Ukraine rejects US proposal for $500 bln fund over resource rights - Bloomberg
Photo: Ukraine has rejected a US proposal to create a $500 billion fund (Getty Images)
Ukraine has declined US demands to create a $500 billion fund, which was intended to be part of an agreement that would allocate a portion of the country's mineral resources for the benefit of Washington, Bloomberg reports.
According to Bloomberg’s source, the fund was supposed to compensate the assistance provided by the US to Ukraine since the beginning of Russia's aggression. However, the Ukrainian side argues that the actual amount of support is much lower around $90 billion.
Negotiations are expected to continue, as the draft agreement proposed by Washington contains controversial provisions, and Ukrainian President Volodymyr Zelenskyy is not ready to sign it.
US Pressure: Trump pushes for a deal
Another source reported that US President Donald Trump is intensifying pressure on President Zelenskyy to expedite the agreement's adoption, particularly amid growing tensions between the two leaders and concerns that Ukraine may be excluded from potential peace talks.
In an article for the Financial Times, US Treasury Secretary Scott Bessent explained that under the agreement, revenues from Ukraine's natural resources and infrastructure assets would be directed into a special fund for long-term recovery and development.
According to Bessent, the US would gain economic and managerial rights within this fund, which would ensure transparency and accountability. However, he emphasized that the US would not own Ukraine’s physical assets and that the agreement would not increase Ukraine’s debt burden.
During the visit of US Special Envoy Keith Kellogg to Kyiv, Ukrainian officials discussed the details of the agreement. It is worth noting that the initial US proposal called for 50% of revenues from the sale of licenses for minerals, oil, gas, and ports, which was perceived as a potential step toward economic colonialism.
There is no direct requirement for securing a portion of resources, but the lack of guarantees for future military and financial cooperation remains a major sticking point.
It is worth recalling that Ukrainian President Volodymyr Zelenskyy recently shared details of a potential deal between Ukraine and the US regarding rare earth minerals.
He emphasized that Ukraine had analyzed which rare earth elements the US imports for its industry. For instance, Ukraine has significant titanium reserves that could last 40 years.
The Trump administration proposed a deal in which the US would receive 50% of Ukraine’s rare earth minerals in exchange for military aid provided since 2022. However, Zelenskyy stressed that security guarantees from the US must accompany any agreement concerning Ukraine’s natural resources..
