The United States proposals for taking control of Ukrainian energy sites is like nothing seen before, one energy expert has said. Alan Riley, an expert on energy law at the Atlantic Council told the Telegraph that the latest version of Donald Trump’s much-discussed energy deal, sees the United States contribute very little despite benefiting hugely.
The deal would see the US essentially incorporate large swathes of Ukrainian oil, gas and rare minerals into its ownership, it is reported. Prof Riley said: “It is an expropriation document, there are no guarantees, no defence clauses, the US puts up nothing. The Americans can walk away, the Ukrainians can’t. I’ve never seen anything like it before.”
The revised version of the deal that was due to be signed following Trump’s now infamous row with Ukrainian President Volodymyr Zelensky, would see US companies and Trump-aligned financiers, take control of a significant proportion of Ukraine’s energy infrastructure.
The agreement seen by the Telegraph states that the US would gain control of infrastructure linked to natural resources “including, but not limited to, roads, rail, pipelines and other transportation assets; ports, terminals and other logistics facilities and refineries, processing facilities, natural gas liquefaction and/or regasification facilities and similar assets”.
Ukraine would receive 50% of profits but crucially, only would only receive this once its arrears are paid off.
The US would also gain the ability to veto exports of Ukrainian energy and rare minerals, potentially starving China of a future import opportunity, but potentially also Europe.
Prof Riley added: “It is not compatible with EU membership, and perhaps that is part of the purpose. I have to wonder whether the real intention might not be to force Zelensky to reject it.”
The US administration believed that deep-rooted American interests in Ukraine would act in place of an official “backstop” and would prevent further Russian aggression in the country.
In a post on Telegram, Ukrainian lawmaker Yaroslav Zheleznyak said the new version of the deal was a “horror”. He said, according to Newsweek, that it does not contain “anything about security guarantees” from the US.
“I hope that the Ukrainian side will demand and achieve significant changes to it,” he added.