Trump crosses red lines: proposed minerals deal demands Ukraine repay all US aid with interest

The Trump administration has reintroduced a clause into a proposed agreement on Ukrainian subsoil resources that obliges Ukraine to repay the full amount of US aid provided since the beginning of Russia’s full-scale invasion in 2022.

Source: European Pravda, citing the draft agreement text

Details: The agreement states that Ukraine must reimburse the US for all assistance – including budgetary, military and humanitarian aid – provided since the start of Russia’s full-scale war. 

This total amount would be designated as the "initial DFC contribution" to the Fund.

The Kiel Institute reports the total aid to be repaid is estimated at US$123 billion. The majority of this amount was allocated to military support, including weapons orders from US manufacturers, the transfer of surplus weapons and replenishment of Pentagon stockpiles.

The draft stipulates that Ukraine must convert Fund revenues into US dollars and transfer them to American accounts upon request, without any commission. If any such costs arise, Ukraine would also be required to compensate them.

Sources of revenue for the Fund include:

• 50% of the value of all new licences and royalties from the development of Ukraine’s mineral resources;
• 50% of revenues from infrastructure facilities (specifics on this clause are not disclosed in the agreement).

The agreement also allows the Fund to reinvest part of its revenues into projects in Ukraine, receiving 50% of Ukraine’s future profits from these investments.

Additionally, the agreement requires Ukraine to repay this "debt" on schedule. It stipulates an annual 4% increase, meaning the longer repayment is delayed, the more Ukraine would owe.

Ukrainian authorities, including President Zelenskyy, have previously emphasised that US aid was granted as non-repayable and must not be converted into debt.

European Pravda notes that this issue had been one of Kyiv’s key red lines.

Background:

• On 28 February, the minerals deal was reportedly ready for signing. After tense negotiations, Ukraine and the US reached a compromise, and the document was supposed to be signed in Washington with both presidents present.
• However, the meeting in the Oval Office began with a public clash between Zelenskyy and Trump. As a result, the presidential negotiations were cancelled.
• Zelenskyy later stated that the US had proposed a new version of the agreement on mineral resources which would require parliamentary ratification beyond the framework of the initial document.
• On 27 March, Zelenskyy said there was still no finalised version of the deal on mineral resource use, though the Trump administration is expecting it to be signed soon.

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