Zelensky issues ultimatum to Trump over US mineral deal

Ukrainian President Volodymyr Zelensky has said that Ukraine will not agree to any deal over its minerals with the U.S. if it endangers Kyiv’s aspirations to join the European Union.

The Ukrainian president told a press briefing on Friday that Kyiv had received a draft agreement on its valuable resources from the US. But a Ukrainian media outlet said the deal may go against the economic sovereignty required for Kyiv’s EU accession.

The Financial Times reported that the latest version of the agreement proposed by the U.S. would see Washington control Ukraine’s natural resources through a joint investment fund.

This would apply to all mineral resources, including oil and gas, and major energy assets which Ukrainian officials fear would undermine their nation’s sovereignty. The initial version of the agreement would establish a fund to which Ukraine would contribute 50 percent of proceeds from the extraction of state-owned resources, including oil, gas, and logistics infrastructure.

The version Kyiv approved earlier does not include security guarantees, but says that the fund would be reinvested for the benefit of Ukraine. The argument becomes whether it is better for Ukraine to take their chances without continued US military support, or take a deal which many in Ukraine view is exploitative.

We have yet to see the Trump administration’s reaction, but as we pointed out a few weeks ago, Ukraine and Europe need to be careful with how much they continue to ask of the US, while also criticizing the country, or the US could stop the support.