The US Treasury Secretary has defended Donald Trump’s initiative to establish an agreement with Ukraine for the development of its natural resources and critical minerals. The Secretary emphasized that the plan aims to support Ukraine’s postwar growth and does not involve coercive economic pressure.
Scott Bessent articulated these points in an op-ed for the Financial Times as Trump administration officials strive to negotiate what they describe as an economic partnership with Kyiv. This effort is part of a broader diplomatic push to mediate a peace deal between Russia and Ukraine.
Despite US pressure, Ukrainian officials have thus far rejected demands for such an agreement. Officials in Kyiv are interpreting Trump’s recent criticisms of Ukrainian President Volodymyr Zelenskyy as tactics to pressure Ukraine into agreeing to a mineral deal. Trump has recently called Zelenskyy a dictator and suggested that Ukraine, not Russia, initiated the war.
Bessent outlined details of the US proposal in his op-ed, indicating that Ukraine’s revenue from natural resources and infrastructure would be allocated to a fund dedicated to the country’s long-term reconstruction and development. The United States would hold economic and governance rights in future investments related to this fund. However, Bessent did not specify how the proceeds from mineral extraction would be distributed between the fund and the US. Trump has framed the mineral deal as a mechanism for Ukraine to repay previous US military aid.
A previous draft of the agreement, reportedly accurate according to Ukrainian media, suggested that revenues would be legally claimed by the United States. It also noted that the US would determine the allocation of funds for reconstruction projects.
Bessent stated in his op-ed that the agreement would involve high standards of transparency, accountability, corporate governance, and legal frameworks to attract substantial private investment for Ukraine’s postwar growth. He asserted that US involvement would eliminate opportunities for corruption and insider deals.
The US Treasury Secretary recently traveled to Ukraine on an initial international trip to present the deal to President Zelenskyy. Although US officials, including Mike Waltz, Trump’s national security adviser, have expressed optimism about reaching a deal, Ukrainian officials remain cautious.
A source involved in the negotiations mentioned the need for further refinement of the draft, indicating that current obligations are skewed against Ukraine without sufficient American offers. Negotiations have continued intensively and are expected to proceed through the weekend.
Zelenskyy has expressed concerns about Bessent’s initial proposal, which demands 50% of rights to Ukraine’s rare earth and critical minerals in return for past military support without commitments of future aid. Senior Ukrainian officials have worked on a counterproposal, discussed with US special envoy Keith Kellogg in Kyiv.
Zelenskyy is seeking security guarantees from the Trump administration in a revised proposal before agreeing to any deal. Bessent assured in his op-ed that the deal’s terms would prevent countries that didn’t contribute to Ukraine’s defense from benefiting from its reconstruction. He clarified that the US was not attempting to seize Ukraine’s resources coercively and emphasized that the US would not take ownership of physical assets in Ukraine nor burden it with additional debt, distinguishing their approach from those of other global actors.
