The Trump administration has introduced a highly controversial clause into a proposed agreement regarding Ukraine’s subsoil resources, which would force the country to repay all US aid provided since Russia’s full-scale invasion in 2022, with interest.
According to a draft of the agreement, which was leaked by European Pravda, Ukraine would be required to reimburse the total amount of US assistance, including military, humanitarian, and financial aid. This total is estimated to be a staggering $123 billion, with the majority of this sum having been allocated to military support, such as the purchase of weapons from US manufacturers and the replenishment of Pentagon stockpiles.
The agreement outlines that this repayment would be funneled through a new fund, referred to as the “initial DFC contribution,” and obliges Ukraine to convert the revenues into US dollars and transfer them to American accounts upon request. Ukraine would also be required to cover any costs incurred in this process.
Perhaps most controversially, the agreement stipulates that Ukraine must repay its “debt” on a schedule that includes an annual 4% increase. This means the longer the repayment takes, the more Ukraine would owe. The deal also includes provisions requiring Ukraine to cede 50% of the value of all new licences and royalties from the development of its mineral resources, as well as 50% of revenues from infrastructure projects related to the deal. Specific details on these infrastructure clauses have yet to be disclosed. Additionally, the agreement permits the Fund to reinvest part of its profits back into Ukraine, receiving 50% of the future profits from these investments.
The proposal has caused widespread outrage in Kyiv. Ukrainian officials, including President Volodymyr Zelenskyy, have repeatedly emphasised that US aid was provided as non-repayable support, not to be turned into a financial burden. This condition has become one of Kyiv’s primary “red lines” in the negotiations. Zelenskyy has made it clear that Ukraine would not accept any deal that converts this aid into a debt repayment obligation.
The background to this proposal dates back to February, when reports indicated that the deal on Ukraine’s mineral resources was nearly ready for signing. However, following tense negotiations between President Zelenskyy and President Trump, the signing was abruptly cancelled after a public clash between the two leaders. Despite this setback, both sides have reportedly been working on a revised version of the agreement, although a finalised deal has not yet been reached. As of 27 March, Zelenskyy confirmed that while progress was being made, the deal was still not finalised. The Trump administration, however, is reportedly pushing for the deal to be signed soon.
