In a dramatic escalation of tensions, former U.S. President Donald Trump has issued a stern warning to Ukrainian President Volodymyr Zelenskyy, cautioning him against withdrawing from a crucial rare earth minerals deal with the United States. Speaking to Business Standard, Trump made it clear that any attempt by Kyiv to renegotiate or back out of the agreement would come at a high cost.
“He’s trying to back out of the rare earth deal,” Trump said. “If he does that, he’s got some problems. Big, big problems. We made a deal on rare earth. And now he’s saying, ‘Well, you know, I want to renegotiate the deal.’”
The rare earth minerals deal, originally seen as a strategic move to deepen economic and security ties between Kyiv and Washington, has now become a flashpoint in the already strained U.S.-Ukraine relationship. Ukrainian officials had previously believed that the agreement would pave the way for long-term American support, particularly in the face of Russian aggression.
Trump’s latest remarks follow his recent criticisms of Russian President Vladimir Putin’s comments about Zelenskyy. However, despite his stance against Russia, Trump also dismissed Ukraine’s aspirations to join NATO, reinforcing his long-standing skepticism about the alliance’s expansion.
“He wants to be a member of NATO. He was never going to be a member of NATO. He understands that,” Trump asserted, downplaying Kyiv’s hopes of securing membership in the transatlantic military bloc.
While en route from Florida to Washington on Sunday, Trump acknowledged efforts to resolve the ongoing war in Ukraine, claiming, “We’re making a lot of progress.” However, he suggested that deep-seated hostilities between Zelenskyy and Putin could hinder swift peace negotiations.
Ukraine had initially agreed to a partnership with Washington for the joint development of its vast mineral resources, including oil and gas. However, Kyiv was alarmed by the stringent financial demands embedded in the agreement. The original draft reportedly included provisions requiring Ukraine to allocate $500 billion in potential revenue to the U.S., a condition that sparked widespread backlash in Kyiv and among European allies.
Olha Stefanishyna, Ukraine’s Deputy Prime Minister and Justice Minister, emphasized the broader strategic implications of the deal. “The minerals agreement is only part of the picture. We have heard multiple times from the U.S. administration that it’s part of a bigger picture,” she told the Financial Times.
Faced with resistance from Kyiv, the final version of the agreement, dated February 24 and reviewed by the Financial Times, introduced a compromise: Ukraine would contribute 50% of future proceeds from the monetization of state-owned mineral resources—including oil, gas, and logistics—into a fund designated for investment in Ukrainian projects. Crucially, this revised deal excludes resources currently generating revenue for Ukraine, meaning it will not impact the existing operations of Naftogaz or Ukrnafta, the country’s largest oil and gas producers.
Despite these revisions, the deal remains controversial, with Trump reportedly referring to Zelenskyy as a “dictator” following his refusal to accept the initial terms. The former U.S. president also suggested that Ukraine bore some responsibility for the ongoing war—a statement that has further fueled tensions between the two leaders.
As the geopolitical chess game between Washington and Kyiv continues, Trump’s latest warning underscores the high stakes involved. With Ukraine caught between American expectations and its own strategic interests, the fate of the minerals deal could have lasting implications for the war-torn nation’s economic and political future.
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