US President Donald Trump and Ukrainian President Volodymyr Zelensky had planned to gather in Washington Friday to mark a high-profile conclusion of economic negotiations to make the US a partner in developing Ukraine’s natural resources.
But a remarkable Oval Office scene that saw the two leaders yelling at each other derailed the signing of the economic pact.
The plan had been for a signing before a formal press conference Friday afternoon, but Zelensky left the White House after the heated exchange and Trump posted online that “He can come back when he is ready for Peace.”
Friday’s gathering turned acrimonious after both Vice President JD Vance and Trump called Zelensky “disrespectful” in his remarks and not thankful enough, leading to a war of words as reporters watched on.
Trump at one point told the Ukrainian “you’re gambling with World War 3” and then added “it’s going to be very hard to do business like this” as Zelensky tried to make the case that helping Ukraine is in America’s interest.
“You’re not in good position right now,” Trump said at another point. “You don’t have the cards.”
President Donald Trump and Ukrainian President Volodymyr Zelensky have a heated back and forth in the Oval Office at the White House on February 28. (Andrew Harnik/Getty Images) · Andrew Harnik via Getty Images
It left the economic deal — which is reportedly completed but now unclear if it will ever be signed — clearly in limbo.
It’s a plan that, according to leaked text, would establish a “Reconstruction Investment Fund to deepen the partnership between the United States of America and Ukraine” as part of an effort to have the US take a stake in maintaining “a long-term financial commitment to the development of a stable and economically prosperous Ukraine.”
“This is really important,” Zelensky said in a cooler moment, “for the security of the European continent.”
But exactly how — or perhaps if at this point — the deal will be implemented comes amid crucial questions about the economic effects with security guarantees for Ukraine also still an unsettled question.
“You’re either going to make a deal or we’re out,” Trump said at one point Friday, though it wasn’t clear if he was referring to the economic deal or the larger effort at a peace deal with Russia to end the war.
But, Trump being Trump, the president hadn’t been downplaying his promises this week that the signing would have amounted to a wholesale economic reorganization of the region.
“It’s like a huge economic development project,” he said before Zelensky arrived, “so it’ll be good for both countries.”
“It’s really a win-win because it brings the Ukrainian people and the American business community closer together,” Treasury Secretary Scott Bessent added in a recent Fox Business Network appearance. “It shows the American people that there is upside here for them.”
The pact aimed to give American companies a key role in the development of Ukraine’s mining of minerals like lithium and titanium. Trump has also described the company’s presence in Ukraine as a de facto security guarantee as he has repeatedly ruled out the use of US troops.
And then Ukraine’s government, as the deal outlined, will contribute 50% of future revenues from a wide array of government-owned natural resources — from oil and gas to minerals to infrastructure assets — to the fund with the U.S. providing financial support.
U.S. President Donald Trump and Vice President JD Vance meet with Ukrainian President Volodymyr Zelensky in the Oval Office at the White House Friday. (Photo by Andrew Harnik/Getty Images) · Andrew Harnik via Getty Images
But Friday’s display of acrimony between the two leaders immediately raised questions and was perhaps an indication of the limits of the power of economic diplomacy for Trump.
“It’s going to be a tough deal to make, because the attitudes have to change,” Trump said at another heated moment Friday.
The bad blood between the two leaders stretches back years including a recent flareup that saw Trump call Zelensky a “dictator without elections” (while declining to say the same about Vladimir Putin) and Zelensky shooting back that Trump is living in a Russian “disinformation space.”
This week’s visit marked President Zelensky’s fifth visit to the White House but first since Trump resumed office in January. Zelensky met with Trump in Paris in December and also spoke to Trump by phone earlier this month.
Rare earths are or keen interest to Trump as well as to US companies with many of these minerals underlying modern electronics. But it’s unclear how many will be accessed quickly if a deal is ever signed, with many of Ukraine’s reserves sitting in territory currently held by Russia.
And a recent US Geological Survey report on rare earth elements underlined an overall landscape where Ukraine is a smaller player. China is the clear nation, holding an estimated 44 million tons of rare earth reserves — representing almost half of the world’s mineable supply.
Ukraine isn’t in the top 15.
Russia is fifth with 3.8 million tons in reserve, and Trump has also teased a possible rare earth deal with that country this week.
Ben Werschkul is Washington correspondent for Yahoo Finance.
Every Friday, Yahoo Finance’s Rick Newman and Ben Werschkul bring you a unique look at how U.S. policy and government affects your bottom line on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.
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