Trump plans to make Ukraine a US economic colony, exploiting its critical minerals

Donald Trump's fight with Zelensky reflects how the US treats Ukraine as a colony. He demands control of its rare earths & critical minerals, to weaken China, re-industrialize, and build tech products

The fight that broke out in the White House between US President Donald Trump and Ukraine's leader, Volodymyr Zelensky, on February 28 was a stark symbol of the colonial relationship between the two countries.

"You're in no position to dictate", Trump yelled at Zelensky in the Oval Office. "You don't have the cards right now. With us, you start having cards".

The Trump administration has sought to impose an exploitative deal that will "make Ukraine a US economic colony”, in the words of the conservative British newspaper The Telegraph.

Trump is demanding control over Ukraine's minerals, and plans to use revenue from the sale of its natural resources to pay the United States hundreds of billions of dollars, equivalent to roughly twice Ukraine's GDP.

The US government believes that Ukraine could have trillions of dollars worth of rare earth elements and other critical minerals, which are needed for advanced technologies.

Trump wants to re-industrialize the United States, and he is offering corporations access to Ukraine's resources to make their products.

This is part of Washington's attempt to remove China from the supply chain for critical minerals, which has been a top priority of the Pentagon and the US House select committee on the Communist Party of China.

The Telegraph reported that Ukraine’s resources could be worth $15 trillion, writing that its "minerals offer a tantalising promise: the ability for the US to break its dependence on Chinese supplies of critical minerals that go into everything from wind turbines to iPhones and stealth fighter jets".

Trump has stated that he wants to "un-unite" Russia and China, and his efforts to end the war in Ukraine also aim at splitting Moscow from Beijing.

Trump demands Ukraine pay the US twice its GDP

The US government pushed Ukraine into war with Russia, after expanding NATO up to Russia's borders and backing a coup d'etat that overthrow Ukraine's democratically elected, geopolitically neutral government in 2014. This set off a violent conflict that escalated into a massive proxy war between NATO and Russia in 2022.

Former US Defense Secretary Lloyd Austin stated clearly that Washington was using Ukraine to "weaken" Russia.

At different times, Trump has falsely claimed that the United States gave Ukraine $350 billion or $500 billion in aid. This is not true.

Independent analysts have calculated that the United States spent $119.7 billion on Ukraine-related "aid" since 2022.

According to the US Department of Defense, $182.8 billion was appropriated for military operations related to Ukraine from the end of 2021 to the end of 2024. The BBC noted that this figure includes military training in Europe and US weapons supplies.

Much of this "aid" consisted of US government contracts with private, for-profit weapons corporations, which produced the arms and ammunition that were sent to Ukraine.

In other words, the US military-industrial complex made a killing off of Ukraine "aid".

Regardless, Trump is demanding that Ukraine pay the United States at least $350 billion, which is nearly two times the size of the country's entire economy.

Ukraine's GDP in 2024 was reported by the IMF to be $184.1 billion -- although this figure is questionable, given the war.

The US wants Ukraine's critical minerals

Republican Senator Lindsey Graham, a close Trump ally, has repeatedly said that the United States wants to exploit Ukraine's critical minerals.

In a June 2024 interview on CBS, Graham stated:

What did Trump do to get the weapons flowing [to Ukraine during his first term]? He created a loan system.

They’re sitting on $10 to $12 trillion of critical minerals in Ukraine. They could be the richest country in all of Europe. I don’t want to give that money and those assets to Putin, to share with China.

If we help Ukraine now, they can become the best business partner we ever dreamed of. That $10 to $12 trillion of critical mineral assets could be used by Ukraine and the West, not given to Putin and China. This is a very big deal, how Ukraine ends.

In an interview on Fox News, just two weeks after Trump won the presidential election in November 2024, Graham argued that "the war is about money", and he promised that Trump would impose a deal to "enrich ourselves with rare earth minerals”:

We're 1000 days into this war. Ukraine is still standing.

This war is about money. People don't talk much about it. But you know the richest country in all of Europe, for rare earth minerals, is Ukraine: $2 to $7 trillion worth of minerals that are rare earth minerals, very relevant to the 21st century.

Ukraine is ready to do a deal with us, not the Russians. So it's in our interest to make sure that Russia doesn't take over the place.

It's the breadbasket of, really, the developing world. 50% of all the food going to Africa comes out of Ukraine.

We can make money and have an economic relationship with Ukraine, to be very beneficial to us, with peace.

So Donald Trump is going to do a deal to get our money back, to enrich ourselves with rare earth minerals.

It is not known if Ukraine actually has these large reserves of rare earths. This claim has been called into question.

Nevertheless, the Trump administration believes there could be trillions of dollars worth of untapped minerals, and it wants to carry out exploration operations.

In the disastrous White House press conference with Zelensky on February 28, Trump was asked if his plan would provide security for Ukraine, and he replied: "We have security in a different form. We'll have workers there, digging, digging, digging, taking the raw earth [sic], so that we can create a lot of great product in this country".

Trump also revealed that the United States plans to use Ukraine's critical minerals to create "weaponry that we're going to use in many locations".

"This is an incredible agreement for Ukraine, because we have a big investment in their country now", he said in the meeting with Zelensky. "And what they have, very few people have. And we're able to really go forward with very, very high-tech things, and many other things, including weaponry -- weaponry that we're going to use in many locations, but that we need for our country".

Throughout the press conference, Trump repeatedly referred to rare earth elements as "raw earth”.

A journalist asked Trump how exactly Ukraine will benefit from his one-sided deal. Trump responded by enthusiastically explaining how it will help the United States. The following is a partial transcript:

REPORTER: How does this provide long-term security for Ukraine?

DONALD TRUMP: Well, we don't know exactly how much, because we're going to be putting some money in a fund, that we're going to get from the raw earth, that we're going to be taking, and sharing, in terms of revenue. So it's going to be a lot of money will be made from the sale, and from the use of raw earth.

And as you know, our country doesn't have much raw earth. We have a lot of oil, and gas, but we don't have a lot of the raw earth. And what we do have is protected by the environmentalists. But that could be unprotected. But still, it's not very much.

They [in Ukraine] have among the best in the world, in terms of raw earth. So we're going to be using that, taking it, using it for all of the things we do, including AI, and including weapons, and the military. And it's really going to very much satisfy our needs.

So it's something that just worked out really well. We have a lot of oil, and we have a lot of gas. We have a lot, but we don't have raw earth.

So this has just about every component of the raw earth that we need for computers, for all of the things we do.

Trump's remarks criticizing US environmentalists over their opposition to the mining of rare earths was an implicit acknowledgment that the process is toxic.

In a peer-reviewed article published in 2024, scientific experts warned that the "long-term, large-scale mining and utilization of rare earths has caused serious environmental pollution and constitutes a global health issue, which has raised concerns regarding the safety of human health".

The US government has apparently made the assessment that it would be better to pollute Ukraine by exploiting rare earths there, where Americans won't suffer from the environmental impact.

Trump boasts of arming Ukraine

Trump's discourse on Ukraine has been utterly contradictory. He has alternated between blaming Democratic Presidents Joe Biden and Barack Obama for the war, while simultaneously boasting of supplying Kiev with weapons that Obama had initially refused to send.

Trump has repeatedly demanded credit for, during his first term, arming Ukraine with Javelin anti-tank missile systems, which were used to fight against Russian-backed forces in the eastern Donbas region.

In a press conference at the White House on February 25, a journalist asked Trump about the minerals deal. The following is a transcript of his response:

REPORTER: What does Ukraine get in return, Mr. President?

DONALD TRUMP: Uhh, $350 billion, and lots of equipment, and military equipment, and the right to fight on, and, originally, the right to fight.

Look, Ukraine, I will say, they're very brave, and they're good soldiers, but without the United States, and its money, and its military equipment, this war would have been over in a very short period of time.

In fact, I was the one that gave the Javelins. You remember the famous Javelins? That was me. That wasn't Obama; it wasn't Biden; it wasn't anybody else; it was me. And they wiped out a lot of tanks with those Javelins.

And the expression was that Obama gave sheets, and I gave the Javelins. That was a big deal, at the time. It wiped out -- that was the beginning, when people said, "Wow, that's something".

Well, that was American equipment. Without American equipment, this war would have been over very quickly. And American money, too. I mean, a lot of money.

During his fight with Zelensky on February 28, the US president made similar comments.

Trump blamed the Ukraine war on Biden, whom he called "stupid". At the same time, however, although he denied responsibility for the war, Trump could not help but brag about sending weapons to Ukraine during his first term, which exacerbated the war that was already ongoing at the time, before it massively escalated in 2022.

"We gave you military equipment, and your men are brave, but they had to use our military equipment", Trump yelled at Zelensky. "If you didn't have our military equipment, this war would have been over in two weeks".

Trump continued:

That wasn't with me; that was with a guy named Biden, who was not a smart person. That was with Obama, who gave you sheets, and I gave you Javelins.

I gave you the Javelins, to take out all those [Russian] tanks. Obama gave you sheets. In fact, the statement is, Obama gave sheets, and Trump gave Javelins.

You gotta be more thankful, because, let me tell you, you don't have the cards. With us, you have the cards. But without us, you don't have any cards.

USA will control Ukraine's reconstruction fund

The agreement that Trump has sought to impose on Ukraine is essentially a 21st-century version of an unequal treaty. The text of it has not been publicly released.

The conservative British newspaper The Telegraph obtained the early draft of the deal, which the media outlet said would "amount to the US economic colonisation of Ukraine, in legal perpetuity".

This draft stated that the United States would get control over Ukraine's "mineral resources, oil and gas resources, ports, other infrastructure (as agreed)”. It is based not on Ukrainian law, but rather New York law.

The Telegraph wrote:

The US will take 50pc of recurring revenues received by Ukraine from extraction of resources, and 50pc of the financial value of “all new licences issued to third parties” for the future monetisation of resources. There will be “a lien on such revenues” in favour of the US. “That clause means ‘pay us first, and then feed your children’,” said one source close to the negotiations.

It states that “for all future licences, the US will have a right of first refusal for the purchase of exportable minerals”. Washington will have sovereign immunity and acquire near total control over most of Ukraine’s commodity and resource economy. The fund “shall have the exclusive right to establish the method, selection criteria, terms, and conditions” of all future licences and projects. And so forth, in this vein. It seems to have been written by private lawyers, not the US departments of state or commerce.

This leaked draft caused international outrage, given how explicitly colonial it was.

To try to save face, US Treasury Secretary Scott Bessent published an op-ed in the Financial Times on February 22 explaining the Trump administration's plans for Ukraine.

Bessent is a billionaire hedge fund manager who previously worked for the billionaire oligarch George Soros, who is ironically a bugbear of Western conservatives.

Bessent traveled to Ukraine in February to negotiate the agreement with Zelensky.

In his FT article, Bessent explained that, under the deal, the United States will oversee a joint fund with the Ukrainian government. He wrote:

The terms of our partnership propose that revenue received by the government of Ukraine from natural resources, infrastructure and other assets is allocated to a fund focused on the long-term reconstruction and development of Ukraine where the US will have economic and governance rights in those future investments.

The Treasury secretary strongly implied that US corporations will benefit from these investments, writing, "When I was in Kyiv, I met with many American companies that have been on the ground in Ukraine for years".

Bessent stressed that the "terms of this partnership will mobilise American talent, capital, and high standards".

In a separate, accompanying article, the Financial Times noted that, in his op-ed, Bessent had conveniently left out how much of Ukraine's export revenue will be paid to the US.

A draft of the deal obtained by the FT stated that Ukraine's fund will be set up “with the encumbrance (legal claim) of such revenues in favour of the United States”. The text made it clear that Washington will be given power over reconstruction projects in Ukraine.

This framework is reminiscent of the colonial arrangement that the United States imposed on Iraq, after invading the country in an illegal war of aggression in 2003 and overthrowing its government. The US central bank, the Federal Reserve, administers the money that Iraq receives from selling its crude oil.

Ukraine's Prime Minister Denys Shmyhal stated that his country had agreed to Trump's mineral deal, two days before Zelensky's meeting at the White House. It is unclear if the fight changed the status of the agreement.

The other major revelation in Bessent's FT article was that Zelensky himself had visited Trump Tower in September, just a few weeks before the presidential election. There, in Bessent's words, "Zelenskyy proposed giving the US a stake in Ukraine’s rare earths elements and critical minerals".

This was the biggest irony of all: Zelensky had long showed himself to be an obedient vassal of the United States, and he offered Trump some of Ukraine's natural resources as an incentive to continue arms shipments.

Trump apparently loved the idea, but he wanted total control, not just a little. Now, Trump is demanding to be paid roughly twice the GDP of the country.

The colonial deal that the Trump administration is imposing on Ukraine recalls an infamous quote from the late US imperial strategist Henry Kissinger, who said in the context of Washington's puppet regime in South Vietnam, "It may be dangerous to be America's enemy, but to be America's friend is fatal”.

The people of Ukraine have learned this lesson the hard way.