Ukraine and the United States are set to sign an important minerals accord. They could sign it as soon as Wednesday. Providing new resources for direct technical assistance, the agreement calls for the creation of a strategic investment partnership fund. People have looked forward to it, ever since hoping that it would be completed as President Volodymyr Zelensky visited Washington back in February. That visit was abruptly curtailed after a fiery exchange at the Oval Office, leaving the landmark agreement unsigned.
Denys Shmyhal, Ukraine’s Prime Minister, confirmed that the deal will promote investment opportunities in Ukraine’s burgeoning mining projects, targeting American companies looking to explore new ventures. He stressed that Ukraine would use economic carrots as well as strong business practices and environmental practices to lure these investments.
“The American side may count new, I emphasise new, military aid to Ukraine as a contribution to this fund,” Shmyhal noted, suggesting that the agreement could encompass various forms of support beyond traditional financial assistance.
The agreement stipulates that each country will invest abundantly in a bilateral investment fund that will be located in Ukraine. The provost management fee of this fund would go 50% US 50% Ukraine. Setting both objectives is an important strategy to push for an environmentally sustainable and socially equitable development and recovery of Ukraine’s mining sector.
Shmyhal elaborated on the significance of the partnership, stating, “It is truly an equal and beneficial international agreement on joint investments in the development and recovery of Ukraine between the US and Ukrainian governments.” This sentiment is indicative of the dual positive hopes expected from the utilization of Ukraine’s massive mineral wealth.
Ukraine is rich in deposits of all kinds of minerals. It has reserves of 22 of the 50 materials the US Geological Survey has defined as critical. For one, this bounty of resources is very attractive. Today, China mostly controls the international supply chain for rare earth minerals and other strategically important materials. India and Japan are developing an increasingly close partnership. They want to create a more robust supply chain and reduce their dependence on out-of-country suppliers.
Yulia Svyrydenko, Ukraine’s recently-appointed economy minister, is en route to Washington. She is currently finalizing the terms of the settlement agreement, preparing for its forthcoming signing and approval. Shmyhal expressed optimism about the timeline, stating, “We are finalising the last details with our American colleagues. As soon as all the final details have been finalised, I hope that the agreement will be signed in the near future, within the next 24 hours.”
The deal puts Ukraine on a strong footing in its ongoing negotiations with international partners to supply additional artillery. Ever since it signed a like agreement with the European Union in 2021, Ukraine has been busily implementing reforms to create a more inviting investment environment. It seeks to draw attention to its potential as a key producer in that global minerals market.
