We analyze the new text of the agreement between Ukraine and the USA regarding resource development, which could threaten Ukraine's aspirations to join the EU due to restrictions affecting economic sovereignty.
Source: material from "Ukraine-USA Analysis", containing the text of the agreement
Details: The publication notes that a key issue discussed in February was the right of American companies to develop Ukrainian resources, including ore and gas.
It was noted that only if no American investor shows interest, Ukraine can offer licenses to European businesses, but 50% of the license cost will still go to the Fund.
This undoubtedly contradicts agreements with the EU and competition principles, which Ukraine aspires to join. In the new version of the agreement, this issue has resurfaced.
The text of the agreement includes strict conditions that directly impact Ukraine's economic sovereignty. The document grants American companies exclusive rights to develop resources and important infrastructure projects in Ukraine.
Under the new terms, US companies will have priority in all future investments in the natural resources sector.
Only if they refuse will Ukraine be able to engage other investors, including Europeans. Meanwhile, the Ukrainian government is obliged to disclose all details of such negotiations to the USA.
Furthermore, the agreement prohibits Ukraine from offering better conditions to any other investor for a year after the Americans' refusal.
A specific clause in the agreement requires a ban on the sale of "critically important minerals" to countries that the USA considers strategic competitors.
This could lead to a situation where the European Union also falls under such a ban, impeding Ukraine's desire to join the EU.
One of the most controversial provisions is that Ukraine loses control over the Fund that will compensate the USA for the assistance:
- the general partner of the Fund will be appointed by DFC without agreement with Ukraine;
- a majority in the Fund's board will consist of representatives from the USA, who can make decisions without the consent of Ukrainian representatives;
- Ukrainian representatives on the board can only attempt to block a quorum, but their nominations also need DFC approval;
- the fund, which will effectively be financed by Ukrainian resources, will legally resemble an American organization, paying taxes in the USA, not in Ukraine.
If Ukraine has claims against the Fund, it will have to apply to a court in New York, not Ukrainian judicial bodies.
Additionally, the Trump administration reintroduced the requirement for Ukraine to reimburse all the assistance provided by the USA since the beginning of the full-scale invasion by Russia in 2022.
Ukrainian President Volodymyr Zelensky earlier stated that the USA offered a new version of the agreement on mineral resources, which would immediately require ratification in parliament beyond the initial framework agreement.
On March 27, he stated that there is currently no final version of the agreement for the use of Ukrainian mineral resources with the USA, which the Trump administration expects to sign imminently.