Ukraine may propose amendments to rare earths agreement this week – Bloomberg

According to Bloomberg, the US insists on controlling all major future investments in Ukraine’s infrastructure and mineral resources. In doing so, it seeks to gain veto power over any role of other allies of Kyiv, thus undermining its bid for European Union membership.

Specifically, the administration of US President Donald Trump demands a "right of first offer" on investments in all infrastructure and natural projects within the revised partnership agreement with Ukraine, according to a document obtained by Bloomberg.

If this agreement is approved, the US will gain extensive powers to control investments in Ukraine in projects such as highways and railroads, ports, mines, oil and gas, as well as the extraction of critically important minerals.

This would mark an unprecedented expansion of US economic influence in Europe’s largest country by area at a time when it is seeking to join the EU.

The agreement also grants the US a right of first refusal on profits directed to a special reconstruction investment fund. Interestingly, the US will also control this fund. The document notes that the US considers the "material and financial benefits" provided to Ukraine after Russia’s full-scale invasion in February 2022 as its contribution to this fund.

According to media reports, this means that the Trump administration wants to force Ukraine to pay for all the military and economic support provided by the US since the start of the war before Kyiv receives any proceeds from the partnership fund.

The US likely presented the revised agreement to Ukrainian representatives last weekend. Just before that, the White House stated that the US is going beyond the previously concluded deal, which covers the most important minerals in Ukraine.

At the same time, discussions between the two sides are still ongoing, and the final draft may include changes to the terms. Ukraine is likely to respond to the US document with its own amendments this week, Bloomberg reported, citing a person familiar with the matter.

According to the document, the US International Development Finance Corporation (DFC) will control the investment fund, appointing three out of five board members and holding a "golden share," which grants it special voting rights to block certain decisions. Ukraine will appoint the other two members and will not be able to interfere with the fund's daily operations.

Ukraine will be required to contribute 50% of the income from all new natural resource and infrastructure projects to the fund. The US will have the right to all profits, plus 4% annually, until their investments are recouped.

Ukraine will also be obligated to submit all projects for the fund's review "as soon as possible," with the DFC gaining seats on the board or oversight over all funded programs. Kyiv will be prohibited from offering rejected projects to other parties on "substantially better" terms for at least one year.

Additionally, under the draft agreement, the US will have the right to purchase Ukrainian metals, minerals, oil, and gas before other parties on commercial terms, regardless of whether the fund finances the project.

The agreement, which has no time frame, also prohibits Kyiv from selling critical minerals to countries that are "strategic competitors" of the US.

Rare earth agreement

In February of this year, Ukraine and the US were supposed to sign a framework agreement on rare earth minerals. However, due to a dispute between Ukrainian President Volodymyr Zelenskyy and US President Donald Trump, this did not happen at the White House.

Recently, it became known that the US has proposed a new resource agreement to Kyiv. However, according to Zelenskyy, this is already a full-fledged agreement that must be ratified by the Rada. Previously, only a framework agreement was discussed.

According to US Treasury Secretary Scott Bessent, the US has prepared a "comprehensive" version of the mineral resources agreement for Ukraine, and it could be signed next week.

However, Ukrainian MP Yaroslav Zheleznyak told RBC-Ukraine that the new rare earth metals agreement between Ukraine and the US is more commercial in nature and significantly restricts Ukraine’s rights.