Agreement with the US on subsoil may be signed next week: MP calls it a “nightmare” for Ukraine
27 March 14:20
Next week, Ukraine and the United States may sign an agreement on economic partnership in the field of mining. This was stated by U.S. Treasury Secretary Scott Bessent in an interview with Fox News. However, MP Yaroslav Zheleznyak expressed serious reservations about its content, Komersant ukrainskyi reports
Subsoil agreement: what do they say in the US?
U.S. Treasury Secretary Scott Bessent said that the Ukrainian side is currently considering a draft of a broader agreement on “economic partnership.”
According to him, the initial version of the document was only four pages long, but the American side used the time to prepare a full-fledged agreement.
“We hope to start a full-scale discussion and maybe even get the signatures next week,” Bessent said.
He added:
“I am confident that we will continue to work and sign it quickly.”
The US wants to control all the subsoil of Ukraine without providing security guarantees
Ukrainian MP Yaroslav Zheleznyak said that he had received a draft of a new resource agreement with the United States, but stressed that it was not a final document and expressed hope that Ukraine would be able to achieve significant changes.
According to him, the document raises concerns due to a number of conditions that may be unfavorable for Ukraine.
“The text I have seen is just horrible. All 18 chapters… This is no longer a framework memorandum, but a large and clear agreement. And it is not in our favor,” Zheleznyak said.
He described in detail the key points of the draft that are alarming:
- Management by 5 people, 3 of them from the US with full veto power.
- We are already talking about all minerals. That is, there is oil and gas, both new and existing.
- All over the territory of Ukraine.
- We are talking about production by both state and private companies.
- The money is converted immediately into foreign currency.
- The fund’s money is withdrawn abroad. If for some reason something is not received on our part, we pay extra.
- The U.S. contribution is the assistance we have already received since 2022. And they can make a profit at their own discretion. And they receive the first (and then Ukraine) 4% of the “royalties” from the Fund.
- The agreement is valid indefinitely. It can be changed or terminated only with the permission of the Americans.
- “First night” rights for all new infrastructure projects and the right to veto the sale of resources to other countries.
- Nothing about security guarantees. Not even a hint.
Zheleznyak emphasized that the document contains many legal details that need to be revised.
“It can and should be changed. Otherwise, I have no idea how it can be ratified by the parliament,” he concluded.
What the government says about the subsoil agreement
Earlier , Deputy Prime Minister for European and Euro-Atlantic Integration Olha Stefanishyna explained the essence of the agreement, emphasizing that it does not provide for the transfer of subsoil use rights or any property rights.
According to Olga Stefanishyna, the framework agreement between Ukraine and the United States is not an international treaty in the classical sense, but rather a political agreement that defines the parties’ intentions to create a joint Investment Recovery Fund. This document is ready for signing, and the responsibility for this process lies with the First Vice Prime Minister and Minister of Economy Yulia Svyrydenko.
“It is important to note that the text of the agreement has already been drafted and approved by the government, and the First Vice Prime Minister of Ukraine, Minister of Economy of Ukraine Yulia Svyrydenko is authorized to sign it. In other words, the Ukrainian side has actually completed negotiations on the text of the agreement in the form in which it was approved, and it is now being prepared for signing,” Stefanishyna said.
She emphasized that this is the result of joint work of the Ministry of Economy, the Ministry of Justice and the Presidential Office, in particular the head of the Presidential Administration Andriy Yermak, who coordinated the negotiations with the US side.
Subsoil remains the property of Ukraine
One of the main concerns of Ukrainians is whether Ukraine will give away its subsoil as part of this agreement Olga Stefanishyna categorically denied such assumptions, explaining that the agreement does not concern the transfer of subsoil use rights or property.
“The agreement does not provide for the transfer of subsoil use rights or any property rights. It is about the distribution of revenues to the state budget, part of which is generated by the Fund. After signing this agreement, there are no legal consequences. That is, Ukraine does not receive any obligations to actually transfer funds or transfer them,” the Vice Prime Minister emphasized.
She added that the Constitution of Ukraine clearly states that subsoil belongs to the people, and any actions that could change this status would require not only parliamentary ratification but also a referendum. However, the framework agreement does not address these aspects, but only outlines the intention to reinvest subsoil revenues into the Ukrainian economy.
Since the agreement does not change the legal status of subsoil and does not transfer it to another state, it does not require approval by an all-Ukrainian referendum. Stefanishyna explained that the framework document does not generate immediate legal obligations, such as the transfer of funds or their transfer.
“This agreement is not an international treaty. That is, it is not subject to the law on international treaties, and the procedures for the negotiation and approval of international treaties do not apply to it. The international treaty will be a subsequent agreement that will establish the Investment Recovery Fund itself. The same agreement sets forth the political agreement between the governments of Ukraine and the United States of America regarding the intention to establish the Fund. It provides for the main elements to be enshrined in the next agreement, which will be subject to ratification by the parliament and will be an international treaty,” she said.
The future agreement on the Fund, which will have international status, will be subject to ratification by the Verkhovna Rada of Ukraine.
What to expect next week?
The signing of the agreement next week will depend on the outcome of the negotiations. The Ukrainian side will likely try to make changes to protect national interests. Yaroslav Zheleznyak has already called for a thorough revision of the text, and the Verkhovna Rada, which has to ratify the document, will be the last line of defense for its approval or rejection.
Next week will show whether the parties will be able to reach a compromise.
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Draft agreement between Ukraine and the US: what is known
In February 2025, the United States and Ukraine reached a preliminary agreement aimed at jointly developing and managing Ukraine’s mineral resources. The agreement, known as the Bilateral Agreement Establishing Conditions for the Reconstruction Investment Fund, provides for the establishment of a joint investment fund to rebuild Ukraine’s war-ravaged economy. The main objective of the fund is to attract and reinvest revenues from Ukraine’s substantial mineral wealth to contribute to its recovery and long-term stability.
Key provisions of the draft agreement
Establishment of the Reconstruction Investment Fund. According to the text of the draft agreement published by The Kyiv Independent, the fund will be jointly owned and managed by the governments of the United States and Ukraine. The ownership and financial interests of each party will be defined in a subsequent agreement on the fund. The fund will be managed by representatives of both governments, and more detailed terms will be set out in a subsequent agreement.
Ukraine’s contribution. Ukraine commits to allocate 50% of its future revenues from the monetization of its natural resources, including minerals, hydrocarbons, oil, natural gas and other extractive infrastructure, to the Reconstruction Investment Fund. These contributions will continue until the amount reaches USD 500 billion. It is important to note that current sources of revenue that are already included in the general budget of Ukraine are not covered by this agreement.
The role of the United States. The U.S. government is committed to maintaining a long-term financial commitment aimed at developing a stable and economically prosperous Ukraine. This includes investments, financial instruments, and other tangible and intangible assets critical to Ukraine’s recovery. However, the agreement does not include specific security guarantees or continued arms transfers to Ukraine; these issues will be discussed separately.
