Ukraine-U.S. Raw Materials Deal Nearing Completion
Breaking: Ukraine and the US Ink Agreement for Joint Resource Ventures
Hang onto your hats, folks, because it's looking like Ukraine could be inking a resource deal with the US real soon. A juicy tidbit from a Ukrainian government source to Reuters suggests the deal could be signed as early as this evening, Kiev time.
This agreement would hand the US exclusive access to rare resources and minerals in Ukraine, a move championed by none other than President Donald Trump. It's all part of his strategy to quash the Russian military conflict against Ukraine.
The draft of the agreement leaked to Reuters shows the formation of a US-Ukrainian fund for reconstruction. Half of the revenues, including license fees and royalties, from new resource permits go into this fund. The remaining funds from future US military aid to Ukraine would contribute to the joint fund, as if propping a business-war hybrid.
But here's where things get murky. The spending of these joint funds remains undefined—who benefits, and how? Without a clear spending plan, one can't help but wonder how these funds will be allocated.
Interestingly, the draft agreement doesn't grant the US exclusive rights to these new opportunities, only preferential access. This is a shift from earlier versions of the agreement, which promised control over the spending of funds and potential access to Ukraine's valuable gas infrastructure, one of the country's most precious assets. However, in the current draft, the gas sector seems to have been left out.
Now, let's talk about the fine print. The U.S.-Ukraine Reconstruction Investment Fund, established in 2025, splits revenues 50/50 from natural resource projects, focusing on economic growth, job creation, and infrastructure. The spending decisions are made by a transparent board with equal U.S. and Ukrainian representatives. Moreover, the U.S. gets first refusal rights to acquire resources, ensuring critical materials don't end up in the wrong hands. Russian-aligned entities are also given the cold shoulder.
So, what's the deal with? Well, it's a fascinating blend of economic growth and political strategy, with both nations hoping to secure strategic interests and boost their economies. But, without a clear plan for using the funds, one can't help but feel skeptical about the long-term implications.
Stay tuned for updates!
(Sources: Reuters, Thomson Reuters, various dates)
- The fund established by the agreement between Ukraine and the US will primarily focus on economic growth, job creation, and infrastructure.
- A lack of a clear spending plan for the joint fund raises questions about how the funds will be allocated.
- The agreement grants the US preferential access to rare resources and minerals in Ukraine, as opposed to outright exclusive rights.
- The formation of the US-Ukrainian fund for reconstruction is a key part of President Trump's strategy to combat the Russian military conflict in Ukraine.
- The U.S. gets first refusal rights to acquire resources, ensuring critical materials don't end up in the wrong hands, particularly those affiliated with Russian-aligned entities.
- This agreement, set to be signed potentially this evening Kiev time, is another development in the ongoing war-and-conflicts and politics surrounding Ukraine.
