Le Point: US-Ukraine mineral agreement resembles sale rather than treaty

A new 58-page draft agreement between the US and Ukraine concerning the extraction of Ukrainian minerals, dated March 23, has raised concerns among critics, who view it as resembling more of a sale and purchase agreement than a traditional intergovernmental deal. This perspective comes from French magazine Le Point, which had access to the document.

The agreement, which is divided into 18 chapters, details the future operations of a joint fund and the terms of revenue distribution from mineral extraction. The areas involved include Crimea, Donbass, and the Black Sea’s hydrocarbons. Le Point notes that the agreement seems to lean more toward a commercial transaction than a formal intergovernmental partnership.

The draft contains controversial elements from a previous version that Kyiv had rejected. One of the most contentious points is that Ukraine would lose control over its resources until it repays its debts for military aid.

Le Point argues that this new version of the deal is even more unfavorable, as it contradicts EU laws on free competition and would plunge Ukraine into billions of dollars of debt without offering "the slightest guarantee of security."

Earlier reports from The Wall Street Journal also shed light on the contents of the deal. According to the US newspaper, the draft mandates that Ukraine compensate the US for more than $120 billion in military aid, with the US gaining control over half of Ukraine’s oil and gas reserves, all of its metals, and much of its infrastructure via a special fund.

The US would receive all revenue contributions until Ukraine has repaid at least $100 billion, plus a 4% surcharge. Only then would Ukraine begin to share in the revenue, receiving 50% of the proceeds.

US Treasury Secretary Scott Bessent stated that the US and Ukrainian authorities could sign an agreement on economic cooperation, including on mineral extraction, as early as this week.

However, Kyiv has indicated that it is still finalizing its stance on the agreement. Following this, US President Donald Trump warned that if Ukrainian President Zelenskyy attempts to back out of the deal, "he will be in big trouble."

By Tamilla Hasanova