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New Agreement with the U.S.: Challenges to Ukraine's Economic Sovereignty

An analysis of the new agreement between Ukraine and the U.S. that may impact the country's economic sovereignty.

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In a recent analysis of the new agreement with the U.S. regarding natural resources, "EuroPravda" has identified potential threats to Ukraine's economic sovereignty that could hinder the country's integration into the European Union.

Source: material from "EuroPravda", which has access to the text of the agreement

Details: In February, during negotiations with U.S. Treasury Secretary Scott Bessent, a serious issue arose: American companies would gain exclusive rights to develop Ukrainian deposits, potentially limiting the opportunities for Ukrainian businesses.

According to the agreement, if no American investor shows interest in a specific deposit, Ukraine may offer licenses to European companies, but 50% of the license and rent fees will go to a special fund.

These provisions may contradict Ukraine's obligations to the EU and competition principles, as the agreement prohibits Ukraine from offering better terms to other investors for a year after American companies decline.

Moreover, the agreement includes clauses that prevent Ukraine from controlling the Fund through which U.S. assistance will be reimbursed, as the majority on the Fund's board will consist of American representatives.

In the event of a dispute with the Fund, Ukraine will have to appeal to the court in New York, complicating the defense of its interests.

Ukrainian President Volodymyr Zelensky has expressed concerns about the new version of the agreement, which requires parliamentary ratification.