US-Ukraine rare earths deal terms worse than Germany’s post-war reparations – The Telegraph

The Donald Trump administration has enforced stringent terms on Ukraine for a mineral deal in exchange for military aid akin to those typically imposed on defeated aggressor nations. These terms surpass the scope of restrictions placed on Germany and Japan following World War II.

This information is outlined in a draft agreement marked "Privileged and Confidential," dated February 7, 2025, which the British newspaper The Telegraph obtained.

As noted in the document, the contract offered to Ukraine effectively means that Ukraine will continue to depend on the United States economically indefinitely.

"The terms of the contract that landed at Volodymyr Zelensky's office a week ago amount to the US economic colonization of Ukraine in legal perpetuity. It implies a burden of reparations that cannot possibly be achieved. The document has caused consternation and panic in Kyiv," the publication emphasizes.

According to the document, the US will receive:

• 50% of the revenues from resource extraction,
• 50% of the cost of "all new licenses issued to third parties" for future monetization of resources.

Such revenues will be "seized" in favor of the US.

"That clause means 'pay us first, and then feed your children,'" said one source close to the negotiations.

The document also states that the US will have the first right to purchase Ukrainian minerals, and Washington will receive significant control over the Ukrainian raw materials economy. In addition, a special US fund will receive the exclusive right to determine the rules and conditions for issuing future licenses and projects.

"President Zelensky proposed giving the US a direct stake in Ukraine's rare earth elements and critical minerals on a visit to Trump Tower in September, hoping to smooth the way for continued arms deliveries […]

He probably did not expect to be confronted with terms typically imposed on aggressor states defeated in war. They are worse than the financial penalties imposed on Germany and Japan after their defeat in 1945. Both countries were ultimately net recipients of funds from the victorious allies," the publication emphasizes.

The terms of the agreement actually surpass the demands of the 1919 Treaty of Versailles imposed on Germany. In comparison, the Weimar Republic's reparations were set at 132 billion gold marks (approximately $269 billion today), whereas Ukraine is being asked to pay $500 billion.

"The agreement proposed by Trump does not provide any financial assistance to Ukraine, but only sets restrictions and requirements that could hinder the country's economic development," The Telegraph clarifies.

In an interview with Fox News, Donald Trump said that Ukraine "effectively agreed" to transfer $500 billion. He emphasized the country's enormous resource potential, particularly rare earth metals, oil, and gas.

"They have extremely valuable land in terms of rare earth metals, oil and gas, and other resources," he said.

At the same time, Trump warned that in case of refusal, Ukraine "will be handed over to Putin on a plate."

"Ukraine cannot possibly meet his $500bn demand in any meaningful timeframe, leaving aside the more significant matter of whether it is honorable to treat a victim nation in this fashion after it has held the battle line for the liberal democracies at enormous sacrifice for three years. Who really has a debt to whom, may one ask?

Trump's demand is iron-fist coercion by a neo-imperial power against a weaker nation with its back to the wall, and all for a commodity bonanza that exists chiefly in Trump's head," the publication summarizes.

For reference:

Earlier, US President Donald Trump stated that he wanted to finalize an agreement with Kyiv in which Ukraine would supply the United States with rare earth minerals needed for electronics in exchange for American aid.

In response, Zelensky stated that Ukraine was prepared to reach an agreement with the United States on supplying rare earth resources. However, he emphasized that he did not intend to "give away" these resources, instead proposing a mutually beneficial partnership.

The head of state also mentioned that Ukraine was open to American investment in extracting its rare earth minerals in exchange for US assistance. He noted that he had already discussed this with US President Donald Trump in September 2024 and included it as a key point in his Victory Plan.

On February 15, reports emerged that the Trump Administration proposed Ukraine transfer 50% ownership of its rare earth minerals to the United States. However, President Volodymyr Zelensky declined to sign the proposed agreement.

↓Read also

Rare earth elements for peace: What you need to know about Ukraine's critical minerals