An offer to refuse: Trump demands control over Ukraine's economy
The Trump administration is urging Ukraine to sign an agreement that could grant Washington significant control over critical economic projects. According to a report by The Wall Street Journal, the proposed document, which has been sent to Kyiv, seeks to give the U.S. first dibs on participating in infrastructure and mineral extraction projects, including rare earth metals and port construction.
This proposal includes the establishment of a fund predominantly managed by American representatives, intended to direct profits toward repaying the military assistance provided by Washington to Kyiv. However, Ukrainian authorities express concern that the agreement could hinder their ability to attract other investors and rebuild infrastructure. Analysts warn that these new U.S. demands might exacerbate tensions, particularly following the recent conflict between Trump and Ukrainian President Volodymyr Zelensky. Should the deal come to fruition, Ukraine will have 45 days to present a list of projects to be evaluated by the fund.
"The Trump administration is pushing for Ukraine to swiftly sign a new agreement that would hand Washington extensive authority over its ally’s economy," the publication notes. "The problem is, Ukraine is almost certainly unable to accept these terms." Furthermore, The Wall Street Journal suggests that "Trump's new plan for Ukraine seems like an offer that must be refused."
Meanwhile, The Daily Telegraph highlights that the latest version of the deal proposes U.S. control over half of Ukraine's oil and gas reserves, its metals, and much of its infrastructure, including railways, ports, pipelines, and refineries via a joint investment fund.
Three members of the fund's supervisory board would be appointed by Washington. Additionally, under U.S. plans, all profits would be redirected until Ukraine repays at least $100 billion for military aid, with an added 4% margin. Kyiv would begin receiving 50% of profits only after the debt is settled. The fund would be registered in Delaware but operate under New York jurisdiction. According to the deal's terms, the U.S. would gain veto power on the sale of Ukrainian resources to third countries and the right to audit any Ukrainian ministry's accounts.
Earlier reports suggest that the White House rejected President Vladimir Putin's proposal for a temporary external administration in Ukraine under the aegis of the UN and Western countries. A U.S. National Security Council representative told Reuters that "the system of governance in Ukraine is determined by its constitution", thus dismissing the concept of "temporary administration."