Ukraine is considering a revised American proposal for access to its natural resources, which would require the country to relinquish half of its revenues from minerals, gas, oil, ports, and infrastructure. This proposal is seen as necessary repayment for the billions of dollars the United States has provided to Ukraine for its war against Russia. The deal could potentially strip Ukraine of funds currently invested in its military and defense industry, which could hinder the country’s ability to rebuild once the conflict is over. The revised proposal also includes provisions for reinvesting a portion of the revenue into Ukraine’s postwar reconstruction.
President Trump has been applying intense pressure on Ukraine to agree to the terms outlined in the deal. The proposed agreement, which has gone through several revisions, does not include the security guarantees that Ukrainian President Volodymyr Zelensky had been seeking. The United States is demanding that Ukraine contribute to a fund until it reaches $500 billion, a sum more than twice Ukraine’s pre-war economic output. This figure was not included in previous versions of the deal, causing uncertainty about its purpose – whether it is meant as repayment for past aid or future support.
The new proposal also includes provisions for territories in Ukraine currently occupied by Russia. If these areas are liberated, 66 percent of the resource revenues contributed to the fund would come from these territories. This is significant as Russia currently occupies about a fifth of Ukraine’s territory, including parts of the resource-rich Donbas region. While there was hope that the deal could be finalized on Saturday, it remains uncertain given the past opposition from President Zelensky to the proposed terms.
The deteriorating relationship between President Zelensky and President Trump has contributed to the acrimony surrounding the negotiations for access to Ukraine’s resources. The interactions between the two leaders became contentious, with President Trump making personal attacks against President Zelensky and spreading false information about Ukraine’s role in the conflict with Russia. Despite the strained relations, the United States has allocated significant funds for aid to Ukraine and believes that an economic partnership between the two countries would be beneficial for Ukraine.
One of the few changes in the revised proposal that may satisfy Ukraine is the removal of a clause that would place the deal under the jurisdiction of a New York court. This clause raised concerns among Ukrainian officials as it could potentially weaken Ukraine’s legal standing in the event of a dispute. The United States has emphasized that American economic interests in Ukraine would serve as a security guarantee for the country. Cabinet members have urged President Zelensky to sign the deal, with the U.S. national security adviser stating that it would be in Ukraine’s best interest to enter into an economic partnership with the United States.
