ROMAN SHEREMETA

Trump has agreed to a cash weapons sale to Ukraine, partially lifting the hold on U.S. military aid. This comes right after Ukraine and the United States signed a historic agreement.

Is this extortion of Ukraine? Probably yes. Trump is taking advantage of Ukraine’s vulnerable position.

Is this good for Ukraine? Probably yes. Having the United States as a strategic partner provides a degree of security and assurance of military assistance.

Is this good for the United States? Absolutely. With Trump’s approval ratings at historically low levels, even a modest positive development is politically beneficial for him.

EXCLUSIVE 

Trump OKs First Cash Weapons Sale to Kyiv, Partly Lifts Hold on Ukrainian Military Aid

As peace talks slow, the Trump White House approved its first $50M arms exports to Ukraine through direct commercial sales to Kyiv.

by  Alex Raufoglu | May 1, 2025, 2:54 am

Airman Jonathan Miskelley, 436th Aerial Port Squadron ramp operator, loads cargo during a security assistance mission at Dover Air Force Base, Delaware, Jan. 13, 2023. (US Air Force photo by Staff Sgt. Marco A. Gomez)

WASHINGTON DC – On Wednesday, the Trump administration informed Congress of its intention to green-light the export of defense-related products to Ukraine through direct commercial sales (DCS) of $50 million or more, Kyiv Post has learned from diplomatic sources.

The permission – the first of its kind since Trump returned to the White House over 100 days ago – comes just weeks after the administration paused all Ukraine-related military aid for review, emphasizing a new priority: leveraging US influence to end the conflict through diplomacy rather than prolonged military support.

Congress, in its latest aid package for Ukraine, had approved over $1 billion worth of DCS-related arms sales for Ukraine. The previous US administration under President Joe Biden had allowed some of it to be used to transfer badly needed weapons, such as fully automatic .50 caliber machine guns, to the war-torn country.

From 2015 through 2023, the US had quietly authorized the permanent export of over $1.6 billion in defense articles and services to Ukraine via DCS.

“All DCS are quiet; they don’t get announced publicly like Foreign Military Sales,” Colby Badhwar, security assistance analyst at Tochnyi, a research group, told Kyiv Post’s Washington correspondent.

“The news here is basically that it [US arms sales] is continuing, despite everyone predicting that Trump would cut Ukraine off completely,” he added.

The $50 million sale license notice, first seen by Kyiv Post, was submitted to Congress via the Arms Export Control Act, a law that authorizes US Presidents to control the import and export of defense articles and services, according to formal notice sent to the Congress from the State Department’s Legislative Affairs office.

The proposed sale covers the export of defense articles, including technical data, and defense services to Ukraine.

The move also comes just weeks after President Volodymyr Zelensky announced his country’s intention to buy $30-50 billion worth of air defense systems and weapons from the US as a form of future security guarantees.

Dr. Michael Cecire, defense and security researcher at Rand, a nonprofit, non-partisan research organization, believes that if US military aid for Ukraine continues – whether it’s continuing the previous package or further exercising presidential drawdown authority – “it will strengthen US leverage.”

“The Trump administration has repeatedly communicated its desire for a lasting ceasefire in Ukraine. To achieve its goal will require leverage with both Kyiv and Moscow,” Dr. Cecire told Kyiv Post.

Alex Raufoglu

Alex Raufoglu is Kyiv Post’s Chief  Correspondent in Washington DC. He covers the US State Department, regularly traveling with US Secretary of State. Raufoglu has worked extensively in the South Caucasus and Black Sea regions for several international broadcast outlets, such as VoA, BBC, RFE/RL, etc. He holds an MA in Interactive Journalism from American University, Washington DC.

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ROMAN SHEREMETA

The U.S.-Ukraine deal is a major political and diplomatic victory for Ukraine. It gives Trump a domestic win, fostering a more positive stance toward Ukraine, and opens the door to renewed U.S. military aid.

Thanks to the incredible efforts of the Ukrainian team, an initial extortionate proposal was transformed into a balanced agreement for future joint cooperation.

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How will the U.S.-Ukraine Investment Fund work?

The Minister of Economy of Ukraine, Yulia Svyrydenko, has clarified how the Fund will work:

The United States will contribute to the Fund. In addition to direct financial contributions, it may also provide new assistance — for example, air defense systems for Ukraine.

Ukraine will contribute 50% of state budget revenues from new rent on new licenses for new areas. Ukraine may also make additional contributions beyond this baseline if it chooses. This is cooperation designed to last for decades.

The Fund will then invest in extraction projects for critical materials, oil, and gas — as well as in related infrastructure and processing. Specific investment projects will be selected jointly by Ukraine and the United States. Importantly, the Fund may invest exclusively in Ukraine.

It is expected that for the first 10 years, Fund profits and revenues will not be distributed, but instead reinvested into Ukraine — into new projects and reconstruction. These terms will be subject to further discussion.

The agreement provides mutually beneficial conditions for both countries. It is an agreement that reaffirms the U.S. commitment to Ukraine’s security, recovery, and reconstruction.

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Ukraine and the United States have signed an agreement establishing the U.S.–Ukraine Reconstruction Investment Fund.

According to the agreement, Ukraine and the United States are creating a Ukraine Reconstruction Investment Fund.

Key provisions of the Agreement:

1️⃣ Full ownership and control remain with Ukraine.
All resources located on Ukrainian territory belong to Ukraine. It is the Ukrainian state that determines what to extract and where.

2️⃣ Equal partnership.
The Fund is structured on a 50/50 basis and will be jointly managed by Ukraine and the United States. Neither side will hold a dominant vote — reflecting an equal partnership between the two nations.

3️⃣ National assets are protected.
The Agreement does not alter the privatization process or the management of state-owned enterprises — they will remain under Ukrainian ownership and control.

4️⃣ No debt.
The Agreement contains no provisions regarding debt obligations for Ukraine to the United States. Its implementation enables both countries to expand their economic potential through equal cooperation and investment.

5️⃣ Compliance with the Constitution and European integration course.
The Agreement aligns with national legislation and does not conflict with any of Ukraine’s international obligations. It also preserves Ukraine’s commitment to European integration.

6️⃣ Funding from new licenses only.
The Fund will be financed exclusively from new licenses. Specifically, 50% of revenues from new licenses for critical materials, oil, and gas — generated after the Fund’s establishment — will be directed to it. Revenues from existing or already budgeted projects are excluded.

7️⃣ Targeted legislative changes.
Only limited amendments to the Budget Code are required for the Fund’s operation. The Agreement itself will be submitted to the Verkhovna Rada for ratification.

8️⃣ U.S. support for attracting investment and technology.
The United States will assist in securing additional investments and facilitating technology transfer and development — a key element of the Agreement.

9️⃣ Tax guarantees.
Fund revenues and contributions will not be subject to taxation in either the United States or Ukraine, maximizing the efficiency of investments.

Source: Minister of Economy of Ukraine