New Proposal for Ukraine’s Mineral Rights Faces Rejection Amid Controversy

Ukraine is wrestling with demands from the U.S. administration to impose heavy concessions regarding its natural resources, with no security assurance offered.

 
As Ukraine contemplates a deal concerning its natural resource rights, the Trump administration is reportedly pressing for terms that mirror those previously dismissed by Kyiv. Sources close to the negotiations reveal that the U.S. is adamantly insisting on a deal requiring Ukraine to allocate half of its earnings from various natural resources—including minerals, gas, and oil—to a fund under American control. This fund is expected to reach a staggering $500 billion, a demand that significantly exceeds Ukraine's pre-war GDP.

The latest draft proposal, dated February 21, outlined that all proceeds from natural resources would be funneled into this fund, which the United States would manage entirely. The document lacks any mention of security guarantees for Ukraine, a critical issue raised by President Volodymyr Zelensky in previous discussions. This omission mirrors the previous proposal's failure to secure Zelensky’s endorsement, forcing him to walk away from negotiations.

Reports indicate that four present and former Ukrainian officials, as well as a local businessman privy to the discussions, confirmed the U.S. demands remain unchanged. Despite ongoing deliberations, the likelihood of Ukraine signing the current proposal is uncertain; President Zelensky has expressed hesitance towards accepting terms seen as overly burdensome.

As pressure mounts, Ukraine continues to evaluate the ramifications of entering an agreement that could jeopardize its financial sovereignty and forego vital security assurances in an already precarious geopolitical climate. The outcome of these negotiations may have significant implications for Ukraine’s economic stability and its future endeavors in resource management.