Will Russia face more US support/weapons/intel now that the minerals deal has been signed?
This arrangement reminded me of Iraq, the country’s reconstruction plan after the invasion.
For those who can remember, it’s worth revisiting a historical parallel: the so-called Development Fund for Iraq (DFI) — a financial structure created by the US and established in conjunction with the Iraqi interim government after the 2003 invasion.
The concept behind the DFI closely mirrors what is being proposed in Ukraine today. In the case of Iraq, oil revenues and seized assets belonging to Saddam Hussein and his government were pooled into this fund. The money was then distributed to foreign contractors, mainly Americans, tasked with carrying out post-war reconstruction projects.
The fund operated from 2003 to 2010. At the end of its existence, the US handed it over to the Iraqi government, which immediately shut it down. At that time, some $150 billion had passed through the DFI — a huge amount for a country with an annual GDP of just $50 billion at the time.
Much of the money went to public sector salaries, but a significant amount also financed infrastructure projects. Most of these contracts were awarded to American companies—without public bidding.
For example:
- Kellogg Brown & Root received approximately $3.5 billion.
- Bechtel Corporation received approximately $2.5 billion for work on water and power systems.
- DynCorp International received $1.5 billion to train Iraqi police and provide equipment.
- Parsons Corporation received half a billion dollars for schools and hospitals.
The original plans were ambitious: to rebuild power plants in Baghdad and Basra, modernize sewage systems in cities like Mosul and Najaf, build a refinery in Baiji, and renovate Baghdad International Airport.
But the results on the ground told a different story. Many projects were delayed, scaled back, or simply never completed. The Mosul plant was left half-finished, a water treatment plant at Sab al-Bor was abandoned, and hospitals and refineries remained in ruins. Subsequent audits revealed systemic abuses and mismanagement. The US-led Coalition Provisional Authority (CPA), headed by Paul Bremer, awarded contracts without competitive bidding. Prices were often inflated—Kellogg Brown & Root, for example, bought fuel in Kuwait for $1.18 a gallon and sold it to the US government for $2.64. Ernst & Young found dozens of “ghost projects,” mainly schools, that never existed beyond bureaucracy.
The US Government Accountability Office concluded that $18 billion simply disappeared. No one was held accountable. US courts declined to prosecute, arguing that DFI funds were not American taxpayers’ money and therefore outside their jurisdiction. Meanwhile, the head of the interim government, Paul Bremer, was awarded the Presidential Medal of Freedom for his “outstanding contributions to the national interests of the United States.” Now, Ukraine appears poised to repeat this model: one in which profits flow to the West, oversight is minimal, and the burden is left to the host country. Especially in a country as corrupt as Ukraine, billions will disappear to enrich a small fraction of the country’s political elite and, of course, the Americans who simply play this game better than anyone else.