7 hours agoWho and what do you get from the US-Ukraine mineral deal?
Periskopi(a year ago)
(a year ago)The new agreement signed between the US and Ukraine opens the door to Washington to gain access to war-torn country's natural resources, while creating an investment mechanism intended to secure long-term support for Kiev. Despite some asymmetric and extreme pressures, over Kiev, Donald Trump is getting what he asked for, but [...]
Despite some asymmetric and extreme pressures, over Kiev, Donald Trump is getting what he asked for, but not in the measure and conditions he proposed. In turn, Ukraine is providing the US with access to its rare deposits without Voldymyr Zelensky's required security commitments, but providing future co-operation with Donald Trump's US, which has been everything but friendly, follows. Periscope.
The BBC analysed the draft agreement, reaching seven main conclusions.
1. No payment from Ukraine for US
President Trump has earlier demanded that Ukraine return $350 billion, which, he claims, Washington has divided for the war. Zelensky flatly rejected that demand.
Now, the agreement does not include any relevant provisions for write-off.
Trump presented the deal as a <x0fit>”, claiming that the US would receive “much more “than the billions spent during the Biden administration.
2. The Biggest American Language to Russia
The deal was accompanied by a rare aggressive rhetoric to Moscow by Trump. The US Treasury Department spoke of a full-scale <x0 loss from Russia” and made it clear that no state or person financing the Kremlin war machine will benefit from the reconstruction of Ukraine.
3. Oil and gas at the table, not just minerals
While the deal primarily concerns the exploitation of Ukraine's mineral resources, it also includes provisions for new oil and gas projects, as well as relevant infrastructure. All natural resources remain under Ukraine's ownership, with the US gaining common access. This is considered a significant withdrawal from Kiev compared to previous plans.
4. No conflict with EU membership aspirations
Kiev was concerned that the deal with the US could jeopardise its EU membership aspirations.
The final version of the agreement explains that there is no conflict, recognises the prospect of membership, and states that the US will confidently negotiate any adjustments due to Ukraine's new European obligations. The agreement also encourages investment and transfer of technology from the EU.
5. Proceeds to be invested in Ukraine for a decade
For the first ten years of operating the investment fund, all profits will be invested exclusively in the Ukrainian economy, without any financial benefits for the US. After ten years, a distribution of profits between partners is forecast. US Treasury Secretary Scott Besant said the message to the American people is that “we have an opportunity to participate and reward for Ukraine's support”.
6. Military Assistance Under Conditions
Washington linked continuing military aid to signing the agreement. Ukrainian Deputy Prime Minister Yulia Svirydenko, who travelled to Washington for the ceremony, said new military reinforcements are planned, including defence systems.
This is a change from Trump's initial stance, which had expressed its intention to limit military support.
7. Lack of binding guarantees, US may withdraw
Despite economic openings, the deal does not include clear security guarantees for Ukraine. Trump's inauguration to offer comparable military commitments to those of his predecessor Beden remains. US support continues to depend largely on the will of the White House, thus maintaining a feeling of uncertainty about Kiev's most important ally. (a2cn)
