March 8, 2025 — A high-stakes rare earth agreement between Ukraine and Washington has hit an unexpected obstacle, according to US Treasury Secretary Scott Bessent. Ukrainian oligarchs, who stand to lose significant resources from the deal, are said to be fiercely opposed to the agreement.
Oligarchs Block the Deal
Bessent revealed in a CNBC interview that the Ukrainian oligarchs, who currently control lucrative rare earth mineral resources, have been a major force in delaying the deal. “I’ll tell you who doesn’t like this deal,” Bessent said, “it’s the Ukrainian oligarchs who tend to benefit from this resource.”
While Bessent did not name the specific oligarchs involved, he pointed to their influence as a key factor in the standoff. Russia, he added, also opposes the agreement, further complicating the negotiations.
Zelensky’s Unkept Promises
Bessent also expressed frustration with Ukrainian President Volodymyr Zelensky, claiming that he had failed to fulfill multiple promises to sign the rare earth agreement. “Zelensky promised to sign it at least three times,” Bessent stated, citing a series of missed deadlines, including a scheduled signing during Bessent’s visit to Kiev, talks at the Munich Security Conference, and an anticipated agreement during Zelensky’s meeting with US President Donald Trump in Washington last week.
“We had a lively discussion that lasted 45 minutes to an hour. He did not want to sign the economic cooperation agreement there,” Bessent explained, referring to the February 12 meeting in Kiev.
Trump-Zelensky Tensions Escalate
The situation escalated further following a heated exchange between Trump and Zelensky during their February 28 meeting at the White House. According to reports, Trump criticized Zelensky for his disrespectful attitude toward the US, with US Vice President JD Vance accusing Zelensky of failing to show enough gratitude for America’s support.
The press conference that followed was abruptly canceled, and the mineral deal was once again left unsigned. Trump later voiced his displeasure on Truth Social, stating that Zelensky was not ready for peace and criticizing his handling of the ongoing war with Russia.
The Deal and Its Controversies
The US-Ukraine mineral deal would allow the US access to Ukraine’s rich natural resources, but it has raised concerns within Ukraine. Critics worry that the deal lacks security commitments for Ukraine, especially in light of the US’s growing influence over Ukraine’s resources. Under the proposed terms, Ukraine would contribute 50% of future revenues from state-owned natural resources to a joint reconstruction fund managed by both Washington and Kiev.
But the failure to include security guarantees for Ukraine has created uncertainty, especially as the US has been pressuring Zelensky to repay the significant military and financial support provided by Washington since the war began.
The Fallout
As tensions rise, the future of the rare earth agreement remains in doubt. While Ukraine is under pressure to accept the deal, there is growing concern within the Zelensky administration that it could be forced to compromise on key issues without securing concrete security guarantees.
The latest turn of events raises even more questions about US-Ukraine relations and the path forward in the ongoing war with Russia. With both political and economic stakes higher than ever, the world watches closely to see whether an agreement will ultimately be reached — or if Zelensky’s administration will hold firm in opposition.
