Tuesday, 02 January 2024 12:17 GMT

US requests USD100bn reimbursement from Ukraine


(MENAFN)
The United States is reportedly demanding up to $100 billion in compensation from Ukraine as part of a resource-sharing agreement, intended to offset American aid provided during its conflict with Russia, Bloomberg reported on Wednesday, citing insider sources.

Discussions between Washington and Kiev have been ongoing for several weeks, centered around a proposed deal—originally suggested by Ukrainian President Vladimir Zelensky—that would give the US access to Ukraine’s rare earth mineral deposits.

Initially, US officials estimated the value of their support to Ukraine at over $300 billion, but have since revised that figure down to roughly $100 billion, Bloomberg sources said. Ukraine, by contrast, values US assistance at just over $90 billion.

According to Bloomberg, American officials see the deal as a means to recover some of the financial costs incurred during the war through profits from a joint resource fund. The size and structure of this fund are still under negotiation.

Ukraine has maintained that US aid was given unconditionally and should not be treated as debt. Nonetheless, Kiev is also pushing for new American investment into the fund. However, Trump administration officials are reportedly hesitant, arguing that previous US military assistance should be considered the primary American contribution.

US Treasury Secretary Scott Bessent told Bloomberg that the two sides are "very, very close" to finalizing the agreement and suggested it could be signed as soon as this week.

An earlier attempt to formalize the deal in February, during Zelensky’s visit to Washington, fell apart after a public dispute. Former President Donald Trump accused Zelensky of showing disrespect and failing to pursue peace with Russia, warning that such actions risk escalating the conflict toward a broader war.

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