Ukraine War | Neocolonial Business

After months of negotiations, the US and Ukraine have signed the controversial raw materials agreement . With it, Washington aims to secure access to Ukrainian natural resources in return for its military aid.

Despite repeated announcements of an imminent conclusion, the signing remained on a knife edge until the very end, as Kyiv repeatedly requested changes. At one point, US President Donald Trump threatened to lose patience with Volodymyr Zelensky because the Ukrainian leader was not following the White House's wishes.

Money should go into investment funds

According to Deputy Prime Minister and Minister of Economy Yulia Svyrydenko, the agreement provides for the establishment of a joint investment fund for the reconstruction of Ukraine. This reconstruction fund will invest in projects for the extraction of minerals, oil and gas, as well as related infrastructure. Investments may only be made in Ukraine. For the first ten years, the fund will not distribute profits and revenues, but will reinvest them. After that, the profits will be able to be shared among the partners.

Ukraine will not contribute its share to the fund from existing raw material projects, but will instead pay 50 percent of the revenue from future production licenses or raw material sales. The United States, in turn, could also contribute to the fund in the form of military aid. Kyiv also hopes for a transfer of innovation from the United States.

Kyiv believes in diplomatic success

Official reactions to the agreement were predictably positive. US Treasury Secretary Scott Bessent called it a clear signal to the Russian leadership that the Trump administration is committed to a long-term peace process. Ukrainian Foreign Minister Andriy Sybiha also called the agreement an important step in the Ukrainian-US strategic partnership. His US counterpart, Marco Rubio, sees the deal as an "important step toward ending the war."

In Ukraine, they now believe they have the upper hand. Commentators in Kyiv are rejoicing that the raw materials deal is a victory for Ukrainian diplomacy. This is especially true because painful aspects for Ukraine have been eliminated, such as the debt for the aid already provided by the United States. Trump had estimated this at $350 billion. With the agreement, Trump believes he can get more than this amount for himself and the United States. This despite the fact that it is unclear how much is actually hidden beneath Ukrainian soil and whether the raw materials can even be exploited economically.

Weapons must now be purchased

Further arms deliveries are also seen as a major success. The US plans to soon sell military equipment worth $50 million to Kyiv, reports the Kyiv Post. Unlike previous aid deliveries, however, Ukraine will now have to pay for them. And, as already mentioned, Washington can count the weapons as payment in the fund, meaning Kyiv will then have to spend the money alone.

But that's not all. As the portal "Strana" writes, the agreement contains no concrete details about the fund's work or management. Statements such as Prime Minister Denys Shmyhal's statement that both sides would hold 50 percent of the voting shares are not included in the document. Likewise, it is not codified that profits will flow exclusively to Ukraine for the first ten years. A ban on transferring the funds abroad is also missing.

Agreement very vague without concrete statements

Much of the agreement is "vague," notes "Strana." The only specific details are Ukraine's payment obligations and the US's priority in the development and exploitation of natural resources. Essentially, the agreement is not a partnership, as advertised, but rather the consolidation of a neo-colonial mechanism, concludes the critical Telegram channel Mediakiller: Control over the resources is transferred abroad, while responsibility for the social and economic consequences remains with Ukraine. Left-wing activist Vyacheslav Azarov is also critical of the deal. When the "Ukrainian side" is mentioned, this refers to the government and not the population and its interests . "In fact, we are facing the appropriation of the country by foreign capital, which is not altruistic but wants to extract profit from here," says Azarov.

Critics speak of neo-colonial exploitation

One issue that is causing headaches even for those in power in Kyiv is the lack of security guarantees from the US, which Zelenskyy had consistently insisted on. The US had explained its withdrawal by arguing that its mere presence during the exploitation of natural resources was sufficient security guarantee. Moreover, the US seems to believe that the raw materials deal will lose its significance if the war drags on any longer, writes the New York Times. A limited partnership agreement, to which the raw materials agreement repeatedly refers, could be more important, without providing any possible content or other concrete details.

The Ukrainian parliament is scheduled to vote on the agreement next week. One thing is clear: Zelenskyy is determined to push the agreement through the Rada at all costs. Even if the members of parliament may not even know what they are approving. Ukrainian media report on a secret part of the agreement, the contents of which are unknown to the members of parliament, but which is said to be extremely important for Zelenskyy's team. Ratification is also important for Zelenskyy himself, as it allows him to finally present another success.