Trump and Ukraine: Historical Economic Agreement?

Trump and Ukraine: Historical Economic Agreement?

ukraine before signing the long-awaited minerals on Wednesday, favorable conditions.

The conclusion of the agreement and the negotiations

The agreement on natural resources was finally sealed on Wednesday after weeks of long, partly tense negotiations, which at times led to tensions and brought the help of Washington to the Ukraine briefly.

Kiev was ultimately convincing US President Donald Trump to drop some of his central demands, but failed to make security guarantees on the part of the USA.

a balance of the partnership

Ukrainian officials described the final agreement as a partnership at eye level between Kiev and Washington - a remarkable difference to previous designs, which President Wolodymyr Selenskyj described as an invitation to "sell" his country.

The signed agreement that CNN is present seems to be more favorable for Ukraine than some of the previous versions.

important cornerstones of the agreement

It is essential that Ukraine does not oblige to repay the help already received from the United States - a decisive concession of Trump, which has long presented the agreement as a repayment of Ukraine to the USA.

Washington had originally called for a 500 billion dollar share in the rare earths and other minerals in Ukraine to compensate for the help that has already been achieved. When Selenskyj rejected this idea, Trump described it as a "dictator".

right to natural resources

The agreement grants the USA preferred but not exclusive rights to promoting raw materials in Ukraine and determines that Kiev has the last word about what and where is broken down. Ukraine also retains ownership on the surface.

"All resources on our territory and in our territory belong to the Ukraine. It is the Ukrainian state that is determined where and what is being broken down," explained the Ukrainian Minister of Economic Affairs Julia Svyrydenko, who signed the agreement on behalf of her country.

language of the agreement and peace goals

In a profit for Ukraine, the agreement also contains a clear language for war with Russia. It names Moscow as an aggressor in the conflict and deviates from some earlier false statements of Trump that Ukraine and Selenskyj are responsible for the war.

The agreement formulates the goal as "a peaceful, sovereign and resistant Ukraine" - a significant step away from Trump's earlier statement this year that "Ukraine could one day belong to Russia".

future prospects and EU membership

The agreement also leaves the door open for possible future membership of Ukraine in the European Union by stipulating that investments must be made in accordance with the obligations of Ukraine as an EU candidate state. It is added that if Ukraine should join the block in the future, this agreement will be re -negotiated "in good faith".

advantages for the USA

Nevertheless, the conditions of the agreement also show that the United States has secured a number of advantages. US Finance Minister Scott Bessent described it as a "historical economic partnership" and in a statement that "clearly signaling to Russia is that the Trump administration is committed to a peace process in the long term that is based on a free, sovereign and wealthy Ukraine".

Ukraine has dropped its central demand that the United States will provide security guarantees as part of this agreement. This requirement ultimately led to the loud session between Selenskyj and Trump in oval office im February.

economic interests and security

Trump refused to give security guarantees and insisted that Ukraine should first sign the agreement and later speak about guarantees. At that time, Selenskyj rejected, but Ukrainian officials have indicated that they believe that US investments and the presence of American companies in Ukraine Washington are more interested in the security of Ukraine.

experts agree. In an analyst perspective, Liam Peach and Hamad Hussain, economist from Capital Economics, wrote that the agreement "offers a certain calm that the Trump administration does not plan to completely give up Ukraine" because it establishes American economic interests in Ukraine.

The agreement that CNN is presented also that the income and other payments are tax -free in the context of the agreement and are not subject to the taxes or tariffs of Ukraine.

It is also stated that in the event of a conflict between the wording of the agreement and the Ukrainian law, the agreement will have a legally priority.