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Talks between Ukrainian President Volodymyr Zelenskiy and U.S. Vice President JD Vance in Munich ended without a final deal on critical minerals. Both sides remain in negotiations, seeking an agreement that could boost U.S. support for Ukraine. This deal is crucial for Kyiv as it works to secure long-term backing from President Donald Trump’s administration.

Key Disagreements Delay Progress

Ukraine had earlier proposed an updated agreement allowing U.S. investors access to its vast mineral wealth. These resources include rare earth elements, titanium, uranium, and lithium. These minerals are vital for global industries, including defense and technology.

However, Ukraine raised concerns about the U.S. version of the agreement, which was presented last Wednesday. One of the main sticking points is security guarantees. Kyiv wants assurances from both the U.S. and Europe that they will step in to prevent future Russian aggression. Without these commitments, Ukrainian officials worry that their country will be left vulnerable while opening up its valuable resources to foreign investment.

Zelenskiy described the meeting as constructive and expressed his willingness to move forward. Yet, members of his delegation admitted that major issues remain. He stressed that Ukraine is not selling off its natural wealth but instead seeking a fair partnership that benefits both nations.

Economic and Political Stakes

The Trump administration has made it clear that continued U.S. military aid depends on securing a minerals agreement. Washington is particularly interested in rare earth elements, which are essential for military technology and clean energy. The White House has estimated that Ukraine’s mineral reserves could be worth as much as $500 billion. This figure highlights the importance of the deal not just for Ukraine, but for American industries that rely on these materials.

U.S. Treasury Secretary Scott Bessent delivered Washington’s proposal to Ukraine. He emphasized that the U.S. wants deeper economic ties with Ukraine. One aspect of the proposal involves applying American privatization models to Ukraine’s resource sector. Some Ukrainian lawmakers, however, worry that this could mean U.S. firms taking control of key assets without sufficient oversight.

Tensions Behind Closed Doors

During a private meeting with U.S. senators in Munich, Zelenskiy expressed frustration. He argued that Ukraine should not be pressured into signing a deal without enough time to review all terms. Sources familiar with the discussions revealed that some Ukrainian officials found the U.S. offer to be heavily one-sided.

Democratic Senator Brian Schatz, who attended the meeting, admitted that revisions were needed. “We need to make sure this deal is fair to both parties,” he said, acknowledging Ukrainian concerns. Other senators stressed that securing a strong minerals deal could strengthen U.S.-Ukraine relations in the long run.

Ukraine’s Strategic Role

Ukraine’s vast mineral wealth makes it a key player in the global supply chain. Europe and the U.S. are both eager to reduce their dependence on China, which currently dominates the market for rare earth elements. A deal with Ukraine could help Western countries diversify their sources of these crucial materials.

However, Ukrainian officials insist that their country must benefit fairly. Some worry that rushing into a deal under pressure from Washington could harm Ukraine’s economic independence. Others fear that any agreement without security guarantees would leave Ukraine exposed to future threats from Russia.

Looking Ahead

Negotiations are expected to continue in the coming weeks. Both Ukraine and the U.S. are under pressure to reach a compromise. For Ukraine, the stakes are high—not just in securing U.S. military aid, but also in ensuring its long-term economic and geopolitical security.

For now, the future of U.S.-Ukraine relations remains uncertain. The outcome of these talks will have lasting consequences. As the discussions unfold, world leaders and investors will be watching closely.

For further updates, visit Financial Mirror.