This is the (alleged) contract proposed by the U.S. to Ukraine.
It appears draconian and colonial, but if you take it seriously is nothing more than symbolic
The scope is extensive. In addition to minerals, it includes ports, other infrastructure (as agreed), oil and gas 1/
What does the U.S. commit to? Nothing! Zero!
A percentage of the US revenues to reinvested (for profit) in projects for natural resources, ports, and other infrastructure
Which percentage? Unspecified. TBD later by the U.S. (Ukraine advises) 2/
What does Ukraine commit to?
50% of all revenues from existing and new licenses and recurring payments for natural resources 3/
Also, 50% of revenues from state companies already existing and extracting natural gas, oil, minerals. 4/
What else?
The U.S. has the first right to purchase minerals for export. This suppresses competition and pricing. 5/
There will be a fund, and this fund will determine the future conditions of licenses and extraction for the market, not the government of Ukraine 6/
Ukraine is to waive sovereign immunity 7/
So, indeed, the proposal is to pay back for the previous financing, which was grants for the U.S. weapons. The U.S. commits to nothing, including any investment. Ukraine commits to pay 50% of all proceeds for all natural resources, and even ports.
The best deal ever! 9/
Why?
Because the U.S. already contributed enough 8/
It is a colonial deal, I think this is how many colonized countries got screwed in the past.
No wonder Zelensky refused to sign. 10/
I am not quite sure what the U.S. is thinking and in what kind of the world they think they operate. There is simply no mechanism for Ukraine to ratify anything like that. Plus politically it is a death sentence for Zelensky 11/
Yet, this deal is symbolic. Because all these proceeds amount to several billion dollars a year. This is pretty much interest on the support given before, nothing more. 12/
The deal looks great for the U.S. on paper, until one puts math to it. 13/
The minerals in Ukraine, those valuable ones, are in the ground and require substantive investments. If the U.S. doesn’t invest, the license revenues won’t go up. If there is not security, no one will invest. 14/
So this deal means nothing until there is durable peace. There is no value to it.
So, from that perspective, it is a smart opening move, which frames US as taking over a substantive part of potential natural resource value (think territory and land). 15/
This is the language that Putin understands. Claim to a territory. The US says it is mine, back off. Colonial? Yes. Putin’s language? Absolutely. Something he understands. 16X
This is the (alleged) contract proposed by the U.S. to Ukraine.
It appears draconian and colonial, but if you take it seriously is nothing more than symbolic
The scope is extensive. In addition to minerals, it includes ports, other infrastructure (as agreed), oil and gas 1/What does the U.S. commit to? Nothing! Zero!
A percentage of the US revenues to reinvested (for profit) in projects for natural resources, ports, and other infrastructure
Which percentage? Unspecified. TBD later by the U.S. (Ukraine advises) 2/What does Ukraine commit to?
50% of all revenues from existing and new licenses and recurring payments for natural resources 3/Also, 50% of revenues from state companies already existing and extracting natural gas, oil, minerals. 4/What else?
The U.S. has the first right to purchase minerals for export. This suppresses competition and pricing. 5/There will be a fund, and this fund will determine the future conditions of licenses and extraction for the market, not the government of Ukraine 6/Ukraine is to waive sovereign immunity 7/So, indeed, the proposal is to pay back for the previous financing, which was grants for the U.S. weapons. The U.S. commits to nothing, including any investment. Ukraine commits to pay 50% of all proceeds for all natural resources, and even ports.
The best deal ever! 9/Why?
Because the U.S. already contributed enough 8/It is a colonial deal, I think this is how many colonized countries got screwed in the past.
No wonder Zelensky refused to sign. 10/I am not quite sure what the U.S. is thinking and in what kind of the world they think they operate. There is simply no mechanism for Ukraine to ratify anything like that. Plus politically it is a death sentence for Zelensky 11/Yet, this deal is symbolic. Because all these proceeds amount to several billion dollars a year. This is pretty much interest on the support given before, nothing more. 12/The deal looks great for the U.S. on paper, until one puts math to it. 13/The minerals in Ukraine, those valuable ones, are in the ground and require substantive investments. If the U.S. doesn’t invest, the license revenues won’t go up. If there is not security, no one will invest. 14/So this deal means nothing until there is durable peace. There is no value to it.
So, from that perspective, it is a smart opening move, which frames US as taking over a substantive part of potential natural resource value (think territory and land). 15/This is the language that Putin understands. Claim to a territory. The US says it is mine, back off. Colonial? Yes. Putin’s language? Absolutely. Something he understands. 16XSource (one of several):
yes
This is the (alleged) contract proposed by the U.S. to Ukraine.
It appears draconian and colonial, but if you take it seriously is nothing more than symbolic
The scope is extensive. In addition to minerals, it includes ports, other infrastructure (as agreed), oil and gas 1/ ... What does the U.S. commit to? Nothing! Zero!
A percentage of the US revenues to reinvested (for profit) in projects for natural resources, ports, and other infrastructure
Which percentage? Unspecified. TBD later by the U.S. (Ukraine advises) 2/ ... What does Ukraine commit to?
50% of all revenues from existing and new licenses and recurring payments for natural resources 3/ ... Also, 50% of revenues from state companies already existing and extracting natural gas, oil, minerals. 4/ ... What else?
The U.S. has the first right to purchase minerals for export. This suppresses competition and pricing. 5/ ... There will be a fund, and this fund will determine the future conditions of licenses and extraction for the market, not the government of Ukraine 6/ ... Ukraine is to waive sovereign immunity 7/ ... So, indeed, the proposal is to pay back for the previous financing, which was grants for the U.S. weapons. The U.S. commits to nothing, including any investment. Ukraine commits to pay 50% of all proceeds for all natural resources, and even ports.
The best deal ever! 9/ ... Why?
Because the U.S. already contributed enough 8/ ... It is a colonial deal, I think this is how many colonized countries got screwed in the past.
No wonder Zelensky refused to sign. 10/ ... I am not quite sure what the U.S. is thinking and in what kind of the world they think they operate. There is simply no mechanism for Ukraine to ratify anything like that. Plus politically it is a death sentence for Zelensky 11/ ... Yet, this deal is symbolic. Because all these proceeds amount to several billion dollars a year. This is pretty much interest on the support given before, nothing more. 12/ ... The deal looks great for the U.S. on paper, until one puts math to it. 13/ ... The minerals in Ukraine, those valuable ones, are in the ground and require substantive investments. If the U.S. doesn’t invest, the license revenues won’t go up. If there is not security, no one will invest. 14/ ... So this deal means nothing until there is durable peace. There is no value to it.
So, from that perspective, it is a smart opening move, which frames US as taking over a substantive part of potential natural resource value (think territory and land). 15/ ... This is the language that Putin understands. Claim to a territory. The US says it is mine, back off. Colonial? Yes. Putin’s language? Absolutely. Something he understands. 16X ... Source (one of several):
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