US seeks control over Ukraine investments amid EU tensions

The agency accessed a draft of the new U.S.-Ukraine agreement, revealing the Trump administration's demand for a "right of first offer." Should the agreement be finalized in its current form, it would signify an unprecedented economic expansion by the U.S. in the largest territorial country in Europe, coinciding with Ukraine's aspirations for closer ties with the EU.

The agreement would give the United States preferential access to profits, which would be transferred to a special investment recovery fund controlled by Washington. Notably, the document states that the U.S. considers the "material and financial benefits" it has provided to Ukraine since the Russian invasion in February 2022 as its contribution to this fund. This implies that the White House would require Ukraine to compensate for all U.S. military and economic support provided since the start of the war before Kyiv could gain any income from the partnership fund, according to Bloomberg.

The revised agreement was delivered to officials in Kyiv at the end of last week. Previously, the White House indicated that the administration is expanding beyond the earlier negotiated agreement, which included rare earth metals in Ukraine. Discussions between the two sides are ongoing, and the final draft may contain amendments to the terms. Ukraine is likely to respond to the American document with its own amendments this week, according to a source familiar with the discussions reported to Bloomberg News.

The comprehensive agreement proposed by the United States requires "detailed study," with conditions frequently changing during negotiations, President Zelensky said Thursday to journalists in Paris, where he attended a summit with European leaders. Although it is premature to claim that an agreement has been secured, Zelensky stated, "We support cooperation with the US, we don’t want to give a single signal that can prompt the US to stop aid to Ukraine."

The United States remains committed to rapidly reaching an agreement and ensuring enduring peace for both Ukraine and Russia, a spokesperson for the U.S. Treasury Department stated in response to requests for comments.

Ukraine was granted candidate status for the EU in 2022 and is preparing to begin accession talks for full membership. If the U.S. were to gain substantial control over investment decisions encompassing large areas of the Ukrainian economy, it would likely complicate matters further. Ukraine has previously stated that any agreement with the U.S. cannot contradict its association agreement with the EU and has rejected U.S. pressure to consider its past support as a contribution to the joint fund.

According to the draft document, the U.S. International Development Finance Corporation (DFC) would manage the investment fund by appointing three of the five board members and holding veto rights, enabling it to block certain decisions. Ukraine would appoint the remaining two members but would not be able to interfere in the fund's daily management. The Kyiv government would be required to contribute 50% of its revenues from all new natural resources and infrastructure projects to the fund. Per the draft, the U.S. would have entitlement to all profits plus a 4% annual return until the investments are recouped.

Ukraine would be mandated to submit all projects to the fund for review "as early as practicable," and the DFC would gain seats on the board or oversight of all funded programs. Kyiv would be prohibited from offering rejected projects to other parties on "materially better" terms for at least a year.

Furthermore, the U.S. government would possess the right to purchase Ukrainian metals, minerals, and oil and gas before other parties on commercial terms, irrespective of whether the fund financed the project. The agreement has no specified time limit. According to its terms, Kyiv would lack the right to sell minerals. Additionally, the agreement would bar Kyiv from selling critical minerals to countries deemed "strategic competitors" of the United States, Bloomberg reported.