US has softened its requirements for Ukraine to repay up to $100 billion in aid in negotiations over a mineral deal - Bloomberg
Kyiv • UNN
The Trump administration has lowered its estimate of aid to Ukraine from $300 billion to $100 billion, bringing it closer to the Ukrainian estimate of $90 billion. Negotiations on an economic agreement are ongoing.
The US appears to have softened its requirements for Ukraine to return aid during negotiations on an economic agreement between the two countries, citing people familiar with the matter, Bloomberg reports, writes UNN.
After a round of negotiations in Washington last week, the administration of President Donald Trump lowered its estimate of aid provided by the US to Kyiv since the start of Russia's full-scale invasion from $300 billion to $100 billion.
This, it is stated, brings the figure closer to Ukraine's own estimate of more than $90 billion.
The Trump administration is insisting that Ukraine enter into an agreement to share profits from future Ukrainian investment projects, including mineral resources and infrastructure. Washington sees this as compensation for the tens of billions of dollars in weapons and other assistance provided to the country under former President Joe Biden since Russia began its full-scale invasion more than three years ago, the publication explains.
The partnership agreement, it is reported, will give the US the right of first refusal on profits transferred to a special reconstruction investment fund to be controlled by Washington. Kyiv is seeking better terms and refuses to recognize past US aid as debt.
Technical negotiations have been very productive, a US Treasury Department representative said, adding that they look forward to the speedy completion of negotiations.
Responding to a question about the status of negotiations on Monday, US Treasury Secretary Scott Bessent said that Ukraine came in with a counteroffer on the weekend, and negotiations are still ongoing. "We are very, very close," Bessent told Bloomberg News in Buenos Aires. "It may even be signed as early as this week."
Negotiations between technical teams on Friday and Saturday were constructive, one of the sources said. But the US still approached the agreement as an opportunity to offset costs in Ukraine with profits from the fund, the size of which is still not specified in the latest draft, the representative said.
According to the people, the Trump administration is still reluctant to promise future investments in the fund - a key interest of Kyiv in any such agreement - and is postponing the issue for discussion. Instead, it continues to insist that US spending on Ukraine during the war should be considered Washington's contribution to the fund, they said on condition of anonymity, as the negotiations are private.
According to sources, it has been difficult for Ukrainian negotiators to dissuade their American counterparts from this approach, which underlies some of the most draconian demands from Washington.
At the same time, the publication notes that "Kyiv needs to act carefully," recalling the story with the skirmish in the Oval Office and statements by American representatives.
"The stakes are also high for Kyiv's aspirations to join the European Union, as any preferential treatment for the US may contradict their single market rules," the publication says. Prime Minister Denys Shmyhal last week called his country's goal for the EU "red line #1" for the agreement.
Negotiations last week in Washington were reportedly focused mainly on the details of a potential agreement, and did not include any high-ranking government official. Lawyers will continue to work remotely this week to finalize the project as soon as possible, one of the people said. The law firm Hogan Lovells provides legal advice to Kyiv, the publication writes.
One of Kyiv's tasks at the next online meeting at the end of this week is to provide details on specific projects that could be initiated under the agreement, the source said.
The draft profit-sharing agreement presented by the American team provides for numerous concessions by Kyiv, such as allowing the US to share potential income from Ukrainian investments in profitable assets, including oil, gas, rare earth minerals and seaports, the publication notes.