MUNICH — Ukrainian President Volodymyr Zelenskyy has instructed his ministers not to endorse a recent proposal granting the United States access to Ukraine’s rare earth minerals, arguing the agreement largely serves American interests. This proposal was a significant topic during Zelenskyy’s discussions with U.S. Vice President JD Vance at the Munich Security Conference. According to informed sources, the proposal lacked adequate security guarantees for Ukraine in exchange for the mineral access.

Zelenskyy’s choice to reject the agreement, at least temporarily, has been characterized as “short-sighted” by a senior official within the White House. In a statement made to the press in Munich, Zelenskyy expressed, “I didn’t allow the ministers to sign the relevant agreement because, in my view, it is not prepared to protect us and our interests.” The terms of the proposal appeared to prioritize how the U.S. might utilize the rare earth minerals as a form of compensation for previously extended support and as a payment method for future assistance.

Ukraine is home to substantial reserves of vital minerals utilized in industries such as aerospace, defense, and nuclear energy. The previous administration exhibited interest in these resources to reduce dependency on China; however, Zelenskyy emphasized that any extraction efforts must be tied to security arrangements that would deter further Russian aggression. “It is crucial to me that there is a connection between security guarantees and investment,” he stated.

While Zelenskyy refrained from detailing the reasons behind his instruction to not sign the agreement—which had been presented to Ukrainian officials by U.S. Treasury Secretary Scott Bassent earlier in the week—it has drawn criticism. One former senior official described it as a “colonial agreement” that was unacceptable.

Although White House spokesperson Brian Hughes did not confirm the proposal’s specifics, he remarked on Zelenskyy’s decision as being short-sighted, noting it as an excellent opportunity presented by the Trump administration. As U.S. reluctance to provide further aid increases, Hughes stated that an accord regarding minerals could enable American taxpayers to recover funds sent to Ukraine while bolstering its economy.

In statements made to the media, Hughes conveyed that establishing binding economic connections with the U.S. would serve as a primary deterrent against future aggression and would play an essential role in achieving enduring peace. He emphasized that this understanding is shared among the U.S., Russia, and it is crucial for Ukraine to acknowledge it as well.

Concerns were raised regarding the security of mineral sites against possible Russian attacks in discussions held between U.S. officials and their Ukrainian counterparts in Munich. It was indicated that the questions surrounding the safety of these deposits in the context of ongoing hostilities had not been addressed in the proposal. The senior official noted that a significant aspect of discussions would revolve around the security measures for any mineral extraction projects conducted in Ukraine.

It was underscored that any agreement would have to comply with Ukrainian law and be accepted by the nation’s populace. “The subsoil belongs to Ukrainians under the constitution,” remarked Kseniiia Orynchak, founder of the National Association of Mining Industry of Ukraine, stressing the need for public backing for any potential deal.

During their meeting, Zelenskyy and Vance did not delve deeply into the specifics of the U.S. document, although the nature of their discussions was described as “very good” and “substantive.” Zelenskyy articulated to Vance that for true peace to be achieved, Ukraine must enter negotiations from a position of strength and emphasized the importance of U.S. negotiators visiting Ukraine. He asserted that the U.S., Ukraine, and European nations should be involved in discussions with Russia.

However, Gen. Keith Kellogg, Trump’s special envoy for Ukraine and Russia, hinted at excluding European nations from Ukraine-Russia negotiations despite Zelenskyy’s insistence on their inclusion. “You can have the Ukrainians, the Russians, and clearly the Americans at the table talking,” he stated, suggesting that a realistic approach would not involve European nations.

Ukraine is poised to deliver a “counter proposal” to the U.S. shortly. Zelenskyy emphasized the need for any agreements to yield both financial benefits and security, stating, “If we want to sign something, we must understand that it will work.”