This is reported by RBK-Ukraine referencing The Telegraph. The information comes from Kontrakty.UA.
The publication has obtained a draft preliminary agreement marked "Privileged and Confidential," dated February 7, 2025.
According to the draft contract, the United States is offering Ukraine a deal worth $500 billion. This agreement includes the management of Ukraine's rare earth minerals, as well as ports, infrastructure, and most resources, including oil and gas.
Additionally, under the document, the US and Ukraine are to establish a joint investment fund to ensure that "hostile parties to the conflict do not benefit from the reconstruction of Ukraine."
The publication noted that President Zelensky himself proposed the idea of granting the US a direct stake in Ukrainian rare earth elements and critical minerals during a visit to Trump Tower in September of last year, hoping to smooth the path for continued arms supplies. He expected this would lead American companies to start operating on the ground, creating a political leverage that would deter Vladimir Putin from a renewed attack.
Some mineral deposits are located near the front lines in eastern Ukraine or on territories occupied by Russia. Zelensky emphasized the danger that strategic stocks of titanium, tungsten, uranium, graphite, and rare earth metals could fall into Russian hands. "If we are talking about a deal, then let's make a deal, we are all for it," the president said.
A Challenging Agreement
The Telegraph suggests that the head of state did not anticipate facing conditions typically imposed on aggressor states that have suffered defeat in war. They are also worse than the financial sanctions imposed on Germany and Japan after their defeat in 1945, when both countries eventually became net recipients of funds from the victorious allies.
"If this project is approved, Trump's demands would constitute a larger share of Ukraine's GDP than the reparations imposed on Germany under the Treaty of Versailles, later reduced at the London Conference in 1921 and under the Dawes Plan in 1924. At the same time, he seems willing to completely let Russia off the hook," the publication writes.
Moreover, under the agreement, the US would receive 50% of the profits from the extraction of natural resources and 50% of the value of new licenses if Ukraine issued new licenses to "third parties."
Washington would also have a preferential right to purchase exported minerals. The agreement is governed by New York law, and the US receives sovereign immunity. The American fund would have exclusive rights to determine the terms of future investment projects.
The Value of Metals and Commercial Interests
Ukraine likely has the largest lithium basin in Europe. However, lithium prices have dropped by 88% since the "bubble" burst in 2022. Significant reserves are opening up worldwide. The McDermitt Caldera in Nevada is considered the largest lithium deposit on the planet, with reserves of 40 million metric tons, enough for the US to outpace China.
Furthermore, The Telegraph notes that Ukraine has cobalt, but most electric vehicle batteries now use lithium iron phosphate and no longer require cobalt. Additionally, sodium-ion and sulfur batteries will limit future demand growth for lithium. The same goes for recycling. The narrative of a shortage of minerals is greatly exaggerated.
In light of the situation, the publication states that Ukraine is unable to meet the US president's demand for $500 billion in any significant timeframe.
"In genuine commerce, the other party can usually walk away. Trump's demand is a coercive iron fist from a neo-imperialist state against a weaker nation, backed against the wall, all for a commodity benefit that exists mainly in Trump's mind. Zelensky does not have that luxury. He must choose between military incursion into Ukraine by Putin and economic encroachment into Ukraine by his own ally," The Telegraph concludes.
Moreover, the publication reminded that the five US Congress-approved military aid packages to Ukraine amount to $175 billion, of which $70 billion was spent in the US on weapons production. Part of this is in the form of humanitarian grants, but the majority consists of borrowed funds that need to be repaid. Thus, the total volume of US military aid to Ukraine is far less than the $500 billion mentioned by Trump.
Trump's Agreement on Rare Earth Metals
Ukraine and the United States are discussing a strategic partnership agreement that involves transferring 50% of Ukrainian rare earth metal deposits under the control of American companies.
Donald Trump stated that the agreement aims to compensate the US for the military assistance provided to Ukraine.
Republican Senator Lindsey Graham at the Munich Security Conference urged Europeans to vigorously support this idea, as it obliges Washington to defend the peace treaty.
President Zelensky stated that Washington must provide security guarantees for this document.
Additionally, the US is interested in partnering with its companies in projects related to the extraction of strategic raw materials, energy, and in having them enter the ownership structure of state companies in Ukraine.