Ukraine and US set to finalize major resource agreement
Ukraine plans to sign an agreement with the USA concerning natural resources, as reported by Bloomberg. Economy Minister Yulia Svyrydenko has traveled to Washington to finalize the agreement. The Ukrainian Prime Minister confirms that formalities could be completed within 24 hours.
Ukraine is prepared to sign an agreement with the US regarding natural resources, which is crucial for securing US support as Ukrainians defend themselves against the Russian invasion, according to Bloomberg.
According to agency sources, the agreement includes the creation of a joint Ukrainian-American fund to manage investment projects in Ukraine. The purpose of the deal is to create conditions to increase investment in the mining, energy, and related technology sectors.
Washington agreed that only the military aid it provides to Ukraine after signing the agreement will be counted as the US's contribution to the fund. Ukrainian Prime Minister Denys Shmyhal emphasized that the United States has waived previous demands to include billions of dollars of assistance provided to Ukraine since the beginning of the Russian armed invasion in the agreement.
Finalization of the agreement
Although the main points of the agreement are already established, two other technical agreements that will define how the joint fund functions are still awaiting finalization. The US Treasury Department has not yet commented on the matter. However, the Ukrainian Prime Minister has addressed it.
Today, First Deputy Prime Minister Yulia Svyrydenko is on her way to Washington. We are already finalizing the final details with our American colleagues... As soon as all the details are finalized, in the near future, I hope in the next 24 hours, the agreement will be signed and we will receive the first step—said Shmyhal on Ukrainian television.
The agreement aims to strengthen the strategic partnership between Ukraine and the USA, supporting the long-term reconstruction and modernization of the country after the destruction caused by the Russian invasion. The document, accessed by Bloomberg, highlights the need for Ukraine's reconstruction due to extensive destruction.
At the beginning of April, representatives of both countries signed a letter of intent, and work on the technical details of the agreement has been ongoing since then. The previous attempt to agree failed due to a public dispute between Ukrainian President Volodymyr Zelensky and US President Donald Trump.
Deposits worth trillions
According to Forbes, the total value of Ukraine's mineral resources is approximately $ 15 trillion. There are plenty of raw materials that are scarce in other regions of Europe, as explained in an interview with money.pl by Professor Adam Piestrzyński from the Faculty of Geology, Geophysics, and Environmental Protection at AGH University of Science and Technology in Kraków.
- It sounds like an element of fiction. But eyes may open when considering dozens of titanium deposits, accounting for 30% of the world's recognized deposits, or the accumulation of manganese ores in the eastern part of the country. Europe lacks titanium, which is used in nuclear submarines. Meanwhile, graphite is used in metallurgy, electrotechnics, and battery production. Let's also add 52 iron ore deposits, each with over 1 billion tons of resources - said Professor Piestrzyński.
Denys Shmyhal noted in an article for Politico that Ukraine is one of the most resource-rich countries in Europe. 22 of the 30 key strategic raw materials for the EU are found on its territory. This country:
- ranks first in Europe in terms of uranium deposits,
- has the most considerable lithium resources in Europe,
- has significant deposits of titanium, nickel, copper, and cobalt,
- is a key supplier of rare earth metals.
The issue is that about half of the deposits are located in regions affected by occupation or intense military activities, specifically in the Luhansk, Donetsk, and Dnipropetrovsk oblasts.
