US, Ukraine Sign ‘Mineral’ deal rebuilding investment fund: what we know so far
The United States and Ukraine have signed a new mineral deal after months of months after months, where Washington will get access to Ukraine’s rare earth resources, while Kiev will get military assistance.
The deal signed on Wednesday still needs to be confirmed by Ukraine’s Parliament, but is already seen as already as beneficial for the country as compared to earlier proposals that the authorities had criticized as unilaterally.
This is an agreement in which the United States notes its commitment to promote long -term peace in Ukraine and Ukraine has recognized the contribution made to global security, except for its nuclear arsenal, “Ukrainian economy minister Yulia Severdenco said in a Facebook post.”
Will establish both countries Joint reconstruction investment fundEach side has equal voting rights.
What is a joint reconstruction investment fund?
The United States and Ukraine will jointly create an investment fund for reconstruction, ensure similar voting power for both countries.
A comprehensive agreement includes 57 different resource categories including petroleum and natural gas.
All profits generated by the fund will only be directed to the development of Ukraine, with no obligation to repay the adequate American support provided for Ukraine after Russia’s February 2022 invasion.
The agreement states that future American military aid will be considered as a contribution to funds.
Ukraine maintains complete sovereignty on its underground resources, infrastructure and natural property.
For the initial decade, the agreement will focus only on mineral extraction, oil and gas enterprises financing with infrastructure and processing facilities in Ukraine only. Subsequently, according to Kiev, profits can be shared between participating countries.
Ukraine confirmed that this system would not affect its aspirations for membership of the European Union.
How will it work?
The cooperation between the United States and Ukraine creates a funding mechanism where 50% of income will be collected from Ukraine’s natural resource undertakings including royalty and licensing fee.
The accumulated amount will support the new Ukrainian initiative, which provides continuous benefits to both American and Ukrainian citizens through strategic investment.
The fund enables Swift deployment of resources for Ukrainian developmental purposes, focuses on economic expansion and employment opportunities as new enterprises are identified.
The results will strengthen the commercial field of Ukraine, while establishing the durable infrastructure, will contribute to the continuous prosperity of the country.
A joint managed organization, which includes three Ukrainians and three American directors in the same measurement, will oversee partnership through consenting decisions about fund allocation and investment strategies.
This system emphasizes accountability and openness, ensuring that the population of both nations benefits from the efforts of Ukraine to reconstruct.
The scope includes projects related to the development of minerals, hydrocarbons and related infrastructure.
The United States holds priority rights to achieve these resources or nominate favorite buyers.
This system protects national security through economic measures, which prevents strategic resources from unfair acquisitions.
The partnership displays the tangible commitment of America for the prosperity of Ukraine, which sends a clear signal to Russia.
Any organization or individual supporting Russia’s military efforts will be excluded from Ukraine’s reconstruction process, including funded projects through this fund.
