Zelensky expresses approval for a "fair and equitable" agreement with the U.S.

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Zelensky's Remarks: Fair Deal, No Initial Debt to US

In an unexpected turn of events, the agreement between Ukraine and the United States has morphed significantly during negotiations. President Zelensky declared it a genuinely equitable deal, offering prospects for substantial investments in Ukraine.

During the same statements, Zelensky highlighted that this document no longer imposes an initial debt on Ukraine towards the United States, contrary to the intentions of US President Donald Trump. Instead, the agreement aims to establish an investment fund to pour capital into Ukraine, generating profits for all parties.

The recently signed accord concerns the mining of minerals, oil, and gas in Ukraine, which US corporations will have the opportunity to exploit.

The document penned between Washington and Kyiv also lays the groundwork for the creation of an "investment fund for reconstruction" in Ukraine, although it does not promise future military assistance from the United States as an explicit guarantee.

According to the US news agency AP, the United States aims to secure more than 57 strategic raw materials from Ukraine, including titanium, crucial for aircraft and aerospace industries, and uranium, utilized in nuclear energy, medical equipment, and weapons.

Initially scheduled for signing during Zelensky's White House visit at the end of February, the agreement’s earlier version was held back due to an unprecedented spat with Trump in the Oval Office, leading to Zelensky's premature exit from Washington without the agreement's signing.

In parallel, diplomatic efforts are ongoing to find solutions for the conflict in Ukraine, instigated by Russia over three years ago.

During the presidency of Joe Biden (2021-2025), Washington provided Ukraine with military aid worth tens of millions of dollars following Russia's 2022 invasion of the country.

For further reading: After Impasse, Ukraine and USA ink Agreement

Key Insights from Enrichment Data

Creation of Investment Fund: The agreement in question establishes the United States-Ukraine Reconstruction Investment Fund, which will act as a limited partnership involving the U.S. International Development Finance Corporation and Ukraine's Agency for Supporting Public-Private Partnership. Half of the revenues from new licenses in critical materials, oil, and gas will be funneled into this fund once it is created.
Mineral and Petroleum Resources Access: The deal enumerates a precise list of 57 mineral resources, including uranium, lithium, rare earth elements, precious metals like gold and platinum, oil, and natural gas. Ukraine remains the sole proprietor of its natural resources, as state-owned enterprises continue to be state assets.
Strategic Raw Materials Access and Investment Opportunities: The agreement obligates Ukrainian authorities to ensure that anyone with mining or infrastructure licenses shares investment opportunities with the American-Ukrainian fund, thus preventing more favorable terms for other parties. Future investments under the fund must comply with Ukrainian and EU laws, promoting Ukraine's EU accession process without impediments.
Security and Support Commitments: Though the agreement does not offer concrete security guarantees to Ukraine, it reaffirms a long-term strategic alliance and the United States' commitment to supporting Ukraine's security, prosperity, and economic integration into global forums. The U.S. Treasury has stressed that the deal signifies a dedication to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term.

Ukraine's Advantages:

The agreement aims to facilitate Ukraine's reconstruction and economic recovery, particularly in the wake of ongoing conflict with Russia.

US Participation:

The United States will profit from access to Ukraine's strategic mineral resources, benefiting both nations' economic interests.

The United States-Ukraine Reconstruction Investment Fund, according to the agreed policy and legislation, will be created with the aim of providing substantial investments for Ukraine's recovery and development, as declared by President Zelensky.
In 2025, the creation of this fund will be based on half of the revenues from new licenses in critical materials such as mineral resources, oil, and gas.
The Ukrainian government, as outlined in the agreement, will provide access to valuable strategic raw materials like titanium, uranium, lithium, and more to the US, opening up opportunities for investments within the country.
The agreement also reiterates the general news that the US remains committed to supporting Ukraine's security, prosperity, and its economic integration into global forums, while maintaining a long-term strategic alliance.