Ukraine and US could sign strategic minerals deal on 24 February
Pravda Ukraine
Ukraine and the United States are close to signing a minerals deal worth hundreds of billions of dollars. It could be signed as early as 24 February.
Source: Axios, citing its sources
Details: A Ukrainian official told Axios that the negotiations are at their final stage, and the document could be signed as soon as Monday. While the version of the document reviewed by Axios is the latest draft, changes may still be made.
Olha Stefanishyna, Ukraine’s Deputy Prime Minister, previously confirmed in an X post that the parties were close to an agreement. She noted that the signing would “showcase our commitment for decades to come”.
The draft document mentions the establishment of a Reconstruction Investment Fund, which will be jointly managed by the US and Ukraine.
“The Government of the United States of America intends to provide a long-term financial commitment to the development of a stable and economically prosperous Ukraine,” states a draft of the agreement obtained by Axios.
The fund will invest in various projects, including mineral extraction and port infrastructure development, as well as attract additional investments.
However, the document also mentions that the US intends to partially recoup its expenses related to “defending, reconstructing, and returning Ukraine” to its pre-war GDP level.
Meanwhile, the draft agreement reviewed by Axios contains a general statement about the US desire to keep Ukraine free but does not include specific commitments regarding military support.
The agreement also stipulates that Ukraine must contribute US$500 billion to the fund, with its contributions required to be twice those of the US. However, this payment will not be made directly to the US.
The draft calls for 50% of Ukraine’s revenues (excluding operating expenses) from extractive industries, including minerals, oil, and gas, to be directed to the fund.
The text includes a provision for financing projects in regions that are “temporarily occupied by the Russian Federation, in the event such areas are de-occupied”.
Background:
- Under the agreement, Kyiv and Washington will set up the Reconstruction Investment Fund for Ukraine’s recovery, with the US maintaining 100% financial interest. Both countries will manage the fund jointly.
- On 23 February, Ukraine’s President Volodymyr Zelenskyy stated that he does not intend to recognise an agreement under which Ukraine would owe the United States US$500 billion.
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