Financial News: USA and Ukraine — Tensions Ahead of a Decisive Agreement on Subsoil Use
Recent updates from the international energy sector indicate a potential setback to a key agreement between Ukraine and the United States concerning the management and utilization of subsoil resources beneath Ukrainian territory. The signing of this framework agreement, which was planned to take place in Washington, has come under serious threat of last-minute cancellation, raising questions about the future of Ukrainian-American cooperation in energy and investment fields. According to information published by the reputable publication **Financial Times**, the Ukrainian delegation was already en route to the U.S. capital when unforeseen disagreements arose. Sources report that as soon as the flights with First Vice Prime Minister Yulia Svyrydenko onboard took off from Kyiv, representatives of the American Ministry of Finance, led by Secretary Scott Bessent, sharply informed the Ukrainian side that they must be prepared to sign all drafted documents, or the delegation would be sent back without signing. Such hints point to significant pressure from the American side, since the signing of these agreements is crucial for the continuation of cooperation amid major geopolitical challenges. Sources close to the negotiation process have reported that the current discussions revolve around two critical agreements: the first — a framework cooperation and subsoil use agreement, and the second — a separate, more detailed agreement on the creation and funding of an investment fund. It is this second agreement that envisions a mechanism for managing revenues from mineral extraction and is one of the key components for financial support of Ukraine’s resource sector. Another source, closely monitoring US-Ukraine negotiations and possessing internal insights into the American position, informed FT that negotiations allegedly stalled due to Ukraine’s attempt to amend previously agreed-upon provisions of the documents late last week. According to reports, Ukraine tried to "review" certain contractual clauses, which reportedly caused displeasure among American diplomats and officials. It is worth noting that the Ukrainian side has denied this information and emphasized that U.S. media are presenting an inaccurate portrayal of events. According to representatives of the Ukrainian delegation, signing both documents on Wednesday is impossible due to the need for ratification by the Verkhovna Rada — a procedure that, by regulation, would take several additional days. They stress that Kyiv is ready to sign but demands adherence to constitutional procedures and approvals at the parliamentary level. Recall that on April 30, Ukrainian Prime Minister Denys Shmyhal publicly highlighted the country's readiness to sign all necessary documents to strengthen economic partnership with the U.S. He noted that the signing of the framework agreement is a significant first step, followed by the signing of two additional technical and legal documents — on the creation and funding of the investment fund and its operational mechanisms. According to the Prime Minister, these documents could serve as an important milestone not only in developing mutual cooperation but also in strengthening Ukraine’s energy security during challenging times. Overall, the situation remains tense and uncertain. Important energy agreements that could help Ukraine attract significant investments into its mineral extraction sector and enhance its energy independence are currently in question. The final decision depends on diplomatic efforts, negotiations in Washington and Kyiv, and the ability of both sides to find a compromise. In any case, time is working against Ukrainian-American cooperation, and all signs suggest that the long-anticipated agreement may be delayed indefinitely.