The United States (US) and Ukraine have put pen to paper for a deal that will hand America access to some of the war-torn country’s natural resources.
The move that has been in the making for months will set up an investment fund that Ukraine hopes will seal US assistance as the country still struggles to repulse Russia three (3) years after the invasion.
Here are seven (7) takeaway from the deal:
- No Ukrainian payback to the United States (US): Previously, President Trump had demanded Ukraine pay back aid that he claims has been provided during the war by America. A condition that President Volodymyr Zelenskky declined.
- More pressure from the US on Putin: Kyiv want more pressure on Russia in talks between Moscow and Washington discussing a possible ceasefire.
- Oil and Gas included with Minerals: Despite the fact that much of the discussion conerning the deal has to do with Ukraine’s mineral wealth, the agreement also encompasses provisions for oil, natural gas and other hydrocarbons.
- No obstruction to Kyiv’s EU ambitions: Ukraine has long wanted to be a part of the European Union and accession talks formally began last June. The text of the deal says that America si aware of Ukraine’s intention to join the EU and the need for this agreement not to conflict with that.
- US military commitment: The US has desiged the deal as an crucial one to sign if Ukraine is to continue to receive its military assistance.
- The US can leave anytime: It looks like there are no solid security guarantees from the US, which is something Ukraine and Europe have long been pushing the White House to deliver.
- Will the profit be reinvested in Ukraine?: One interesting area highlighted by Ukraine’s government is that for the first ten (10) years of the reconstruction investment fund, profits will be “fully reinvested in Ukraine’s economy”, either in new projects or reconstruction.
