Ukraine and US may sign US$800bn reconstruction deal in Davos – The Telegraph

Ukraine and the US could sign a "prosperity" agreement aimed at rebuilding the country during a meeting of world leaders in Davos, which would envisage raising up to US$800 billion.

Source: The Telegraph, citing Western officials

Details: Ukrainian President Volodymyr Zelenskyy and his US counterpart Donald Trump "are heading to the Swiss mountain resort, where they are expected to meet and finalise the agreement".

The Telegraph added that Zelenskyy had planned to travel to the White House next week to conclude both an economic prosperity plan and a deal on post-war security guarantees. However, his European allies from the Coalition of the Willing advised against the visit and suggested the World Economic Forum as a more suitable venue for meeting Trump.

The "prosperity" agreement would envisage attracting US$800 billion for Ukraine's reconstruction over a 10-year period.

Quote from The Telegraph: "It is understood to pave the way for a series of loans, grants and investment opportunities from private companies to deliver the funds. Kyiv hopes that by offering Washington a stake in post-war reconstruction, especially in projects to which Mr Trump could be amenable, the US president will be more inclined to offer robust security guarantees."

Details: The Telegraph reported that the agreement is based on a minerals deal signed last year, which gave American investors preferential access to future extraction projects in Ukraine.

Background:

• Prime Minister Yuliia Svyrydenko said that Ukraine needs US$800 billion to cover spending over the next 10 years, excluding security spending.
• Zelenskyy said that a major section of the "peace plan" being discussed with the US covers Ukraine's recovery and envisages attracting US$700-800 billion.

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