US and Ukrainian officials met on Friday on a US proposal to gain access to Ukraine’s mineral wealth, sources with knowledge of the matter added that the prospect of a breakthrough is scarce given the “hostile” atmosphere of the meeting.
Reuters said tensions in the Washington talks are more vast than the original version, due to the latest proposals from the Trump administration.
“The negotiation environment is very hostile,” sources pointed to a “massive-dominated” draft filed last month by the Trump administration.
A Treasury spokesperson confirmed the discussion and called it “essentially technical.”
The latest draft will give the US privileged access to Ukrainian mineral deposits and require Kiev to include all revenue from the exploitation of natural resources by Ukrainian provinces and private companies into a co-investment fund.
However, the proposed deal will not provide US security guarantees to Kiev, the top priority of Ukrainian President Voldymir Zelensky, for the fight against Russian forces.
Sources said one of the “Easter eggs” in the document was a US request that the US government’s international development finance company manage natural gas pipelines from Ukrainian Russian energy giant Gazprom to Europe.
The Ukrainian government has hired law firm Hogan Lovells as an external advisor to the mineral trade, sources said.
Zelenskiy said on Wednesday that mineral trade should make profits for both countries and could consist of ways that will help modernize Ukraine.
Ukrainian top officials, including Prime Minister Dennis Schmichal and Prime Minister Sergii Markenko, will be in Washington in two weeks for the International Monetary Fund and World Bank meeting, including the Ukraine-focused Ministerial Conference on April 25th.
US President Donald Trump is seeking a contract covering Ukrainian minerals, including precious rare earths, as part of his efforts to end the war and as a way to recover billions of dollars in US military assistance to Kiev.