US‑Ukraine resource pact stalls over transparency concerns
The USA and Ukraine encountered unexpected difficulties just before signing a crucial resource agreement. Washington has issued new demands to Kyiv, reports the "Financial Times."
What do you need to know?
- The USA and Ukraine faced problems in the final phase of negotiations over the resource agreement. The American side is concerned that it may affect transparency and accountability.
- Ukrainian officials have expressed disappointment with the US stance, which is pushing for the signing of both the framework and the detailed agreement on the fund.
- Ukrainian Prime Minister Denis Shmyhal announced that the agreement will be signed within the next five hours, Greenwich Time, and then two technical contracts will follow.
What are the main concerns of the USA?
The American side expressed concern that signing the agreement in its current form could "lead to reduced transparency and accountability."
According to Ukrainian officials, the USA wants Kyiv to sign both the framework agreement and the detailed fund agreement simultaneously to finalise the deal.
Sources from the Financial Times familiar with the negotiations indicate that during Ukrainian Economy Minister Yulia Svyrydenko's trip to Washington, American Treasury Secretary Janet Yellen stated that the minister should either be ready to sign all agreements or "return home."
Is Ukraine ready for a compromise?
Ukrainian officials emphasise that they are ready to sign the framework part of the agreement now. Still, they cannot sign both documents simultaneously because the fund agreement requires ratification by the Verkhovna Rada. One of the Ukrainian negotiation participants assessed the chances of signing the agreement as "fifty-fifty."
A Ukrainian official remarked that they appear to be impossible to satisfy.
What's next for the resource agreement?
Ukrainian Prime Minister Denis Shmyhal announced that the resource agreement between Kyiv and Washington will be signed within the next 5 hours, Greenwich Time. Following this step, signing two additional technical contracts for creating and financing an investment fund is planned. Additionally, according to MP Yaroslav Zhelezniak, payouts from the agreement will be banned for a long time, meaning profits can only be reinvested.
