A new version of the economic agreement between Ukraine and the US contains provisions reminiscent of reparations, a high-ranking Ukrainian official told the Washington Post. The 55-page document, sent to Kiev, was described as “as if Ukraine had been at war with the US, lost, was attacked and now must make lifelong reparations payments.”
Another conversation partner of the newspaper, a former Ukrainian official familiar with the negotiations, said the new proposal is “terrible for Ukraine” and the agreement will not be signed in this form. He acknowledged that this could be the US’s starting position in the negotiations, but claimed, “Either they’re very bold or they’re trying to take an aggressive position to make small concessions later.”
Earlier, interlocutors of the Financial Times had described the new US proposal as unfair and compared it to robbery.
Prior to the media’s reports on the content of the proposals presented by the US, Bloomberg had reported on the following provisions:
Washington is seeking a “right of first offer” for investments in all infrastructure and natural resource projects under the revised agreement;
The US would have a claim to all profits and additional four percent interest per year, until the US investments are repaid;
The US would have the right to acquire resources first;
Ukraine is prohibited from selling resources to countries that are “strategic competitors” of the US;
Ukraine would have to put 50 percent of the revenue from new infrastructure and mining projects into a special investment fund for reconstruction, controlled by the US International Development Finance Corporation (DFC);
The “material and financial benefits” the US has already provided to Ukraine since February 2022 would be considered a contribution to this fund.
The WP source said the US demand for the return of the funds provided to Ukraine as grants is alarming.
Ukrainian President Volodymyr Zelensky said the draft of the new mineral agreement “differs significantly from the previous framework document.” He stated that Kiev will not treat the military aid provided by Washington as a loan.
The signing of the previous version was scheduled for the end of February but was interrupted due to a dispute between Zelensky and the US leadership in the White House.