Ukraine and the US Team Up for a Big Investment Deal
A Strategic Deal on Minerals
Ukraine and the United States have embarked on a significant collaboration, establishing a joint investment fund as part of a minerals deal. The inaugural meeting of the board overseeing this fund has just concluded.
Economic Boost Amidst War
This agreement is pivotal for Ukraine's economy, which has been severely impacted by the ongoing war with Russia. In exchange for granting the U.S. special access to Ukrainian minerals, the U.S. will invest funds to bolster Ukraine's economy and support its defense efforts.
Key Agreements and Future Steps
During the meeting, Ukrainian and U.S. officials reached several crucial agreements:
- Established committees
- Appointed fund managers
Ukrainian Prime Minister Yulia Svyrydenko emphasized the close collaboration with the U.S. at all levels.
U.S. Treasury Secretary Scott Bessent participated in the meeting virtually. Svyrydenko highlighted that U.S. investments would enhance security for both Ukraine and American businesses operating in the country.
Strengthening Ties Amidst Conflict
Despite the escalating war with Russia, Ukraine aims to maintain strong ties with the U.S., a vital military ally. The minerals deal was initially brokered under former U.S. President Donald Trump. Under this agreement, half of the revenue generated from mining will be deposited into the joint investment fund.
Next Steps and Future Projects
The next phase involves identifying projects for the initial investments. This will be discussed later this month when a delegation from the U.S. development institution DFC visits Ukraine.
Demonstrating Commitment
To underscore its commitment to the minerals deal, the Ukrainian government is reviewing all mining licenses and has launched a competition to find a partner to mine a lithium deposit in the central Kirovohrad region.
Ukraine's Mineral Wealth
Ukraine is rich in essential minerals, including:
- Ferro alloys
- Precious metals
- Non-ferrous metals
- Rare earth elements
These minerals are crucial for defense, high-tech devices, green energy, and construction.