Ukraine and U.S. finalize groundbreaking mineral agreement
The United States and Ukraine have finalized the draft of an agreement concerning Ukraine's mineral deposits. The government is expected to approve it on Wednesday, stated Ukrainian Prime Minister Denys Shmyhal.
Shmyhal mentioned that the United States supports "Ukraine's efforts to obtain security guarantees for building a lasting peace."
Agreement between Ukraine and the USA: Here are the details
The head of the Ukrainian government highlighted that, as part of the agreement between the United States and Ukraine, a special investment fund will be set up.
Bloomberg reported that both parties plan to create a joint reconstruction fund, financed equally by both sides. The fund would include revenues from Ukrainian state-owned enterprises and resource extraction, as well as capital investments from the United States.
The agency also noted that the project suggests the resources from the fund would be channelled into strategic sectors of Ukraine’s economy, such as the mining industry and port development. Additionally, the project anticipates that in the future, the United States will be able to recoup some of the funds it invested in Ukraine's defence and reconstruction, to restore its economic potential to pre-conflict levels.
According to the draft agreement, Ukraine is expected to commit 50% of revenues from the extraction of natural resources—such as gas, oil, or minerals—to the fund. After deducting operational costs, half of the profits from these sectors will precisely go to the joint investment budget. The funds will be allocated for rebuilding war-torn infrastructure, economic development, and ensuring the country’s financial independence.
