KYIV, Ukraine — In a recent development, the United States and Ukraine have forged a preliminary economic arrangement to solidify America’s long-term support in the reconstruction of Ukraine. This arrangement notably includes the creation of a jointly managed investment fund to aid the recovery of Ukraine’s war-struck economy. However, discussions regarding the security assurances sought by Ukraine remain to be addressed in subsequent dialogues.
The finalized agreement outlines the establishment of the investment fund that will operate jointly, financing Ukraine’s reconstruction efforts. It follows a fortnight of negotiations between Kyiv and Washington, primarily revolving around the U.S. access to Ukraine’s natural resources. Ukrainian President Volodymyr Zelenskyy has been firm in his position that any deal on resource access must be complemented by specific security guarantees for Ukraine.
U.S. President Donald Trump is expected to meet with President Zelenskyy at the White House to officially sign this pact, which is anticipated to foster a closer relationship between the two nations for the foreseeable future.
**Security Concerns Await Further Discussion**
Despite the pact referring to the critical aspect of Ukraine’s security, it stipulates that these matters will be settled in a separate agreement currently awaiting discussions between the leaders of both countries. The U.S. has expressed its support for Ukraine’s quest for security guarantees to ensure lasting peace and has committed to the long-term economic stability of Ukraine. The agreement underscores a shared desire for investment in a sovereign and secure Ukraine.
Zelenskyy, during a press meeting in Kyiv, asserted Ukraine’s need for clarity on the U.S.’s military support stance. His upcoming meeting with President Trump is expected to touch upon this wide-ranging issue. While the economic pact might tie into future security arrangements, Zelenskyy is seeking a broader understanding of Ukraine’s future within this framework.
According to a senior Ukrainian official privy to these matters, negotiations surrounding security considerations will proceed independently of the fund’s establishment. Despite this separation, Kyiv perceives the fund itself as a bolster to Ukraine’s security, given the mutual need to protect both U.S. and Ukrainian investments amidst ongoing Russian hostilities.
**Functioning of the Agreement**
The accord details that Ukraine will allocate 50% of future revenues from national assets—such as minerals, oil, and gas—to the investment fund. This revenue sharing is designed to motivate the U.S. to advocate a fair resolution to the ongoing conflict. This strategic move was first proposed by Zelenskyy, aiming to fortify Ukraine’s negotiation standing with Moscow.
Additionally, Ukraine agrees to contribute half of its revenue from infrastructure pertinent to resource extraction and processing, excluding current state budget contributors like state-run oil and gas enterprises. These contributions will be reinvested annually into Ukraine, boosting the nation’s safety, security, and economic growth.
**Control Over Natural Resources**
The agreement clarifies that Ukraine is not relinquishing ownership or control of its natural resources to the United States. Rather, the fund will utilize revenues, not ownership, from these assets for reconstruction purposes. On Wednesday, a Ukrainian official reaffirmed that the U.S. will not hold ownership stakes in any of Ukraine’s resources, instead allocating 50% of resource-derived revenue to the investment fund.
**No Debt Obligations to Previous U.S. Support**
The deal notably removes President Trump’s previous demand for Ukraine to repay $500 billion as compensation for past U.S. assistance. Ukrainian contributions to the fund are deemed an investment rather than a repayment of any alleged past debt to the United States. Further, the U.S. is committed to long-term financial support and may extend further contributions outside of the fund.
Zelenskyy emphasized that Ukraine remains appreciative of prior U.S. support but contended that no prior agreements necessitate any repayment. He stressed that there were no such obligations in the past, effectively closing this chapter of discussions. Moreover, the agreement will ensure no conflict with Ukraine’s commitments to the European Union or other financial obligations.
