The United States just made a huge tacit agreement with Ukraine. This bilateral accord is key to continuing the unprecedented stream of military assistance as the war with Russia mercilessly rages on. This agreement addresses urgent military priorities. The bill further creates a Ukraine reconstruction investment fund to help rebuild Ukraine’s economy.
Ukrainian officials, such as First Deputy Prime Minister Yulia Svyrydenko, have touted the deal as a success. They want the new military aid to include long-range, advanced air defense systems. These systems are instrumental in helping Ukraine to take the offense and stop Russian aggression. The deal sets a framework for the US to provide more assistance going forward.
This announcement is significant because Former President Donald Trump has repeatedly shied away from meeting the levels of military assistance made by President Joe Biden. Now, he’s touting the deal as one of the biggest accomplishments during his administration. Trump stated that the US will receive “much more in theory” than the billions provided to Ukraine by his predecessor. This view could bode poorly for continued military aid should Trump get back into power.
The deal establishes an investment fund that Ukraine hopes will solidify US support as it continues to repel Russian forces. In response to concerns expressed, Ukrainian Prime Minister Denys Shmyhal reiterated that the agreement does not obligate Ukraine to reimburse previous assistance. This mostly negates Trump’s previous request that Ukraine start repaying the $350 billion they’ve already received since the start of the war.
The fund will first reinvest profits back into Ukraine’s devastated economy, enabling rebuilding and restoration projects in the decades ahead. Ukrainian officials have been unequivocal about their plans. They say they want to use any money from this agreement to reassemble their fragmented country, to start new things.
“We have a chance to participate, get some of the funding and the weapons, compensation for those and be partners with the success of the Ukraine people.” – Scott Bessent
While the deal is big on military assistance, that’s only part of the story. It provides Washington with additional access to Ukraine’s vast natural resources, opening the door for new oil and gas projects and infrastructure expansion. This provision, if passed, would do even more to connect US interests to Ukraine’s economy.
Yet the announcement of the deal goes even further, employing specific, unprecedentedly harsh language toward Russia. This is a big departure from the anti-regulatory rhetoric typical of the Trump administration. The treaty highlights Ukraine’s commitment to, and eagerness to pursue EU integration. It further underscores that this ambition is going to be fully backed and not at all undermined. The US is obviously prepared to engage in good faith negotiations. This will be the case, if and when Ukraine must renegotiate any conditions due to its requirements as an EU candidate country.
Ukraine has had a strong desire to be part of the EU for years, with official accession negotiations starting last June. This agreement is a significant down payment on that aspiration. In addition, it buttresses US support and lays the foundation for Ukraine’s future integration within European structures.
As Ukraine continues to work its way through a complicated geopolitical terrain, this agreement marks a significant turn in the trajectory of US-Ukraine relations. It doesn’t stop there though—it ensures rapid military aid. Furthermore, it invests in anchoring our near-term recovery and long-term economic stability in the face of future disasters and other challenges.