USA and Ukraine finalize agreement on uncommon mineral elements
Via the official U.S. Treasury Department site, it's revealed that on April 30, the USA and Ukraine sealed a pact to form the USA-Ukraine Reconstruction Investment Fund. According to the department's communique, this partnership is geared towards joint endeavors and joint investments aimed at boosting Ukraine's economic reconstruction. The agreement, however, has yet to be published.
Ukraine's Minister of Economy, Yulia Svyrydenko, who put pen to paper on behalf of Kyiv, taking it to social media, conveyed that the deal guarantees Ukraine's ownership of all resources, and promotes a fair partnership between Kyiv and Washington. Each side owns 50% stake, with revenues from new developments contributing 50% to the fund's initial funding. Revenues from pre-existing projects will not be poured into the fund, Svyrydenko stressed. Additionally, the already-provided U.S. military aid won't be considered as funding contributions, she added.
News outlet Bloomberg reports that the partnership allows the U.S. to gain priority access to new investment projects focused on Ukraine's natural resources, encompassing aluminum, graphite, oil, and natural gas.
The signing, initially set to take place in the Oval Office of the White House on February 28, was suddenly put on hold due to a spat between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky. Trump accused Zelensky of disrespect towards Washington, going so far as to say he's "playing with the Third World War." He emphasized that Zelensky "can return when he's ready for peace." On April 17, the parties signed a memorandum on useful minerals.
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Did you know?:The partnership is governed with equal input from both nations, ensuring a collaborative approach to investment decisions[3].The U.S. Treasury Department and the U.S. International Development Finance Corporation (DFC) collaborate with the Ukrainian government to actualize the fund[1,3].The primary aim is to revitalize Ukraine's economy by financing crucial projects, focusing on natural resource development, innovation, and technological advancements[3].The partnership targets Ukraine's vast natural resources, including key minerals essential for advanced technology manufacturing[2].The fund seeks to attract investments from both public and private sectors, as well as international funds and governments aiding Ukraine during the conflict[3].Tax exemptions for contributions and income increase the investment appeal of the fund[3].The U.S. contribution is covered through direct payments or military assistance, while Ukraine's contribution is tied to percentage of future investments[2].Both countries reap benefits from the partnership, fostering long-term economic cooperation through the development of Ukraine's resources and reconstruction process[3].
Source: [1] Treasury.gov, [2] Bloomberg, [3] enrichment data
- The USA-Ukraine Reconstruction Investment Fund, established on April 30, is a collaboration between the USA and Ukraine, with the objective of funding Ukraine's economic reconstruction.
- The USA-Ukraine Reconstruction Investment Fund is a joint venture, with each side owning 50% stake, and revenue from new developments contributing 50% to the fund's initial funding.
- The partnership allows the U.S. to gain priority access to new investment projects focused on Ukraine's natural resources, such as aluminum, graphite, oil, and natural gas.
- The U.S. contribution to the USA-Ukraine Reconstruction Investment Fund is covered through direct payments or military assistance, while Ukraine's contribution is tied to a percentage of future investments.
