Ukrainian law and be acceptable to the Ukrainian populace, as stated by a senior Ukrainian official. Kseniiia Orynchak, founder of the National Association of Mining Industry of Ukraine, previously noted, “Subsoil belongs to Ukrainians under the Constitution,” suggesting that any deal would require public support.

Zelensky and Vance did not delve into the specifics of the US document during their meeting on Friday at the Munich Security Conference, according to a senior official. The meeting was described as “very good” and “substantive,” with Vance emphasizing that both he and Trump are focused on achieving a sustainable and lasting peace.

Zelensky conveyed to Vance that genuine peace necessitates Ukraine being in a “strong position” at the outset of negotiations. He underscored the importance of US negotiators visiting Ukraine and insisted that the US, Ukraine, and Europe must be involved in discussions with Russia.

However, Gen. Keith Kellogg, Trump’s special envoy for Ukraine and Russia, largely excluded European representatives from any Ukraine-Russia negotiations, despite Zelensky’s appeal. “You can have the Ukrainians, the Russians, and clearly the Americans at the table talking,” Kellogg stated at an event organized by a Ukrainian businessman during the Munich Security Conference. When asked if this implied that Europeans would be left out, he responded, “I’m a school of realism. I think that’s not going to happen.”

Ukraine is currently preparing a “counter proposal” that will be presented to the US in “the near future,” the official noted.

Zelensky remarked, “I think it’s important that the vice president understood me that if we want to sign something, we have to understand that it will work.” He added that this means it “will bring money and security.”