U.S.-Ukraine mineral pact sets stage for economic revival
The United States and Ukraine have finalised the draft of the agreement concerning Ukrainian mineral deposits. The government is expected to approve it on Wednesday, said Ukrainian Prime Minister Denys Shmyhal.
Shmyhal stated that the USA 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 pointed out that within the framework of the agreement between the United States and Ukraine, a special investment fund will be established.
Bloomberg reported that both parties plan to create a joint reconstruction fund, financed on a 50-50 basis. The fund would incorporate revenues from Ukrainian state-owned enterprises and resource extraction, as well as capital investments from the USA.
The agency also reported that the project suggests that resources from the fund would be directed towards investments in strategic sectors of Ukraine’s economy, such as the mining industry and port development. Additionally, the project assumes that in the future, the United States will be able to recoup some of the funds it invested in Ukraine's defence and reconstruction, aiming to restore its economic potential to pre-conflict levels.
According to the draft agreement, Ukraine is to transfer 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 go directly to the joint investment budget. The funds will be allocated to rebuild war-torn infrastructure, economic development, and ensure the country’s financial independence.
