According to The New York Times, as of today, Ukraine and the United States are close to signing an agreement on Ukrainian minerals. What is important to understand is that the new version of the document is much better than the previous ones, but it does not contain any security guarantees for Ukraine.
Points of attention
- While the agreement is more favorable for Ukraine, it falls short of providing the security guarantees against Russian aggression that Kyiv has been seeking from the US.
- The updated agreement highlights a shift towards a more mutually beneficial partnership between Ukraine and the United States, with a focus on economic development and resource monetization.
How are the negotiations between Ukraine and the US progressing?
According to insiders, as of the evening of February 24, negotiations were still ongoing, which means that the terms of the deal could be changed.
The document no longer requires Ukraine to give the US $500 billion in revenue from natural resources.
In addition, Kyiv will not be required to reimburse double the cost of future American aid, which was one of the conditions of the previous version of the agreement.
Despite this, the Trump team has still not offered the security guarantees to deter further Russian aggression that Kyiv has requested.
As we learned, Ukraine is giving up half of its revenues from the future monetization of natural resources.
These proceeds would go to a fund in which the United States would have the maximum percentage of financial interest permitted by U.S. law, but not necessarily all of it. The fund would reinvest the proceeds in Ukraine — although it remains unclear what percentage. It also says the United States will continue to support Ukraine’s long-term economic development.
