Scoop: U.S. and Ukraine discuss "improved" minerals deal after Trump raged at Zelensky

The intrigue: Sources on both sides now say a deal is looking more likely.

• A source with knowledge said several of Zelensky's aides have encouraged him to sign the updated proposal to avoid a further clash with Trump and allow the U.S. president to justify U.S. support for Ukraine.
• "There was significant improvement in the recent draft and it is in conformity with Ukrainian law," the source said.
• National security adviser Mike Waltz told reporters Thursday that Zelensky needed to "come back to the table" on the minerals issue.
• "This is a negotiation. And in a negotiation, you negotiate. Ukraine wants to negotiate minerals, so we're talking about it," a White House official said.

The big picture: Ukraine sits on significant reserves of rare earth minerals critical to the world's most cutting-edge technologies. In total, the value of the minerals could run into the trillions of dollars.

• The minerals agreement is not explicitly linked to any settlement to end the war in Ukraine, but the two issues have collided this week in dramatic fashion.

Catch up quick: The idea for an economic partnership between Ukraine and the U.S. was brought up originally last September by Zelensky during a meeting with Trump in New York.

• Last week, three hours before Secretary of Treasury Scott Bessent arrived for a meeting with Zelensky in Kyiv, the U.S. ambassador delivered a draft agreement for cooperation on the mining of minerals.
• The draft agreement said 50% of the resulting revenues would be given to the U.S., that the agreement would be under the jurisdiction of a New York court, and the deal would override any of Ukraine's other trade agreements, according to two sources who read the original draft.
• During their meeting, Bessent told Zelensky that Trump insisted he sign it right away. Zelensky told Bessent he couldn't sign an agreement he had only just received.

Between the lines: The Ukrainians were also disappointed that the U.S. draft didn't include any security guarantees for Ukraine and that it was being pushed on them at a time when Ukraine was also being excluded from U.S.-Russia talks about Ukraine's future.

• But they were also surprised when Trump began to attack Zelensky publicly, including over the minerals proposal.

What they're saying: "Scott Bessent actually went there and was treated rather rudely because essentially they told him 'no,'" Trump told reporters on Wednesday. "He came back empty. They wouldn't sign the document."

• Several days later, when Zelensky met Vice President Vance and Secretary of State Marco Rubio in Munich, they presented him with a less binding draft memorandum of understanding about the mining of minerals, a Ukrainian official said.
• Zelensky told Vance and Rubio he couldn't sign because such an agreement must be approved by parliament, per the Ukrainian constitution.
• "That was news to us that Zelensky's team never told us before that meeting," a Trump administration official said. "It didn't seem like it was in good faith."
• The White House and Zelensky's office did not respond to requests for comment.

Behind the scenes: Zelensky's position on the minerals deal was one of the issues that frustrated Trump and other senior U.S. officials and exacerbated the existing tensions over the U.S.-Russia meeting in Saudi Arabia, U.S. and Ukrainian officials say.

• "There is a lot of frustration. Vice President Vance was very frustrated leaving the Munich Security Conference. That is on top of the president [being frustrated]," Waltz told Fox News on Thursday.
• "We proposed to have the U.S. co-invest with Ukraine in its economy and natural resources and become a partner in Ukraine's future. This is the best security guarantee they can hope for. More than another pallet of ammunition."
• "Why are we getting pushback and badmouthing in the press? It's unacceptable. They need to tone it down. Take a hard look and sign this deal," Waltz said.

State of play: Trump said on Wednesday night that he was trying to "resurrect" the minerals deal.

• A Ukrainian official, a U.S. official and two sources with knowledge told Axios that in recent days negotiations continued, with the U.S. presenting Ukraine with an updated version that addressed some of Zelensky's concerns.
• Another source said some articles that had concerned the Ukrainians — including that the deal was under the jurisdiction of the New York court — were removed.

The latest: Zelensky met on Thursday in Kyiv with U.S. envoy Keith Kellogg and discussed the minerals agreement, the battlefield situation, the return of prisoners of war and security guarantees for Ukraine as part of a future peace agreement.

• After the meeting, Zelensky issued a statement thanking the U.S. for its assistance and bipartisan support.
• "Ukraine is ready for a strong, effective investment and security agreement with the President of the United States. We have proposed the fastest and most constructive way to achieve results. Our team is ready to work 24/7," he said.
• Waltz claimed Kellogg had helped Zelensky realize the war needed to end.