New US-Ukraine agreement: what officials on both sides of the Atlantic say about it and whether Ukrainians should be concerned
Kyiv • UNN
A new mineral resources agreement between the US and Ukraine has caused concern among Ukrainian officials. The agreement gives the US control over investments and profits from resources.
A new agreement between the US and Ukraine on critical minerals has sparked a mixed reaction. Officially, it is presented as an opportunity for Kyiv to strengthen its economic partnership with Washington, but unofficial comments from Ukrainian officials and experts indicate significant concern, writes UNN.
What is being said about the new agreement?
As reported by The Washington Post, National Security Council representative James Hewitt stated that "the minerals supply agreement gives Ukraine the opportunity to forge strong economic relations with the United States, which are the foundation of long-term security and peace."
However, judging by the reaction of Ukrainian lawmakers and officials, quick approval is unlikely.
According to one senior official, who wished to remain anonymous, the new draft agreement looks like this: "Ukraine was at war with the US, lost, [was] captured, and now must pay lifelong reparations."
A former Ukrainian official familiar with the negotiations said that the new proposal might only be an initial US negotiating position, but it is "terrible for Ukraine." He also spoke on condition of anonymity due to the sensitivity of the issue.
There is no chance that the document will be signed in this version
The proposed fund council, which will manage all investments, will consist of three US representatives and two Ukrainians, giving the United States a permanent majority and effective control over decision-making. The two Ukrainian council members will have to be vetted by Washington and can be dismissed at any time.
What's the point? They could accept anyone, given that they won't be able to do anything significant. Either they are very brazen, or they are trying to start from a very aggressive position to be able to make some small concessions
Some Americans following the negotiations said they believed the issues could be resolved through further talks.
The agreement, as drafted, is confusing. I see that the Ukrainian government is concerned because this fundamental ambiguity in the structure has not been resolved. Where to get the capital to do this?
Therefore, the Ukrainian government should negotiate. Now is not the time to publicly express your concerns. It's time to negotiate
Drew Horn, a former US official who now heads GreenMet, a Washington consulting firm that advised the Trump administration on critical minerals and mining, said there was a "real economic rationale" for a critical minerals agreement, but negotiations would be difficult.
"I think there's a solution that meets the needs of both the US and Ukraine," he said.
Roman Sheremeta, a Ukrainian economist and founding rector of the American University in Kyiv, wrote on X that the new proposal "effectively turns Ukraine into an American colony."
As reported by EuroNews, according to Svitlana Taran, a political analyst at the European Policy Centre (EPC), by granting American companies a legally enshrined "right of first offer," the agreement is in direct "contradiction" with the bloc's competition and single market rules, which provide for fair and equal access for all economic actors, regardless of nationality.
"There must be open competition for all investors in projects," Taran told Euronews. "In open tenders, EU companies and American companies must participate and compete on equal terms," she added. "I see that there is a conflict of interest here."
Taran believes that Ukraine will continue negotiations until the agreement becomes "acceptable" and concerns about EU membership subside, even if it is unclear what impact these concerns will have on the White House's decision.
"The provisions agreed in previous versions were balanced with Ukrainian interests," the analyst said. "Now they are again unbalanced in favor of the US."
What the new agreement entails
According to documents reviewed by Reuters, Washington is granted priority rights to purchase extracted resources and the return of all money it has provided to Ukraine since 2022, plus interest at a rate of 4% per annum, before Ukraine begins to access the fund's profits.
Zelenskyy has already hinted at this point, stating that Kyiv does not consider past military aid something that now needs to be paid for. However, official Washington offers no security guarantees within the agreement.
Furthermore, the latest draft gives Ukraine no future security guarantees and requires it to contribute all revenues from the use of natural resources managed by state and private enterprises to a joint investment fund.
Recall
On March 28, Ukraine received a new version of the agreement on minerals from the United States.