US government to invest $96 million in Ukraine’s minerals
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US President Donald Trump welcoming Ukrainian President Volodymyr Zelenskyy to the White House in August.
PHOTO: KENNY HOLSTON/NYTIMES
By Constant Meheut
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KYIV, Ukraine – The US government on Sept 17 pledged US$75 million (S$96 million) to kick-start a landmark deal to invest in Ukraine’s vast mineral reserves, a commitment that will ease fears in Kyiv that the Trump administration is walking away from the war-torn country.
When an agreement in spring
President Donald Trump has made it clear that he would no longer give US money to Ukraine for the war effort, leaving Kyiv scrambling to retain whatever American engagement it could.
Many observers doubted that the deal could draw US investment while the fighting continues. But the new American pledge and a matching commitment by the Ukrainian government will bring a fund created under the agreement to US$150 million.
The flow of US government money into Ukraine’s minerals, hydrocarbons and related infrastructure could help reassure private investors and attract badly needed capital to sustain the country’s war economy.
It also shows the new mercantile nature of the US-Ukrainian alliance under Mr Trump.
While the Biden administration spent tens of billions of dollars to aid Kyiv, Washington now focuses on opportunities to profit through investments and sales. It provides weapons to Ukraine only through purchases facilitated by a Nato-backed procurement system that uses European funds.
Aware of the US leader’s business-oriented mindset, Kyiv hopes to give Mr Trump a stake in Ukraine’s future through the mineral investment, especially as he has grown frustrated with his diplomatic efforts to end the war and has hinted at possibly stepping back.
The US investment “is a sign of trust and long-term commitment of our partners”, Ukrainian Prime Minister Yulia Svyrydenko said in a statement.
“American investments can be a guarantee of security both for Ukraine and for American business in Ukraine.”
The US$150 million investment announced on Sept 17 will provide the fund’s initial capital, but most of its future contributions are expected to come from Kyiv. Under the deal, half the revenues the Ukrainian government earns from extracting minerals and selling licences will flow into the fund.
Profits will then be reinvested in Ukraine’s economy, with the US also claiming a portion.
Mr Trump has portrayed the arrangement as repayment for past US aid. NYTIMES
