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 the economic deal to be inked 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 to the United States, leading to a war of words as reporters watched.
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 a 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 Feb. 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 whether the leaders ever return to the deal is now very much up in the air with both the chances of an economic or peace deal clearly lower.
“I don’t know if we can ever do business with Zelensky again,” offered Sen. Lindsey Graham, who has long been one of Ukraine’s strongest GOP defenders, after the faceoff. He calling the Ukranian leader a “bad investment” and suggested he needed to apologize to Trump.
It wasn’t immediately in the offing with Zelensky posting on social media to thank Trump for the visit and his support while adding “Ukraine needs just and lasting peace, and we are working exactly for that.”
In the days leading up to the meeting, Trump being Trump, the president had been playing up his economic deal and saying that the signing would amount 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 companies’ 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, would 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 US providing financial support.
US President Donald Trump and Vice President JD Vance meet with Ukrainian President Volodymyr Zelensky in the Oval Office at the White House Friday. (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 flare-up 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 Zelensky’s fifth visit to the White House but his 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 of keen interest to both Trump and 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 leader, holding an estimated 44 million tons of rare earth reserves — representing almost half of the world’s mineable supply.
Ben Werschkul is Washington correspondent for Yahoo Finance.
Every Friday, Yahoo Finance’sRick Newman and Ben Werschkul bring you a unique look at how US policy and government affect your bottom line on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.
