Ukrainian President Volodymyr Zelenskyy has declined a proposal by U.S. President Donald Trump to acquire approximately 50% of Ukraine’s rare earth mineral rights. Valued at several trillion dollars, Ukraine’s mineral reserves include lithium, titanium, and graphite which are essential for high-tech industries. The proposal was delivered by U.S. Treasury Secretary Scott Bessent as part of a bid to compensate Washington for assistance to Kyiv. Trump had suggested that Ukraine owed the United States $500 billion worth of resources for its past military support.
However, Zelenskyy is seeking better terms, including U.S. and European security guarantees. Trump’s proposal did not include provisions for future assistance, which Zelenskyy deems necessary. Zelenskyy’s team has developed an offer for a mineral partnership in exchange for security guarantees, which was announced earlier this month.
The EU has floated the idea of resuming purchases of Russian pipeline gas as part of a potential settlement of the Russia-Ukraine war. Backed by Hungarian and German officials, the proposal argues that the move could give both Russia and Europe incentives to maintain a peace deal while stabilizing the continent’s energy market.
Last month, Slovakia’s Prime Minister Robert Fico revealed that he’s not ruling out the resumption of gas through Ukraine following the expiration of a 5-year transit deal between Moscow and Kyiv. Fico has been pushing President Volodymyr Zelenskiy to restart the transit, citing higher energy costs for Slovakia and the whole region.
‘‘The pipeline that runs through Slovakia has a capacity of 100 billion cubic meters,” Fico told reporters in Brussels on Thursday. “I want to do everything to ensure it is used in the future,’’ he added.
Europe’s vast natural gas inventories are currently depleting at the fastest clip since 2018 as cold weather ramps up heating needs. According to Gas Infrastructure Europe data, Europe’s gas storage was only 49% full on February 10, well below last year’s 67% mark at a corresponding point and the 10-year average of 51% for the same period. The continent’s seasonal draw has been bigger than in the previous two winters due to colder weather, lower wind power generation due to low wind speeds and the termination of Russian gas imports via Ukraine.
The situation is even more dire in Germany, Europe’s largest economy, with its underground sites currently only 48% full, a significant decrease from the 72% recorded at the same time last year.
By Alex Kimani for Oilprice.com
