The United States and Ukraine have signed an economic partnership agreement and the creation of the American-Ukrainian Investment Fund for Reconstruction – Department of the US Treasury informed on Thursday night from Wednesday to Thursday.
The agreement awards the US privileged access to new investment projects to develop the natural resources of Ukraine, including aluminum, graphite, oil and natural gas. It is believed that this is crucial for supporting the good will of Donald Trump, when his administration presses at the end of the war, which began when Russia carried out a full -scale invasion over three years ago – writes Bloomberg.
“This agreement clearly signals Russia that Trump's administration is involved in the peace processwhich aim is free, sovereign and prosperous Ukraine in the long term, “said treasure secretary Scott Bessent in a statement quoted by Bloomberg.
US-Ukraine Economic Partnership
The Minister of Economy of Ukraine Julia Swyrydenko said in a post in social media that “together with the United States we are creating a fund that will attract global investments to our country.” “To make it clear, no state or person who financed or supplied a Russian war machine will be able to benefit from the reconstruction of Ukraine.”
Pursuant to the terms of the agreement, the United States would have priority in claims for profits transferred to a special investment fund for reconstruction, which both countries would manage together. The agreement is partly aimed at returning the United States of future military assistance for Ukraine. The fund will be financed in 50 percent. from revenues from new licenses in projects regarding critical materials, oil and gas.
Conditions of the Washington agreement with Kiev
The terms of the negotiated agreement are much more favorable for Ukraine than the initial US proposals and similar to those that President Wołodymyr Zielnski was to sign during a February visit to the White House.
Contrary to the initial US demands, the agreement does not impose on Ukraine the obligation to repay past American military assistance with income from the operation of deposits. Ukrainian deposits of raw materials are also to remain under the “full control and property of Ukraine”, while the fund itself is to be managed jointly by both sides.
The American government is also to help attract additional investments and technologies to Ukraine using the US International Development Finance Corporation (DFC) agency.
Contrary to the expectations of Ukraine, the agreement does not assume specific guarantees of US security, but – according to “Washington Post” – says about the “long -term strategic covenant” of both countries and about “the support of the United States for the security of Ukraine, prosperity, reconstruction and integration with global economic framework.”
As Swyrydenko announced, changes in the budget law of Ukraine and ratification by the Ukrainian parliament are necessary for the contract. She also assured that the agreement did not constitute an obstacle to Ukraine's integration with the EU.
Raw materials in Ukraine
Ukraine has numerous critical raw materials, including rare lands, whose mining is the subject of a contract signed on Wednesday. According to the BBC, according to the authorities in Kiev, Ukraine has about 5 percent. world “resources of critical raw materials”. At the same time, it has large resources of rare earth metal – these are 17 elements used in the production of weapons, turbines, electronic equipment and other key products in the modern world.
However, some of these deposits were occupied by Russia. According to Julia Swyrydenko, raw materials worth $ 350 billion in the occupied areas.
Source: Bloomberg, PAP, BBC
