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New Challenges for Ukraine's Economy: Agreement with the USA

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«EuroPravda» has examined the new agreement with the USA, which could jeopardize Ukraine's economic sovereignty and its European aspirations.

Source: material from «EuroPravda», which contains the text of the agreement.

Details: Reports indicate that in February, US Treasury Secretary Scott Bessent raised concerns about exclusive rights for American companies to exploit Ukrainian natural resources.

Under the agreement, only if there is no interest from American investors, Ukraine may offer licenses to other companies, but 50% of the license fees remain with the fund.

This raises concerns about the compatibility of the agreement with European norms, as investment restrictions may harm Ukraine on its path to the EU.

The new agreement includes stringent conditions that grant American companies priority for all investments in natural resources.

Only if they refuse, other investors, including those from Europe, may gain access to Ukrainian resources. However, the Ukrainian government is required to provide the USA with all details of these negotiations.

Additionally, the agreement prohibits Ukraine from offering better terms to investors for one year after an American refusal.

Furthermore, the country is obliged to include in licenses conditions that prohibit the sale of critical resources to US competitors.

This could lead to trade restrictions with the EU, which is critically important for Ukraine.

The most controversial part is the clause that removes Ukraine's control over the fund through which compensation to the USA for assistance will be processed:

  • the general partner of the fund is appointed by the DFC without agreement with Ukraine;
  • US representatives will control the majority on the fund's board;
  • Ukrainian representatives on the board can only attempt to obstruct a quorum;
  • the fund, which will be financed by Ukrainian resources, will pay taxes in the USA.

In case of any claims, Ukraine will have to address the court in New York.

The Trump administration also included a requirement for Ukraine to reimburse all assistance costs incurred by the USA after the start of the war.

Ukrainian President Volodymyr Zelensky has stated that the USA is offering a new agreement, which must be ratified by parliament.

On March 27, he noted that the final version of the agreement is not yet ready, but signing is expected soon.