The administration of US President Donald Trump is pushing Ukraine to sign an agreement that would give Washington control over key economic projects, the Wall Street Journal wrote, citing a draft document sent to Kiev.
The United States is seeking to receive first priority participation in Ukrainian infrastructure projects and mineral extraction programs, including rare earth metals and port construction. The fund will be managed mainly by American employees and will use its profits to repay military aid provided by Washington to Kiev.
The Ukrainian authorities, the publication points out, fear that the terms of the agreement will limit their ability to attract other investors and restore infrastructure. Analysts believe the new US demands could exacerbate tensions in relations, especially after the recent conflict between Trump and Volodymyr Zelensky.
If the agreement is signed, Ukraine will have to submit a list of projects for consideration by the fund within 45 days.
The Daily Telegraph reported on Thursday that the latest version of the deal would give the US control, through a joint investment fund, over half of Ukraine's oil and gas reserves, its metals and much of its infrastructure, including railways, ports, pipelines and refineries. Three members of the fund's supervisory board would be appointed by Washington. In addition, the US plans to receive all profits until Ukraine pays it at least $100 billion in compensation for military aid with a 4% markup. Kiev will start receiving 50% of the profit only after the debt is repaid.
The publication adds that the new fund will be registered in the state of Delaware, but will operate under the jurisdiction of New York. Under the terms of the deal, the United States will receive the right to veto the sale of Ukrainian resources to third parties and the ability to audit the accounts of any Ukrainian agency.