The U.S. government has presented Ukraine with a proposal requiring the country to allocate a significant portion of its future natural resource revenues to repay American aid received during the ongoing conflict with Russia. This proposal, part of a broader minerals agreement, has raised concerns among Ukrainian officials regarding national sovereignty and economic independence.
Key Provisions of the U.S. Proposal
• Revenue Allocation: Ukraine would contribute 50% of its future revenues from natural resources, including minerals, oil, and gas, to a joint investment fund controlled by the U.S.
• Debt Repayment Terms: All profits from this fund would be directed to the U.S. until the total aid provided to Ukraine is repaid, along with an annual interest rate of 4%.
• Investment Restrictions: In the first year of the agreement, Ukraine would be prohibited from offering investment projects to third countries on terms more favorable than those offered to the U.S.
• Control Over Resource Projects: The U.S. would have the right of first refusal on new Ukrainian resource projects and could veto sales of Ukrainian resources to other nations.
• Post-Repayment Investments: After the debt is repaid, an unspecified portion of the fund’s profits would be reinvested into Ukrainian natural resource projects.
Ukrainian Response and Concerns
Ukrainian officials have expressed apprehension over the proposal, particularly the lack of security guarantees and the potential loss of control over national resources. Deputy Prime Minister Yuliia Svyrydenko emphasized the need for a balanced agreement that aligns with Ukraine’s strategic interests and does not compromise its sovereignty.
President Volodymyr Zelenskyy has stated that while Ukraine is open to partnerships that aid in reconstruction and economic development, any agreement must not be perceived as a repayment of aid or undermine Ukraine’s aspirations for European integration.
Ongoing Negotiations
A Ukrainian delegation, including representatives from the Ministries of Economy, Foreign Affairs, Justice, and Finance, is set to engage in further negotiations with U.S. officials in Washington. The discussions aim to reach a mutually acceptable agreement that supports Ukraine’s post-war recovery while respecting its national interests.
