The New US-Ukraine Reconstruction Investment Fund Scoop
Details of Natural Resources Agreement: Transfer of 57 Minerals and Military Assistance to Ukraine
Let's break down the recent US-Ukraine Reconstruction Investment Fund agreement, shall we? This mouthful of a deal is all about mining and military aid, with 57 crucial minerals on the line.
The agreement, signed in Washington on April 30, outlines the political collaboration between the two governments on areas like critical minerals development, sales, and future US assistance, including military aid. However, it's worth noting that many crucial details, including the politically significant ones, will be ironed out in a forthcoming technical agreement that hasn't been signed yet.
Thisdocument, though shorter than the preliminary draft handed over by the US in March, skims over 57 minerals that Ukraine plans to mine, ranging from common ones like aluminum and copper to more unusual ones like yttrium and zirconium. Note that this only applies to new deposits for which Ukraine will issue licenses after the agreement is ratified. The list can be expanded with both parties' consent.
Interestingly, despite early proposals, the agreement excludes revenues from existing infrastructure and any pre-existing licenses.
The US contribution can come in the form of direct payments or military aid, such as arms supplies to the Ukrainian Armed Forces. The agreement also states that if the US government provides new military assistance (weapons, ammunition, technology, or training), the US capital contribution will be increased by the estimated value of that assistance.
However, it's essential to highlight that not all the Prime Minister's announced provisions made it into the final agreement. For instance, the arrangement does not mention the principles of the fund's management or the promised US commitment to refraining from withdrawing income from the fund for ten years, instead reinvesting 100% of the proceeds into Ukraine's recovery. These details are expected to be addressed in a future agreement.
So, what do you think about this new deal? Will it bring prosperity and security to Ukraine, or is it just another political pawn in a larger game? Let's wait and see!
- The recent US-Ukraine Reconstruction Investment Fund agreement focuses on political collaboration between the two governments, particularly concerning critical minerals development, sales, and future US assistance, including military aid.
- The agreement outlines the mining of 57 minerals, ranging from common ones like aluminum and copper to more unusual ones like yttrium and zirconium, with Ukraine issuing licenses for new deposits after the agreement is ratified.
- The agreement may include the US government providing military aid, such as arms supplies to the Ukrainian Armed Forces, which could increase the US capital contribution.
- Dysprosium and magnesium, among the 57 minerals, are included in the agreement, but revenues from existing infrastructure and any pre-existing licenses are excluded.
- Not all provisions announced by the Ukrainian Prime Minister were included in the final agreement, such as the principles of the fund’s management and the US commitment to refraining from withdrawing income from the fund for ten years, instead reinvesting 100% of the proceeds.
- The future of this deal is uncertain, as it remains to be seen whether it will bring prosperity and security to Ukraine or if it will be a political pawn in war-and-conflicts, general news, crime-and-justice, and politics.
