There is panic in Kyiv, the capital of Ukraine, as the United States President, Donald Trump, is demanding a “payback” from the war-torn country that goes beyond the US taking control of its critical minerals but a higher share of Ukraine’s GDP.
Tribune Online earlier reports that the Ukraine President, Volodymyr Zelensky, had agreed to hand over the country’s minerals in partnership with the Trump-led US government ahead of peace talks with Russian President, Vladimir Putin.
However, a draft of the pre-decisional contract, marked “Privileged & Confidential’ and dated Feb 7, 2025, and obtained by The Telegraph, revealed that Trump is demanding a $500bn (£400bn) “payback.”
According to The Telegraph, the terms of the contract that landed at Volodymyr Zelensky’s office a week ago cover everything from ports and infrastructure to oil and gas, and the larger resource base of the country amounting to the US economic colonisation of Ukraine, in legal perpetuity.
The draft states that the US and Ukraine should form a joint investment fund to ensure that “hostile parties to the conflict do not benefit from the reconstruction of Ukraine”.
“This agreement shall be governed by New York law, without regard to conflict of laws principles,” it states.
The Telegraph reports that 50 percent of recurring revenues received by Ukraine from the extraction of resources and 50 percent of the financial value of “all new licences issued to third parties” for the future monetisation of resources would be taken by the US government.
A source close to the negotiations explained that there would be “a lien on such revenues” in favour of the US.
According to the source, the clause means ‘pay us first, and then feed your children’, adding that the US will have a right of first refusal for the purchase of exportable minerals” for all future licences.
Continuing, The Telegraph explained that terms, which seem to have been written by a private lawyer outside the US Departments of State or Commerce, will see Washington having sovereign immunity and acquire near total control over most of Ukraine’s commodity and resource economy. The fund “shall have the exclusive right to establish the method, selection criteria, terms, and conditions” of all future licences and projects.
Meanwhile, Zelensky in his earlier proposal for the US to take over critical minerals, had calculated that it would lead to US companies setting operations on the ground, creating a political tripwire that would deter Vladimir Putin from attacking again.
However, Zelensky had played up the dangers of letting strategic reserves of titanium, tungsten, uranium, graphite and rare earths fall into Russian hands but did not envisage he could be confronted with terms worse than the financial penalties imposed on Germany and Japan after their defeat in 1945, according to The Telegraph.
Meanwhile, Donald Trump told Fox News that Ukraine had “essentially agreed” to hand over $500bn.
“They have tremendously valuable land in terms of rare earths, in terms of oil and gas, in terms of other things,” the US President said.
On the other hand, Trump warned that should Ukraine reject the terms, it would be handed to Putin on a plate.
“They may make a deal. They may not make a deal. They may be Russian someday, or they may not be Russian someday. But I want this money back,” he said.
According to him, $300bn has been spent by the US on the war so far, describing the idea of handing over any more as “stupid”.
According to reports, $70 billion of the total $175 billion in five packages agreed by Congress was spent in the US on weapons production. While some of it is in the form of humanitarian grants, much of it is lend-lease money that must be repaid.
Tribune Online reports that Zelenskyy has vowed that Ukraine will not accept any deal that won’t be in its best interest, warning that the country must be part of any peace deal with Putin.
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