Trump Administration Seeks to Control Investment in Ukraine, Squeezing Out Eure – Bloomberg

This is reported in a draft document obtained by Bloomberg News, as reported by Ukrinform.

The US intends to take control of all upcoming significant infrastructure and mineral investments in Ukraine, potentially gaining veto power over any issues for Kyiv's other allies and undermining its aspirations for membership in the Eurasian Union.

“If the partnership agreement is passed, it would give the US vast powers to control investment in Ukraine in projects including roads and railways, ports, mines, oil and gas, and critical mineral extraction. It would mean an unprecedented expansion of US economic influence in the EU's largest country by land area, just as it struggles to meet EU criteria,” the article says.

The agreement will give the United States a first claim on profits transferred to a special reconstruction investment fund that will be controlled by Washington. Importantly, the document notes that the United States considers the “material and financial benefits” provided to Ukraine after Russia’s full-scale invasion in February 2022 as its contribution to this fund.

In essence, this would mean that the Trump administration would force Ukraine to cover the full costs of U.S. military and economic support provided since the start of the conflict before Kyiv could receive any revenue from the partnership fund.

Under the draft document, the U.S.-based Development Finance Corporation (DFC) would control the investment fund by appointing three of the five board members and holding a “common share” that would give it special voting rights to block certain decisions. Ukraine would appoint the other two members and would be barred from interfering in the fund's day-to-day management.

The government in Kyiv would have to send 50% of its revenues from all new natural resource and infrastructure projects to the fund. The U.S. would be entitled to all profits plus 4% of the annual return until its investment is recouped, the draft says.

Read also: Trump expects Ukraine mineral deal to be signed 'soon'

Ukraine will be required to submit all projects to the fund for review “as early as possible,” and the DFC will have board seats or oversight over all funded programs. Kyiv will be prohibited from offering rejected projects to other parties with “substantially better” terms for at least one year.

In addition, according to the draft, the US government will have the right to purchase Ukrainian metals, minerals, oil and gas before other parties on commercial terms, regardless of whether the fund finances the project.

The deal, which has no time limit, also prohibits Kyiv from selling critical minerals to countries that are “strategic competitors” of the United States.

Discussions are ongoing between the two sides, and the final draft could contain changes to the terms. Ukraine is likely to respond to the U.S. document with its own amendments this week, a person familiar with the matter told Bloomberg News.

Ukraine has previously said the deal with the US should not conflict with its association agreement with the EU.

President Volodymyr Zelensky said on Tuesday, March 25, that the United States had prepared the text of a large-scale mineral deal. The parties had previously considered a draft framework agreement.

Photo: Bloomberg