Diplomatic Strain Hampers US-Ukraine Economic Deal

Tensions ran high as Treasury Secretary Bessent called out Ukrainian President Volodymyr Zelenskyy over the failed White House meeting late last week.

Key Takeaways

Ukrainian President Zelenskyy has expressed a willingness to sign the economic deal despite the lack of agreement.
A meeting at the White House last week ended without a deal after intense exchanges with President Donald Trump and Vice-President J.D. Vance.
Treasury Secretary Bessent has argued that no economic deal can be made without a peace deal.
French President Macron floated a month-long truce between Ukraine and Russia.
Trump has decided to freeze aid to Ukraine until he believes the country is serious about seeking a peaceful resolution.
Lawmakers have been critical of the incident at the White House, with some blaming Zelenskyy and others blaming Trump and Vance.

Diplomatic Strain In Washington

Treasury Secretary Scott Bessent recently called attention to the roadblocks facing the U.S.-Ukraine economic agreement, which appears to be in limbo for now, blaming Ukrainian President Volodymyr Zelenskyy for the failed meeting at the White House last week. The friction reached a peak during an intense exchange involving Zelenskyy, former President Donald Trump, and US Vice-President JD Vance, which unfolded within the White House. These talks, intended to cement critical security ties through economic collaboration, fell apart without any agreement being finalized between the two nations.

Zelenskyy, despite the setback, expressed his readiness to finalize the deal, aiming to strengthen the security affiliation with the US amidst a backdrop of complex international relations. According to him, he still wants to have a “constructive dialogue” with the U.S, and told reporters, per The BBC, “I just want the Ukrainian position to be heard.”

Ukraine still 'ready' to sign US minerals deal, Zelensky tells BBC https://t.co/WrjAO7rQ89

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Roadblocks To Economic Agreement

The negotiations last week were disrupted following doubts cast by Zelenskyy regarding the reliability of Russian President Vladimir Putin in future peace agreements. This hesitation provoked heavy criticism from both Trump and Vance, who have accused Zelenskyy of not wanting peace.

Meanwhile, despite Zelenskyy saying he is still ready to sign, Trump later made the decision to halt aid to Ukraine entirely. An official reportedly spoke to Bloomberg, telling the outlet that the freeze will only end when Ukraine shows it is making proper efforts to secure peace.

During an appearance on CBS News’ “Face the Nation,” Bessent expressed that it’s “impossible to have an economic deal without a peace deal,” and that he holds Zelenskyy responsible for the failure of discussions. “All President Zelensky had to do was come in and sign this economic agreement, and again show no daylight — no daylight — between Ukrainian people and the American people, and he chose to blow that up,” he said.

Calls For Unity Amid Conflicting Actions

While some have criticized Zelenskyy for the incident, others have placed the blame on Trump and Vance. Rep. Mike Turner, for instance, referred to Zelenskyy’s behavior as “inappropriate.”

Senator Mark Kelly, on the other hand, notably described the failed discussions and their subsequent international fallout as a “dumpster fire of diplomacy,” but said he believed Zelenskyy was “cornered” and “bullied.” He indicated he believes the only winner in this situation was Russia.

The scenario catalyzed further by French President Emmanuel Macron’s suggestion of a temporary ceasefire for potential peace talks, aimed to navigate the stalemate. It is still unclear, however, whether Zelenskyy is open to such an idea.