Ukraine aims to wrap up minerals deal talks with US within a week
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The US has signalled it expects to have privileged access to Ukraine's natural resources by way of repayment for US military support.
PHOTO: REUTERS
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KYIV - Kyiv said on April 18 that it aims to complete talks by the end of next week about a deal with Washington on jointly exploiting Ukrainian mineral resources – an agreement Ukrainian officials hope will go some way to firming up softening US support for the country in its war with Russia.
Though the terms of the eventual deal have not been finalised, Washington has signalled it expects to have privileged access to Ukraine’s natural resources as a form of repayment for US military support for the country over the past three years.
Late on April 17, the US and Ukrainian governments signed a memorandum of intent
The memorandum represented a step towards repairing ties between Kyiv and Washington that appeared to be hanging by a thread in February, when an Oval Office meeting between US President Donald Trump and Ukrainian President Volodymyr Zelensky turned into a shouting match.
According to the text of the memorandum, published by the Ukrainian government on April 18, the aim of both sides is to complete discussions on the final deal by April 26, and to sign it soon after.
The memorandum said Ukrainian Prime Minister Denys Shmyhal will travel to Washington at the start of next week to meet US Treasury Secretary Scott Bessent and work on the deal together.
“We are happy to announce the signing with our American partners,” Ms Yulia Svyrydenko, Ukraine’s First Deputy Prime Minister and Economy Minister, said on social media on April 17, referring to the memorandum of intent.
She said the document “testifies to the constructive joint work of (their) teams and the intention to finalise and conclude an agreement that will be beneficial to both (their) peoples”.
According to the text of the memorandum, it paves the way for an economic partnership deal and the setting up of an investment fund for the reconstruction of Ukraine.
The text did not give any details about the terms of the eventual deal, including what access the US would have, and how much revenue it would stand to gain.
In Washington, Mr Trump told reporters: “We have a minerals deal, which I guess is going to be signed on (April 24).”
Mr Trump has been critical of the billions of dollars of aid that his predecessor Joe Biden gave to Ukraine, saying it was a bad deal for the US.
He has also indicated he wants closer ties with Moscow, which launched a full-scale invasion of Ukraine in 2022.
The White House did not respond to a request for further details on the timing and contents of the agreement.
Prized resources
A draft of the minerals deal that was under discussion earlier in April would give the US privileged access to Ukraine’s mineral deposits and require Kyiv to place in a joint investment fund all income from the exploitation of natural resources by Ukrainian state and private firms, according to a source with knowledge of the matter.
The draft deal included mineral deposits in Ukraine and also infrastructure for the transit of natural gas, the source said.
The proposed deal, however, would not provide US security guarantees to Ukraine – a top priority for Kyiv – in its fight against Russian forces occupying some 20 per cent of its territory.
Ms Inna Sovsun, a Ukrainian MP, said she was grateful to Washington for the aid it has given, but said of the proposed minerals deal: “I do think that for us, as Ukrainians, it feels a little bit like another country is using our vulnerability, which was not created by us.”
Speaking before the memorandum was signed, she told Reuters: “It’s also critically important when we are designing the future to keep in mind that people will live here in the future.”
Ukraine has sizeable deposits of natural resources, including rare earths that are prized for use in electronics. It has deposits of graphite, lithium, titanium and uranium, among other minerals.
The path to a deal on minerals has been bumpy.
A previous iteration of the deal was ready for signing in February, when Mr Zelensky visited the White House to meet Mr Trump.
That, though, was shelved after their meeting turned acrimonious – and Washington also briefly paused intelligence sharing with Ukraine, which is vital in its effort to resist the Russian invasion.
Later, Kyiv launched an effort to salvage the relationship, and began talking to US officials again about cooperation on natural resources. REUTERS
