US-Ukraine minerals deal doesn’t specify if Washington will profit
Sign up now: Get ST's newsletters delivered to your inbox
An iron ore open-pit mine in Kryvyi Rih, Ukraine, on April 23.
PHOTO: REUTERS
LONDON - A deal expected to be signed later on April 30 gives the United States preferential access to new Ukrainian natural resources deals, but does not automatically hand Washington a share of Ukraine's mineral wealth or any of its gas infrastructure, according to a draft seen by Reuters.
The draft sets out the creation of a joint US-Ukrainian fund for reconstruction which will receive 50 per cent of profits and royalties accruing to the Ukrainian state from new natural resources permits in Ukraine.
It says that any future US military assistance to Ukraine will count towards the US contribution to the joint fund.
However, the draft does not spell out how the joint fund's revenues will be spent, who benefits, or who controls decisions about the spending.
According to the draft, the US, or other entities it designates, will get preferential - but not exclusive - access to new permits, licences and investment opportunities in the field of Ukrainian natural resources, according to the draft. Existing deals are not covered.
Previous iterations of the deal during negotiations had said that it would include Ukrainian natural gas infrastructure, which is one of Ukraine's most valuable assets, sources with knowledge of the matter said earlier this month.
Gas infrastructure is not cover by the draft seen by Reuters on April 30
The previous iterations had also stated that the US would control how the joint fund's revenue was spent, and could therefore receive royalties and profits from Ukraine's natural resources, the sources had previously said.
However, this was absent from the draft deal seen by Reuters that was slated for signing on April 30. REUTERS
