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US President Demands Higher Share of Ukrainian GDP than Germany’s First World War reparations
Donald Trump's demand for a $500bn (£400bn) "payback" from Ukraine goes far beyond US control over the country's critical minerals. It covers everything from ports and infrastructure to oil and gas, and the larger resource base of the country.
The terms of the contract that landed at Volodymyr Zelensky's office a week ago amount to the US economic colonisation of Ukraine, in legal perpetuity. It implies a burden of reparations that cannot possibly be achieved. The document has caused consternation and panic in Kyiv.
The Telegraph has obtained a draft of the pre-decisional contract, marked "Privileged & Confidential' and dated Feb 7 2025. It states that the US and Ukraine should form a joint investment fund to ensure that "hostile parties to the conflict do not benefit from the reconstruction of Ukraine".
The agreement covers the "economic value associated with resources of Ukraine", including "mineral resources, oil and gas resources, ports, other infrastructure (as agreed)", leaving it unclear what else might be encompassed. "This agreement shall be governed by New York law, without regard to conflict of laws principles," it states.
The US will take 50pc of recurring revenues received by Ukraine from extraction of resources, and 50pc of the financial value of "all new licences issued to third parties" for the future monetisation of resources. There will be "a lien on such revenues" in favour of the US. "That clause means 'pay us first, and then feed your children'," said one source close to the negotiations.
It states that "for all future licences, the US will have a right of first refusal for the purchase of exportable minerals". Washington will have sovereign immunity and acquire near total control over most of Ukraine's commodity and resource economy. The fund "shall have the exclusive right to establish the method, selection criteria, terms, and conditions" of all future licences and projects. And so forth, in this vein. It seems to have been written by private lawyers, not the US departments of state or commerce.
President Zelensky himself proposed the idea of giving the US a direct stake in Ukraine's rare earth elements and critical minerals on a visit to Trump Tower in September, hoping to smooth the way for continued arms deliveries.
He calculated that it would lead to US companies setting operations on the ground, creating a political tripwire that would deter Vladimir Putin from attacking again.
Some mineral basins are near the front line in eastern Ukraine, or in Russian-occupied areas. He has played up the dangers of letting strategic reserves of titanium, tungsten, uranium, graphite and rare earths fall into Russian hands. "If we are talking about a deal, then let's do a deal, we are only for it," he said.
He probably did not expect to be confronted with terms normally imposed on aggressor states defeated in war. They are worse than the financial penalties imposed on Germany and Japan after their defeat in 1945. Both countries were ultimately net recipients of funds from the victorious allies.
If this draft were accepted, Trump's demands would amount to a higher share of Ukrainian GDP than reparations imposed on Germany at the Versailles Treaty, later whittled down at the London Conference in 1921, and by the Dawes Plan in 1924. At the same time, he seems willing to let Russia off the hook entirely.
Donald Trump told Fox News that Ukraine had "essentially agreed" to hand over $500bn. "They have tremendously valuable land in terms of rare earths, in terms of oil and gas, in terms of other things," he said.
He warned that Ukraine would be handed to Putin on a plate if it rejected the terms. "They may make a deal. They may not make a deal. They may be Russian someday, or they may not be Russian someday. But I want this money back," he said.
Trump said the US had spent $300bn on the war so far, adding that it would be "stupid" to hand over any more. In fact the five packages agreed by Congress total $175bn, of which $70bn was spent in the US on weapons production. Some of it is in the form of humanitarian grants, but much of it is lend-lease money that must be repaid.
Revealed: Trump's confidential plan to put Ukraine in a stranglehold
JFC I hope Trump dies soon.
America wonders why so many countries hate it, why it has terrorism problems. This sort of deal is exactly the sort of deal which would make Ukrainians fucking despise America. Put your foot on their neck after they've just been through a devastating war, see how that works out for you. We're going to kick Ukraine into extreme nationalism with this sort of shit deal.
Essay Pro