Trump uses deal with Ukraine to strengthen US influence in world - Media
Donald Trump, President of the US (photo: Getty Images)
The Trump administration has placed its bet on Ukrainian resources as a tool for geopolitical advantage, reports Bloomberg.
The US administration views the resource agreement with Ukraine as a model for future international deals. This reflects President Trump’s strategy of leveraging Washington’s foreign policy weight to secure access to overseas assets and profits.
According to the publication, the signed agreement grants the US privileged access to new natural resource development projects in Ukraine and was a key condition set by Trump for continuing aid in countering Russia’s full-scale invasion.
A senior US Treasury official, speaking on condition of anonymity, stated that American officials view the agreement with Ukraine as a way to allow the American people to benefit from the economic growth of regions the US typically supports through grants or loans.
The official described the deal, which covers resources such as oil and gas, graphite, and aluminum, as reflecting Trump's intent to use foreign policy to grow US assets rather than liabilities.
“This is very much in line with the Trump administration’s approach to diplomacy. The Treasury Secretary said economic security is national security, and this definitely aligns with Trump’s proclivity toward deal-making above diplomacy,” said Torrey Taussig, a former Biden administration official who’s now director of the Transatlantic Security Initiative at the Atlantic Council.
However, serious questions remain about the prospects of this deal with Ukraine. Many of the potential deposits still require further exploration and investment to become commercially viable, and some are located near or beyond the front line.
Deal with the US on subsoil control
On May 1, the US and Ukraine signed a subsoil agreement, also known as the minerals deal.
The deal grants the US priority rights to profits, which will be transferred to a special reconstruction fund jointly managed by both countries.
According to Kyiv, the profits will be reinvested in Ukraine over the first ten years. The fund is also expected to reimburse the US for future military aid to Ukraine and will be financed by 50% of the revenues from licenses for new projects.
However, the agreement does not include any security guarantees that Kyiv and its European allies had hoped for. Nor does it require the repayment of the billions of dollars in US aid already provided since the start of Russia’s invasion - something Trump initially demanded.
Experts believe the agreement will support the development of Ukraine’s extractive industry.
More details about the agreement and forecasts following its signing can be found in the article by RBC-Ukraine.
