US, Ukraine to scout for minerals deal investment projects
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An open-pit iron ore mine in Kryvyi Rih, Ukraine.
PHOTO: REUTERS
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- Ukraine and the US are collaborating on mineral projects to boost Ukraine's economy, with US investment in exchange for access to resources.
- Site visits are underway to identify three pilot investment projects within 18 months in minerals, energy, and infrastructure sectors.
- US support aims to rebuild Ukraine’s war-impacted economy while securing continued defence aid, with shared revenue from mineral extraction.
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KYIV - Ukrainian officials and a team from the US International Development Finance Corporation will carry out site visits to identify investment projects as part of Kyiv’s minerals deal with Washington, Ukraine’s economy minister said on Sept 13.
Ukraine and the US signed the deal,
The agreement is seen by Kyiv as a way of securing US financial help to revive its economy and infrastructure - both battered by the war ignited by Russia’s 2022 full-scale invasion - while ensuring continued US support for Ukraine’s defence.
Ukraine’s Economy Minister Oleksiy Sobolev said the government was committed to advancing quickly to carry out the agreement and wanted to identify three pilot investment projects within the next 18 months.
“Right now, there are site visits... from the US, and we are going to the regions tomorrow with them to look for an investment pipeline,” Mr Sobolev told a conference attended by Ukrainian, US and European officials in Kyiv.
The US has been Ukraine’s single largest military donor as it battles Russian forces. But since his return to the White House this year, Mr Trump has argued the US should get something back for its aid to Kyiv.
Half the revenues the Ukrainian government earns from new mineral extraction under the deal would go to a joint investment fund with profits split between Kyiv and Washington.
Mr Sobolev said that in addition to the minerals sector, where projects can be capital intensive with long implementation lead times, the US-Ukraine fund would also invest in the energy sector and infrastructure.
Ukraine has deposits of 22 of the 34 minerals considered critical by the European Union for industries such as defence, high-tech appliances, and green energy. It also possesses ferro alloys needed by the steel industry, non-ferrous metals used in construction, and some precious metals and rare earth elements. REUTERS
