Ukraine opposes US demand to create US$500bn fund under minerals deal, Bloomberg says
www.pravda.com.ua
Sun, 23 Feb 2025 12:20:50 +0200
Ukraine has rejected the US proposal to create a US500 billion fund, which would have been part of an agreement granting Washington a share of the countrys mineral resources.
Source Bloomberg, citing a Ukrainian official, as reported by European Pravda Details The fund would have compensated the US for its support to Kyiv in the fight against Russian aggression.
However, Ukraine maintains that the actual aid provided is approximately five times less, totalling over US90 billion, the source told Bloomberg on condition of anonymity.
Another source familiar with the negotiations stated that more time is needed to finalise the deal, as the current draft proposed by the US includes some questionable elements and Ukrainian President Volodymyr Zelenskyy is not yet ready to approve it.
US President Donald Trump is pressuring Zelenskyy to accept the deal, claiming on Saturday that the two countries are very close to reaching an agreement.
Scott Bessent, the US Secretary of the Treasury, wrote in the Financial Times on Saturday that the deal would direct revenues from natural resources, infrastructure, and other assets controlled by the Ukrainian government into a fund aimed at the countrys longterm recovery and development, in which the US would have economic and governance rights.
This will ensure the transparency, accountability and corporate governance necessary to attract private investment, Bessent writes.
Lets also be clear as to what this is not.
The US would not be taking ownership of physical assets in Ukraine.
Nor would it be saddling Ukraine with more debt, Bessent added.
Ukrainian officials discussed a potential minerals deal with Keith Kellogg, US President Donald Trumps special envoy on Ukraine and Russia, during his visit to Kyiv this week, following Zelenskyys rejection of Washingtons initial proposal earlier this month.
The lack of guarantees of future US military and financial assistance remains a sticking point in the talks, a Ukrainian official noted.
Background In an interview with Bloomberg Television earlier this week, Bessent said a deal on minerals would lay the groundwork for Trumps plan to end the war by tying Ukraine to the US through economic ties, thus providing a security shield.
The US pressure on Ukraine to sign the deal comes amid a series of remarks by Trump that have put Zelenskyy in an awkward position.
The US president has also made it clear that he seeks to negotiate with Moscow on ending the war without Ukraines involvement and referred to the democratically elected Zelenskyy as a dictator with a 4 approval rating.
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