Ukrainian President Volodymyr Zelensky today confirmed the ‘framework’ of a deal with Donald Trump’s government has been agreed – the full document shows Ukraine has pledged 50% of mineral revenues to a shared fund
Donald Trump talks Ukraine as Macron visits White House
The full details of the economic deal struck between the United States and Ukraine have emerged.
Donald Trump had demanded Ukraine give the US access to its rare earth minerals to compensate for the billions spent helping the war effort during the Joe Biden administration. Ukrainian President Volodymyr Zelensky said today that a “framework” had been agreed between the two countries, which would see Ukraine contribute 50% of its natural resource revenues to a jointly-owned fund.
Zelensky also confirmed no American security guarantees have been agreed yet. A senior Ukrainian official told AFP something could be signed as early as Friday – when Zelensky is set to visit the White House.
The Kyiv Independent obtained the full text of the so-called “framework” from a Ukrainian government official. It sets out 11 points agreed between the two countries.
Reconstruction Investment Fund
The first point states Ukraine and the US “intend to establish a Reconstruction Investment Fund” which will be jointly owned. “The Fund will be jointly managed by representatives of the Government of Ukraine and the Government of the United States of America,” it says, with more details to follow in subsequent documents.
It adds: “Neither Participant will sell, transfer or otherwise dispose of, directly or indirectly, any portion of its interest in the Fund without the prior written consent of the other Participant.”
Collecting and reinvesting revenues
“The Fund will collect and reinvest revenues contributed to the Fund, minus expenses incurred by the Fund,” the document states. The second point also describes how the fund will earn income from the monetisation of Ukrainian Government-owned natural resources.
Ukraine’s 50% contribution
The third point outlines how Ukraine will contribute 50% of all revenues from government-owned natural resources. These assets are defined as “deposits of minerals, hydrocarbons, oil, natural gas, and other extractable materials, and other infrastructure relevant to natural resource assets (such as liquified natural gas terminals and port infrastructure) as agreed by both Participants”.
America’s commitment
The US “will maintain a long-term financial commitment to the development of a stable and economically prosperous Ukraine”, according to the fourth point.
Funds to be invested in Ukraine
The fifth point outlines how the funds will be invested “in projects in Ukraine” and used to “increase the development, processing and monetisation of all public and private Ukrainian assets including, but not limited to, deposits of minerals, hydrocarbons, oil, natural gas, and other extractable materials, infrastructure, ports, and state-owned enterprises”. It also mentions how capital is needed for the “reconstruction of Ukraine”.
Ukraine cannot ‘encumber’ the fund
The full “Fund Agreement” will outline how Ukraine’s obligations to other parties – such as the European Union – cannot “sell, convey, transfer pledge, or otherwise encumber” its contributions to the fund.
‘Commercial in nature’
Point seven states the agreement will outline how it and the activities it describes will be “commercial in nature”.
‘Impossible to weaken’
“The Fund Agreement will pay particular attention to the control mechanisms that make it impossible to weaken, violate or circumvent sanctions and other restrictive measures,” point eight reads.
Both countries writing agreement together
Officials from the US and Ukraine will both “develop” the exact text of the agreement together. These officials will come from the US Department of the Treasury and Ukraine’s Ministry of Finance and Ministry of Economy.
‘Lasting peace’ in Ukraine
Point 10 outlines how agreements between the two countries will be “concrete steps to establish lasting peace” in Ukraine. It also states the US “supports Ukraine’s efforts to obtain security guarantees needed to establish lasting peace”.
‘Binding’ agreements
The final point states: “This Bilateral Agreement is binding and will be implemented by each Participant according to its domestic procedures.” It also says both governments have committed to now negotiate the “Fund Agreement”.