Ukraine has expressed its readiness to invest between $30 billion and $50 billion (approximately £23.8 billion to £39.7 billion) in US military equipment, particularly air defence systems, as a long term security guarantee. President Zelensky stated Ukraine is flexible with payment methods, offering to use allocated funds or direct payments. This offer comes as the US is reportedly withdrawing troops from a key logistics hub in Poland, which handles 95% of military aid to Ukraine, citing cost savings.
Zelensky has also indicated Ukraine is open to a mineral deal with the US, but only on equal terms, criticising the current approach as treating Ukraine like a “third rate country.” His comments come amid shifting US trade policies, with President Trump reversing his decision on global tariffs for 90 days, maintaining a 10% tariff on all countries, including Ukraine, while imposing a 125% tariff on China.
These trade developments have caused significant market volatility, with US stocks initially surging 9% on news of the tariff reversal, only to decline again. The economic uncertainty has drawn criticism from US business figures, including billionaire Bill Aman, who warned of the negative impact on small businesses. Trump’s approval ratings have also declined, particularly among younger demographics.
The tariff changes have particularly affected businesses reliant on trade with China. One business owner expressed deep concern over $30,000 worth of fabric en route from China, which would now face a $40,000 tariff upon arrival in the US. Russia has also expressed concern over the tariffs, despite not being directly targeted, as they are expected to depress global oil prices, potentially impacting Russia’s budget revenue. Russia’s central bank has warned of the risks to the Russian economy from declining global trade and energy demand.
In related developments, Ukraine has captured two Chinese nationals fighting for Russia in occupied territories. Ukraine is investigating their involvement, with reports indicating that over 160 Chinese citizens are fighting for Russia. Ukraine has suggested that China could play a crucial role in ending the conflict by ceasing the supply of drone components to Russia.
Ukraine continues to receive support from its allies, with Belgium pledging $1 billion (approximately £794 million) in annual military aid and the EU transferring $1 billion (approximately £794 million) from frozen Russian assets.
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