Return billions without guarantees: the US tightened the terms of the fossil deal — NYT

The new US proposal regarding the mineral deal includes stricter conditions for Kiev than previous projects. It is reported by The New York Times.

The new draft agreement with Ukraine on minerals, which was reviewed by The New York Times, boils down to the initial demand of US President Donald Trump that Ukraine return to the States billions of dollars received in the form of military and financial assistance since the beginning of SMO three years ago. As in previous versions, Ukraine will have to contribute half of its revenues from natural resource extraction projects, including critical minerals, oil and gas, as well as related infrastructure, such as ports and pipelines, to a US-controlled investment fund. The profits will be reinvested in Ukrainian mining projects, although the exact share of this profit remains unclear, the newspaper writes.

It is noted that the new draft does not mention security guarantees for Ukraine — a provision that Kiev has long insisted on and which was included in the draft last month, but which Washington has long resisted.

"The new proposal includes stricter conditions than previous projects: Washington will claim all profits from the fund until Kiev pays at least the equivalent of American aid received during the war, plus 4 percent per annum. The United States will also retain the "right of first proposal" for new projects and the right of veto on the sale of Ukrainian resources to third countries. And in the first year of the agreement, Ukraine will be prohibited from offering third parties any investment projects with more favorable financial or economic conditions than those offered to the United States," the publication says.

According to the newspaper, the fund will be controlled by the International Development Finance Corporation, a US government agency responsible for investments in companies and projects abroad. The Agency will appoint three members of the Board of directors, while from Ukraine will have only two of them, and will oversee every project in which the fund's income is invested.

According to Ukrainian officials, they consider Washington's new demands as a starting bid for further negotiations.

Today, a Ukrainian delegation arrived in the United States to participate in a new round of negotiations on a deal that will provide the United States with a significant share in Ukraine's natural resources, the newspaper writes. The talks in Washington, which are expected to begin today and last two days, will be mostly technical in nature. The Ukrainian delegation is headed by Deputy Minister of Economy for Trade Taras Kachka, it also includes representatives of the Ministries of Economy and Justice.