EU sanctions on Russia have failed, US treasury chief says
US Secretary of the Treasury Scott Bessent has said that the European Union’s sanctions against Russia have failed to achieve their intended goals.
He also noted that the economic agreement concluded between Washington and Kyiv finances the activities of Ukrainian military enterprises, News.Az reports, citing TASS.
“It [the agreement] is now central to the Ukrainian economy, and it even finances military factories … for Ukraine’s defense sector,” he said in an interview with NBC News.
On May 1, Ukraine’s Cabinet of Ministers published the text of the subsoil agreement signed with the United States. It was ratified on May 12.
Following the signing, Ukrainian Prime Minister Yulia Svyrydenko announced that Kyiv would contribute 50 percent of all revenues from new rents and new licenses for mineral extraction at new sites to the newly created bilateral investment fund. According to her, the United States and Ukraine would have equal voting rights in the fund’s management.
The agreement does not impose any direct debt obligations on Kyiv to Washington. During its first 10 years of operation, the fund will not pay dividends; all income will be reinvested in Ukraine. Investments will be directed toward the development and processing of mineral resources, as well as infrastructure development.
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