U.S.-Ukraine mineral deal set to boost economic recovery
The United States and Ukraine have finalized the draft of an agreement concerning Ukrainian mineral deposits. The government is expected to approve it on Wednesday, said Ukrainian Prime Minister Denys Shmyhal.
Shmyhal stated that the U.S. supports "Ukraine's efforts to obtain security guarantees for building a lasting peace."
Agreement between Ukraine and the U.S.: Here are the details
The head of the Ukrainian government pointed out that a special investment fund will be established as part of the agreement between the United States and Ukraine.
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, resource extraction, and capital investments from the U.S.
The agency also reported that the project outlines allocating fund resources to investments in strategic sectors of Ukraine’s economy, such as the mining industry and port development. Additionally, the project anticipates that the United States will be able to recoup some of its investments in Ukraine's defense and reconstruction, to restore Ukraine's economic potential to pre-conflict levels.
According to the draft agreement, Ukraine is to commit to transferring 50% of revenues from natural resource extraction — including gas, oil, and minerals — to the fund. After deducting operational costs, half of the profits from these sectors will be allocated to the joint investment budget. The funds are intended to rebuild war-torn infrastructure, foster economic development, and ensure the country’s financial independence.
