WSJ: US demands Ukraine’s quick approval of deal granting Washington economic power

The Trump administration is pushing Ukraine to quickly sign a new agreement that would grant Washington extensive control over its ally’s economy.

However, Ukraine is likely unable to accept the terms, which could lead to a new round of tensions between the two nations, Caliber.Az reports per The Wall Street Journal (WSJ).

The draft agreement, aimed at recouping billions in US military and financial aid to Ukraine, was sent to Kyiv earlier this week. The proposal outlines a partnership to allow the US to profit from Ukrainian projects involving natural resources, metals, oil, and infrastructure. However, critics argue that it compromises Ukraine’s economic sovereignty. Daniel Bilak, a Kyiv-based lawyer, stated, “Ukrainians feel that they cannot give up their entire economic sovereignty for nothing.” Initially, President Trump expressed interest in Ukraine’s rare earth minerals, but the deal has expanded to include numerous sectors, including ports and pipelines.

The agreement creates a fund, the "United States-Ukraine Reconstruction Investment Fund," which would be managed by a board of five members, three from the US and two from Ukraine. This would essentially give Washington control over the fund’s direction. The deal also proposes that profits from these projects would be used to repay US military aid since Russia’s 2022 invasion. Ukraine has shown caution and is still formulating an official response. 

The draft lacks security guarantees, an issue Ukraine had prioritized, and raises concerns about whether it should repay the US for its military assistance, a question not included in earlier proposals. Experts predict difficulties for Ukraine in accepting the deal, which would grant Washington the right of first refusal on most resource and infrastructure projects. If Ukraine rejects the terms, negotiations will likely intensify, leaving both sides facing a potential breakdown in relations.

By Naila Huseynova