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Why Trump’s Ukraine War ‘Kellogg Plan’ Collapsed

Posted in Uncategorized, tagged , , , , , , , on April 25, 2025| 2 Comments »

When President Trump ran for office in 2024 he promised to negotiate an end to the war in Ukraine within 100 days of taking office.  The unofficial centerpiece of his plan was the proposals raised publicly by US General Kellogg earlier in 2024. While Trump in 2024 did not officially adopt the Kellogg proposals as his plan to end the war, it is clear in retrospect he unofficially embraced the Kellogg plan. One of his first unofficially appointments before even taking office in January was to task Kellogg to explore responses to his—Kellogg’s— proposals among the interested parties.

It is important to note that the Trump plan to negotiate an end to the war during his first 100 days in office has been the Kellogg Plan, revised somewhat to represent a US political compromise within the Trump administration between the Trump neocons—Rubio, Walz, etc.—and those in the administration who advocate a faster US extrication from the costly and unwinnable war—i.e. Vance, Witkoff, et. al. Thus a ‘Kellogg Plus’ US plan.

At this past week’s EU/UK meeting in London, however, ‘Kellogg Plus’ died and was buried. Put on the table for discussion by the USA as a possible unified west/NATO solution to end the Ukraine war by a  compromise with Russian positions, the Kellogg plan was never even discussed by the Europeans or the Ukrainian delegation sent to London. It was rejected and ‘killed off’ by a unified Europe & Ukraine opposition.  

As others have reported, the Europeans and Ukraine had developed their own set of proposals over the past few weeks in the flurry of their meetings in Europe, the most recent occurring in Paris. London was the meeting in which the Europeans expected the US delegation to discuss the Euro-Ukraine plan which differed substantially from the US ‘Kellogg Plus’ proposals. The US reportedly caught the Europeans by surprise, presented their plan for discussion in lieu of the Europeans’.  The latter then refused to discuss the Kellogg plan and, in return, the US delegation left the meeting.. 

Having had a copy of the US plan just before the London meeting, Zelensky publicly, and in somewhat insulting language, rejected the US plan outright. He followed up after the meeting with another public statement to the media declaring “There is nothing to talk about”.  His European supporters, notably Macron of France and Starmer of UK, quickly joined him and publicly declared the same. It is now clear the US proposals are rejected in their entirety, both by Ukraine and the Europeans

The US had announced its plan was its ‘best and final offer’ to all the parties as the basis for starting negotiations, including Russia, and threatened to exit the negotiations process altogether if not accepted by all.  Whether it does has yet to be determined.

On April 25, 2025, Trump special envoy met with Putin in Moscow to discuss the same Kellogg proposals. It is highly likely Putin will not accept the offer in its entirety either, but may accept some elements and declare it a basis to continue discussions—unlike Zelensky or the Europeans who have rejected it outright and completely. 

Given that total rejection—and regardless of the outcome of the Witkoff-Putin meeting in Moscow, it is clear the first phase of the Trump administration’s attempt to negotiate an end to the Ukraine conflict has come to an abrupt end. 

So what was the Kellogg Plan proposed by the USA that was so abruptly shot down by Zelensky and the Europeans? And what was their alternative proposal that they thought the US would accept as the starting point of negotiations with the Russians—a move by the Europeans to put them back in the negotiations game alongside the Americans as equals, a role so far denied them to their great consternation?

Here are the main elements of the Kellogg Plus American plan:

  • No NATO membership offered to Ukraine nor Ukraine to seek membership, although Ukraine could join the European Union
  • Recognition de jure of Crimea as part of Russia and Lughansk province now fully occupied by Russia
  • Ceasefire implementation details to be worked out by Russia & Ukraine, without Europe or US participation
  • Recognition de facto the other three east Ukraine regions (Donetsk, Zaporozhie, Kherson) now occupied by Russian forces along the current combat line
  • Lifting of US sanctions since 2014 on Russia, leaving Europe sanctions to Europe to decide
  • Europe could offer Ukraine security guarantees if it wanted but the USA would not
  • US and Russia would continue to explore joint deals on energy and industry
  • The US would operate the Zaporozhie nuclear power plant and distribute its resources to both Ukraine and Russia
  • Russia also gives up its control of the dam on the Dnipr, its territory in Kherson where the nuclear power plant is located, its occupation of far western ‘spit’ of Kherson on the river, and the area in the Kharkov province Russia also now occupies
  • US & Ukraine conclude a minerals deal, with participation by Europe as well
  • The Plan said nothing about the size of Ukraine’s army after the war’s end

In negotiations of agreements, sometimes what’s left out intentionally is as important as what’s included. Here’s some key omissions in the US plan:

  • No reference to the size of the Ukrainian military as part of a peace deal, or whether Ukraine could build up its forces while ceasefire and negotiations continued
  • No reference to whether NATO troops were to participate in any peacekeeping operations in Ukraine after the war
  • No mention of whether or how Ukraine might be compensated and rebuilt, by whom, or whether Russia’s $260 billion assets in European banks would be used

The Europeans were shocked, reportedly, by the provisions of the Kellogg Plus plan. They had expected the US to attend London to discuss the plan they had alternatively hammered out in the preceding weeks with the assumed approval of Ukraine.  That alternative plan was fundamentally different from the USA’s. In fact, it is better described not as a plan to reach some kind of a compromise settlement to the conflict, but a plan that amounted to a capitulation of Russia in the conflict.

The Europeans proposed something historically similar to the France-Britain 1918 armistice agreement on Germany that ended world war I.  That armistice was a ceasefire after which the victors—France and Britain—imposed impossible terms on Germany, which were eventually forced on Germany and which, in the end historically, led to the continuation of the world war in 1939. The 1918 negotiations was an agreement forced by victors on the defeated. The problem in Ukraine today, is that the Russians are clearing winning militarily and it is the Ukrainians and Europeans who are likely the defeated before this year’s end on the battlefield.

Here’s the elements of the Europeans-Ukraine 2025 ‘Armistice Plan’, which they had hoped, were the USA to accept as basis for negotiations, would put them—the Europeans—back on an equal footing in negotiations with the USA that the latter has thus far denied them since discussions between the US and Russia were opened in Riyadh and Jeddah, Saudi Arabia, in March.

The Main Elements of the European Armistice Plan:

  • Russia & Ukraine accept an unconditional ceasefire. Details of the implementation of the ceasefire subsequently negotiate by all four parties together: Russia, Ukraine, Europe and USA
  • Russia required to return all prisoners, troops and children allegedly kidnapped but no mention of Ukraine similar release of prisoners, etc.
  • Security Guarantees to Ukraine provided by US and Europe, along lines of NATO article 5 language; Ukraine may join NATO at a later date
  • No limits or restrictions on Ukraine’s size of military. Ukraine allowed to rebuild army and weapons during ceasefire negotiations
  • Europe and other States may send troops to Ukraine as part of peacekeeping force
  • No reference made to Russia right to Crimea or other occupied territories
  • Ukraine to control the Zaporozhie nuclear power plant, with US only assisting. Also Ukraine control Dnipr river and its Khakovka dam
  • Russian assets in European banks remain frozen until Ukraine compensation for damages is determined by negotiations
  • Sanctions on Russia remain in place. Any relief of sanctions reinstated if Russia breaches agreement in any way

It should be noted this European proposal is not the plan Ukraine has been proposing the last two and a half years. Ukraine/Zelensky’s position to end the war hasn’t changed since late 2022.

Ukraine’s Terms for Ending the War:

Almost three years to the day this April, following Russia’s initial invasion in February 2022 and territorial gains across Ukraine, Russia and Ukraine representatives met in Istanbul, Turkey and worked out details of terms tentatively to end the conflict. The terms of Istanbul I, as it is called, included Ukraine agreeing not to join NATO, Crimea remaining in Russia but the other four provinces of east Ukraine remaining in Ukraine providing assurances were given its almost total Russian population be allowed to practice its Russian Orthodox religion, speak Russian, and continue other cultural practices—all of which were being denied by the Kiev regime at the time in the hands of ultra-nationalist, proto fascist forces intent on denying the same to its eastern Russian population. The shelling of cities in the east by Ukraine forces also had to stop.

Ukraine tentatively agreed to Istanbul I, took the terms back to Zelensky in Kiev, who reportedly was considering signing them—until then UK prime minister, Boris Johnson, flew into Kiev and convinced Zelensky that unlimited NATO funds and weaponry would be forthcoming, that Russia would collapse politically and economically if Ukraine resisted militarily and the war with Russia should therefore continue.  Zelensky ultimately agreed. Istanbul was abandoned and, after the initial Ukrainian tactical victories in the summer of 2022, Zelensky and Ukraine adopted the following hard line positions for negotiations that Ukraine formally retains to this day:

  • Russia should immediately exit all Ukraine territories, including Crimea
  • After exit, Ukraine will commence negotiations with Russia
  • Negotiation topics to focus on reparations paid to Ukraine by Russia
  • War crime tribunals of Russia leaders in Europe to follow
  • Ukraine never to cede control of the Zaporozhie nuclear plant to anyone
  • It will never agree to any limits or reductions of its military forces
  • Europe must agree to let Ukraine into NATO or else provide it Article 5 NATO equivalent security guarantees

Russia’s Terms for Ending the War

As Ukraine’s position evolved in the course of the first year of the war, so too did Russia’s.  After its initial offer in Istanbul in April 2022, and its retreat from areas around Kiev and in the south in Kherson Russian demands stiffened as well. That fall 2022, as Ukraine demands total capitulation by Russian forces, Putin established a new Russian position:

At the center of that was that now after referenda were conducted in the four regions of East Ukraine showing over-whelming voting to join Russia, the four provinces were now legally part of Russia and were non-negotiable.

Other Russian demands were Ukraine must not join NATO, must become neutral between Europe and Russia, and its government must be purged of fascist elements to ensure the same.

In early 2024 Putin gave an interview with US journalist, Tucker Carlson. In it he made an interesting remark which has largely been ignored by western media and which may yet be raised as part of any ultimate negotiations.  In it he described the far west Ukraine as not really part of the Slavic homeland of Russia, Ukraine and Belarus.  He noted that territory was formerly Poland and Romania and was given by Stalin to Ukraine at the end of World War II. It was an historic hotbed of fascism and the region had strongly supported the Nazis in the world war, often doing their dirty work on the local resistance and the jews.  Putin then suggested if the west wanted this region, he didn’t have any great opposition to it, if they were that foolish to accept its inherent pro fascist elements.

Later in June 2024 Putin established Russia’s most recent position for a negotiated end of the conflict which has remained to this day. These terms include:

  • No NATO membership for Ukraine
  • Political neutrality by Ukraine
  • Ukraine government remove neo-nazi politicians from its government
  • Recognize that Crimea and the four provinces are now legally part of Russia
  • To ensure Ukraine is no threat to Russia, it must reduce its military force to around 80,000

Why European Obstinacy Toward Continuing the War?

Many observers in America and elsewhere in the world have been perplexed about why the European leadership—especially those of the larger countries Britain, France and now Germany—have been so consistently in favor of continuing the war?  They ask questions like: don’t they (European leaders) see that the war cannot be won? That Ukraine is losing? That it may mean an irrevocable split between the USA and Europe and break up of NATO itself? Can Europe actually go it alone, providing the massive funding to Ukraine and weapons it clearly does not have the economic base to produce by itself?

Here’s some possible explanations for the European obstinate support for Zelensky, Ukraine and for continuing the war:

  1. European leaders are politically committed in terms of their personal careers to the war, both at national and Euro-wide institutional (EU Commission, EU Council, etc.) levels. Should the war end on Russian terms, it will be perceived as a personal defeat for them with repercussions for their personal careers
  2. War is often a convenient diversion by politicians from problems at home in their own constituencies. It’s not the first time in history politicians start and continue wars to stay in office
  3. Some European/NATO have a visceral bias against and hate for anything Russian. This is especially true of the Baltics states’ leaders and also to some extent for Poland, Finland, and even for Britain
  4. The War continuance serves to keep NATO from falling apart (while it also has the opposite effect). So long as the war continues, perhaps US and Trump can not leave NATO so quickly or completely
  5. The War is clearly pushing Europe toward building its own defense industry and independent military force. For decades it’s been overly dependent on the US for weapons provision and massive funding of NATO operations in Europe which has meant significant US dollars inflow to Europe.  Europe leaders now talk of spending trillions of Euros on defense, important for boosting an otherwise slowing stagnating real economy for almost two decades now. Without the war—and media manufactured threat of an eventual Russia invasion of Europe should it win in Ukraine—it is impossible for Europe to spend trillions Euros planned for a new defense industry.
  6. One must assume some European leaders—especially those less competent in the umbrella EU Commission, EU Council, etc—actually believe Russia will invade Europe after Ukraine with a Russian army barely a million when it took 15 million Russians to take east Europe and Germany during world war II at the cost of 20 million killed.
  7. Some European generals and no doubt politicians have stated and believe that Russia will lose the war if NATO just stays committed and fights for another year. This is the original argument that dominated NATO thinking back in 2022: that Russia’s economy can sustain a war for long and opposition to Putin will quickly result in his overthrow.  How that view succeeds today after three years of evidence to the contrary is difficult to understand.

Ukraine’s and Zelensky’s obstinacy and existential commitment to continue the war is more understandable and rational, notwithstanding its inevitable failure.

Zelensky must continue to war in order to continue martial law and, in turn, remain in office given that his authority as president expired in May 2024 and he’s no longer actually the president.  Should the war end elections in Ukraine will be held and he will almost certainly be forced out of his current role.

Without the protection of his office he then becomes personally vulnerable from several directions. He’ll be blamed by the radical nationalists for losing Ukraine territory and the death of hundreds of thousands Ukrainians will have been in vain. They’ll come after him. The Russian secret services may do the same indirectly. Or perhaps some everyday Russian, or Ukrainian, citizen who’ll blame him for their family losses. He won’t have the level of personal protection he enjoyed from the Americans, and now the British, will in office.

The War keeps the radical nationalists on his side so long as the fighting continues and he remains obstinate about any negotiations with the prospect of even the slightest compromise.

There’s also the question of a wide spectrum of Ukraine society and political-social forces that have grown dependent on the flow of money from the west. Many politicians and political interests have been sharing in that western funds injection. Per Zelensky himself, Ukraine must spend $8 billion a month just as government workers wages and pensions. Ukraine’s broken economy cannot generate that. Then there are the hordes of shadowy arms traders making money off the flow of funds and weapons. And Ukraine companies and their western investors as well.

Trump’s Next Moves?

There’s been much conjecture in the US media, and talk by Trump administration team assigned to the war, that should the parties not accept the Trump Kellogg Plus plan then the US will simply walk away from the negotiations.  That’s not likely. There’s many ways to continue negotiations. In the case of Russia and US that’s simple as part of the future meetings planned to discuss restoring diplomatic relations and defining economic deals and cooperation.

Some clarity where Trump’s going next may emerge from the WItkoff-Putin meeting now underway.  Trump needs Putin to agree to something to keep the ball rolling and keep at bay US critics who’ll say it’s futile to negotiate with Putin and Russia. On the other hand, Putin cannot embrace too much a plan that clearly is designed to get Russia to de facto freeze the war in place or even slow Russian offensives. 

The war cannot be concluded by negotiations designed to end the fighting; it can only be concluded on the battlefield that leads to negotiations that then conclude the conflict.

The most likely outcome of the war is a military one.  Russia will have to take more territory in order to convince Ukraine and Europe allies that if it doesn’t agree to Russia’s fundamental demands Ukraine may lose even more territory. Russia will need to succeed in major new offensives in the north and south to create that realization and scenario.

The question is whether Russia’s Special Military Operation, SMO, is sufficiently large enough to do so. 800,000 men and voluntary recruits may not prove sufficient. It should not be forgotten that Ukraine was ‘conquered’ in 1944-45 by a force of more than three million in arms. Modern technology perhaps does not require that many but nonetheless requires more than 800,000 given the scope of the front lines and the fact Russia, while it has an advantage of 2 to 1 in combat manpower, that ratio is probably not enough for a complete military victory.

However, one more proviso is relevant. It’s not impossible that Ukraine’s army collapses later this summer, especially if the USA and Trump pull out of weapons deliveries and discontinue surveillance and targeting support for Ukraine forces. But that depends on Trump’s next after next move.

Returning with a token concession from the Witkoff-Putin meeting is not sufficient. To end the war, as Trump says he wants to do, will require a hard break of US involvement militarily, logistically and financially—and soon.  He will have to ‘bite the bullet’ no later than June and cut Ukraine loose. And perhaps ‘stick a stake’ in the political heart of those Europeans who have been playing the USA to provide them their military toys and games for almost eighty years now.

Dr. Jack Rasmus,

April 25, 2025

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The Real Trump-Zelensky Minerals Deal

Posted in Uncategorized, tagged , , , , , on February 26, 2025| 1 Comment »

After weeks of on again off again, US mainstream media headlines today, February 26, 2025 announce that Trump and Ukraine’s president Zelensky—after weeks of ‘tit for tat’ mutual accusations–have reportedly reached a deal for Ukraine to pay the US from Ukraine’s minerals wealth.

The deal details remain opaque, however. It’s not clear if the amount to be repaid is still $500 billion. Nor is it clear whether the agreement will repay past US aid to Ukraine or be used to help rebuild Ukraine after the war’s end.

Furthermore, the mainstream media provides no details as to ‘who else benefits’ from the deal. Will the money go back into the US Treasury, into a Ukraine post war rebuilding…or to benefit private interests? 

Typical of US mainstream media’s reporting of events is today’s Wall St. Journal headline announcing a pact was reached. The only details reported, however, is that Ukraine “would pay some proceeds from future mineral resource development into a fund” and that “existing oil and gas production would be exempt from the deal”.  More revealing is the reference that “the size of the U.S.’s stake in the fund and joint ownership deals will be hashed out in future agreements.”

In short, it all looks like a PR compromise between Trump and Zelensky to lower the accusations and public feuding between them that had been rising in intensity in recent weeks. Both Trump and Zelensky make token concessions to make it appear as if a deal exists and leave the critical details unclear. 

Both sides thus now kicked down the road, to be flushed out in detail only after war’s end. Most likely that end will occur sometime in the second half of 2025—at least with regard to US active participation in the war.  For there are signs the US/NATO proxy war with Russia in Ukraine may soon end but the conflict morph into a Europe/NATO proxy war.

Zelensky’s Original Offer

The idea of money from Ukraine’s mineral wealth in exchange for US aid is a Zelensky proposal raised last fall when the Biden administration was still in power and it was clear the US Congress would not pass further legislation after its $61 billion aid package enacted early last summer. Raising the idea of minerals wealth in exchange for more aid last fall was thus a Zelensky effort to restart the flow of US funds to Ukraine.

Embedded in the running dispute in recent weeks by Trump and Zelensky over whether, how much and in what form Ukraine would share its mineral wealth with the US is their parallel running disagreement over how much aid the US has actually given Ukraine the past three years.

Trump has said the Biden administration gave Ukraine $350 billion with no strings attached, while Europe provided only $150 billion in the form of loans to be repaid. Thus Trump’s reference to the $500 billion is in effect a redefinition of Biden’s ‘no strings attached’ aid, converting Biden’s grant into a loan to be repaid, much like the Europeans’ terms of aid. Presumably the $500 billion would cover repayment of the $350 billion given Ukraine thus far by the US, with perhaps $150 billion more left over for rebuilding Ukraine post war.

Zelensky responded Ukraine only actually received $70 billion in US aid since 2022 and admitted he could not account for another $100 billion. He further emphasized US aid was a grant not a loan and Ukraine would not repay any of it.  Zelensky thus clarifies he means minerals for more future weapons and funding from US not as repayment for past US aid. He also has clarified the form of wealth transfer will not assume a 50% US sharing nor US right to purchase 50% of the Ukraine assets to ensure 50% sharing. The mechanism—as well as the amount–is left to future details.

Also in dispute is what any of the wealth sharing funds would be used for. Trump has been unclear whether the sharing would reimburse US for past aid as well as to help rebuild Ukraine after a settlement. Zelensky’s position is all the sharing would be redirected back into rebuilding Ukraine.

In short, the agreement announced today amounts to minimal tokenism by both parties. Again suggesting it’s for media consumption to appear as if there’s a deal of substance and to provide a means for both Trump and Zelensky to lower the heat of mutual accusations and incriminations.

Trump’s Counter Offer

Trump has been saying all along that since Zelensky proposed the $500 billion figure in principle last fall he first raised the idea inviting negotiations. It was Zelensky’s number. Trump has explained he has only agreed to Zelensky’s number and countered with some details as to how the $500 billion might be repaid: specifically he proposed the US be given a 50% claim on all proceeds from the sale of all Ukraine minerals plus the US right to acquire Ukrainian minerals companies to ensure payment.

Embedded in their running dispute the past few weeks is differences over how much the US has actually given in aid to Ukraine since the war began in 2022. The Wall St. Journal article today—and the US mainstream media in general the past two weeks–largely agrees with Zelensky’s claim Ukraine received only “$70 billion in military aid.”  However, that estimate conveniently ignores that the Biden administration passed legislation last summer that alone provided $61 billion in military aid, to which has been added a still undetermined further amount by the Biden administration in the weeks after the US November election.  Moreover the $70 billion is an estimate for military aid not other forms of aid the US has provided the past three years.

The true amount of US aid to Ukraine—military as well as to pay the salaries of the Ukraine government the past three years—is undoubtedly closer to the $350 billion than the $70 billion. Zelensky himself has previously stated the cost of paying Ukraine government salaries and employee pensions is $8 billion a month. That total for three years is close to $300 billion. Much of US aid to Ukraine since February 2022 has therefore been to finance the Ukraine government, not just to provide military aid. In total it’s likely between $300 and $400 billion.

Apart from the uncertainty as to what actually is the dollar amount of the just announced deal, the agreement reported by the Wall St. Journal today includes no guarantee of US security for Ukraine. This precondition of US security in exchange for sharing Ukraine’s mineral wealth has consistently been a major sticking point in Trump-Zelensky negotiations all along.  Zelensky’s position has been a guarantee of US security is always a quid pro quo for any wealth sharing.

In short, the agreement reported today is a PR deal primarily for public media consumption. Zelensky has made a token concession in principle of only “some proceeds” (not $500 billion) and that would not include revenues from “existing oil and gas production”.  In return Trump has made a token concession of ‘some amount’ of mineral wealth sharing according to some arrangement, both of which are to be determined in some ‘future agreement’.

All the exchanges and announcements associated with the mineral wealth exchange for US support in some form is an exercise in ‘putting the cart before the horse’ as the saying goes. A deal on wealth sharing for whatever reason cannot predate a negotiated settlement to the war itself. It can only be a part of a settlement that is still fundamentally elusive. Especially if the US ends its proxy war with Russia and cuts a separate deal with Russia, and Europe picks up the tab of the cost of continuing the war and providing weapons to Ukraine

Who Benefits?

The US mainstream media’s narrative is the $500 billion (or whatever the eventual amount) is about funds to rebuild Ukraine after the war’s end.  But is that an adequate explanation for ‘who benefits’ from the funds from the minerals production and sale?  What is the deal really about? Who are the parties that will eventually benefit from whatever wealth sharing results?

What’s really behind the $500 billion minerals deal? 

The Europeans clearly out negotiated Biden by providing Ukraine with $150 billion in loans not grants, to be repaid somehow at a later date. They are also sitting on $260 billion in Russian frozen assets in EU banks. And they just announced another $20 billion ‘bridge loan’ to Ukraine to enable it to continue the war into the summer. They’ve been suggesting, and it is obvious they plan, to use the $260 billion frozen assets to cover the cost of rebuilding Ukraine.

 And this is the key point: the rebuilding will involve projects carried out by European companies and funded by European banks and investors, to be paid from the $260 billion. Thus the EU private sector will ultimately benefit the most from the rebuilding.

Biden left the US without such a solution by giving the money away to Ukraine with ‘no strings attached’.  Thus Trump creating a $500 billion fund should be understood as analog to Europe’s $260 billion.  While some of the $500 billion (or part thereof) will no doubt be to repay the US Treasury, is likely most will be allocated to compensate US companies, now deeply entrenched in Ukraine since 2015 for rebuilding projects conducted by US companies and financed by US banks.  US companies’ exit costs and future losses may also be reimbursed from the funds

Any who doubt how deeply entrenched US business interests are today in Ukraine should just refer to the local business chambers of commerce throughout the major cities of Ukraine. They will find hundreds of subsidiaries of US corporations, let alone Ukraine businesses now indirectly owned by western banks and investors. The penetration of US capital into Ukraine has been going on for more than a decade, since 2014 when US neocon, Victoria Nuland, was made ‘economic czar’ for Ukraine by its parliament that year. A flood of US capital and companies followed. Trump’s $500 billion fund is destined to address their interests as well as assist & subsidize new US capital in the rebuilding of Ukraine.

In other words, all the debate and talk in Europe about what to do with Russia’s $260 billion frozen assets and the Trump $500 billion proposal to get Ukraine to share its mineral wealth is really about how the spoils of war get distributed and to whose interests—i.e. Europe’s, the USA’s and their respective business interests.

Moreover, Trump plans to extend the wealth transfer from those areas of Ukraine now part of Russia in the east. Zelensky’s Ukraine cannot ensure any wealth sharing from those regions lost to Russia. But Trump striking a deal with Russia for US companies to participate in the reconstruction in east Ukraine’s four provinces now part of Russia is a further phase of the deal to exploit the reconstruction of Ukraine. Less directly as well, any agreements with Russia over terms of trade with Russia in general.  It’s not coincidental that Putin has publicly suggested the door would once again open to US capital investment in Russia after a deal.

There’s no doubt both Trump’s $500 billion and Europe’s $260 billion will eventually be part of any negotiated settlement to the war. Neither deal can be finalized until it is clear there is some final settlement, since how much dollars and Euros, in what form of investment, and for whose benefit cannot be decided until the war on the ground is over. And that’s yet to be determined although the endgame in military terms is drawing near.

However, military force is just an extension of political strategies and interests and the latter are still in flux. But a sure sign the political endgame is also approaching is when the economic interests behind the political forces begin to be discussed and clarified. And that’s what the minerals sharing deal is about, as well as the maneuvering of US and Europeans with regard to negotiations. 

The wolves are beginning to devour the carcass and are snapping and growling at each other to determine who gets to eat first and how much.

By the minerals deal and by economic negotiations with Russia underway, the USA plans to eat its full share one way or another. The Europeans can have a bite as well, but must wait their turn. As the ‘alpha’  wolf, the US will take the biggest bite out of Ukraine and if Europe doesn’t like it they can go find another prey.

Dr. Jack Rasmus

February 26, 2025

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