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Zelenskyy Calls US-Ukraine Minerals Deal a “Framework” as Security Guarantees Remain Absent

by admin February 28, 2025
February 28, 2025
Zelenskyy Calls US-Ukraine Minerals Deal a “Framework” as Security Guarantees Remain Absent

Ukraine President Volodymyr Zelenskyy has described a proposed natural resources agreement with the US as a ‘framework,’ emphasizing that it does not yet include concrete security guarantees for Kyiv.

His remarks came as a draft of the agreement, obtained by CNN, revealed that while the US acknowledges Ukraine’s security concerns, it does not make explicit commitments in that regard.

With US President Donald Trump seeking to end Russia’s war in Ukraine quickly while recovering US financial aid, Zelenskyy is positioning Ukraine’s natural resources as a way to maintain American support.

The deal, however, only states that the US ‘supports Ukraine’s efforts to obtain security guarantees needed to establish lasting peace,’ leaving open questions about Washington’s role in Ukraine’s future defense strategy.

At a press conference in Kyiv, Zelenskyy acknowledged the deal lacks specific measures on security, stating that these need to be determined through joint discussions with the US and European partners.

He described the agreement as a potential ‘big success,’ but stressed that it is a starting point for further negotiations.

The draft agreement outlines the establishment of a ‘Reconstruction Investment Fund,’ a joint initiative aimed at attracting investment in Ukraine’s critical industries, including hydrocarbons, oil, natural gas and rare earths.

Under the terms, Ukraine will contribute 50 percent of revenues generated from the monetization of state-owned natural resources to the fund, with more detailed governance rules to be determined in a future agreement.

The deal has sparked debate within Ukraine, with some citizens expressing concern over the potential long-term implications of granting Washington economic access to Ukraine’s natural resources.

Prime Minister Denys Shmyhal sought to reassure the public, stating that Zelenskyy ‘will not sign or even consider any enslaving or colonial treaties that do not take Ukraine’s interests into account.’

He framed the agreement as laying the foundation for Ukraine’s ‘future recovery.’

Another point of contention is whether Ukraine will be required to repay US financial assistance. Zelenskyy has firmly rejected the notion of debt repayment under this deal, warning that setting such a precedent would be unacceptable.

Trump, who has expressed skepticism over US aid to Ukraine, recently claimed he is ‘trying to get the money back’ that was provided under former President Joe Biden’s administration. Trump falsely said the US has given Ukraine US$350 billion since 2022; the actual amount is closer to US$120 billion, according to the Kiel Institute for the World Economy.

He also incorrectly claimed that European aid to Ukraine has been structured as loans, prompting a direct correction from French President Emmanuel Macron during a recent meeting.

Zelenskyy acknowledged the shifting political landscape in Washington, saying he plans to ask Trump directly whether the US will continue supporting Ukraine. If not, he suggested Ukraine could purchase American weapons directly, potentially using frozen Russian assets — estimated at US$300 billion — as a funding source.

The Reconstruction Investment Fund agreement is expected to be signed by US Treasury Secretary Scott Bessent and Ukraine’s Foreign Minister Andrii Sybiha. However, key details regarding governance, investment oversight and specific project allocations remain to be finalized in a subsequent agreement.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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