Exclusive: US seeks to edge Europe out of funding deal with Ukraine

Washington wants to ensure that any bilateral deal guaranteeing Ukraine’s security in exchange for a share in its mineral wealth will take precedence over obligations Kyiv may have towards other allies, including the EU in the event it joins the bloc, according to a draft agreement seen by Euronews.

As reported previously, the US will seek on Wednesday finalise a bilateral agreement establishing a "Reconstruction Investment Fund", according a source familiar with the proposal.

The two-way deal and the associated funding agreement "will constitute integral elements of the architecture of bilateral and multilateral agreements, as well as concrete steps to establish lasting peace", according to the document.

The envisaged fund would contribute to Ukraine’s defence and reconstruction until its devastated economy is restored to where it stood at the end of 2021 on the eve of Russia’s full-scale invasion, with Kyiv expected to pay in half, minus operating expenses – or two-thirds (66%) in respect of any territory currently occupied by Russia which may be liberated.

The draft states that any funding agreement would include “representations and warranties, including those necessary to ensure that any obligations Ukraine may have to third parties, or such obligations that it may undertake in the future, do not encumber Ukraine’s contributions to the fund or the fund’s disposition of funds”.

In wording that appears to be designed specifically with candidate country Ukraine’s future accession to the EU in mind, the draft continues: “Any obligations in the fund agreement shall be without prejudice to the obligations of Ukraine arising from its participation or entering into any integration unions and /or free trade zones.”

Neither the Ukrainian nor US government had replied to requests for comment on the draft agreement at the time of publication.

European Council President Antonio Costa said on Monday that EU accession was the key to Ukraine's future. He told a joint press conference with EU leaders and Canadian Prime Minister Justin Trudeau in Kyiv that accession to the EU would be the most important security guarantee for the future of the country.

European Commission President Ursula von der Leyen said Ukraine might join even before 2030.

Ukrainian President Volodymyr Zelenskyy said that he hoped the US would continue to support his country. "We shouldn't lose unity between Europe and the US," he said, adding that Ukraine's potential membership of NATO or the EU would significantly improve its territorial protection.

On the topic of security guarantees, Zelenskyy said discussions with Washington were ongoing but details would not yet be made public.

"We will discuss, now it's not for public because we didn't make a decision, about the contingents and infrastructure for security guarantees,” the Ukrainian leader said. “I know the number what we need, of course we will share it, firstly, not in an open conversation, not to prepare Russians for this."

Finnish President Alexander Stubb also urged European leaders to wake up and fight for a seat at the negotiation table from which they have so far been excluded.

Stubb called on European countries to step up their efforts to develop a unified strategy that would earn them a role in the talks on Ukraine’s future. "In the past two weeks, when we have seen a shift in the trans-Atlantic partnership.... we have to wake up to a new reality," he said.