**Ukraine Seeks US Investment in Strategic Energy Projects**
In a bid to boost its economy and energy security, Ukraine has submitted several key projects to the United States for consideration as part of a landmark profit-sharing deal. According to an interview with Economy Minister Yuliia Svyrydenko published on July 7 by the Kyiv Independent, the country is pitching an offshore gas exploration project and a plan to modernize its largest oil refinery in Kremenchuk.
The projects are being submitted as part of the “minerals deal” between Ukraine and the US, which focuses on critical minerals but has since expanded to include oil and gas, infrastructure, and defense. The deal aims to create an investment fund that could finance various projects in these sectors.
One of the proposed projects is the development of a lithium deposit in Dobra, in Ukraine’s Kirovohrad Oblast, which was recently announced as the fund’s pilot project. Another project involves exploring offshore gas resources, in collaboration with state-owned oil and gas giant Naftogaz.
However, the most significant proposal is the plan to modernize the Kremenchuk oil refinery, owned and operated by Ukraine’s largest oil company, Ukrnafta. Svyrydenko described this project as “strategic and extremely important” due to its massive domestic market for petroleum products. The estimated cost of the project is $2.7 billion.
**Russian Attacks and Air Defense Concerns**
The Kremenchuk oil refinery has been a frequent target of Russian missile and drone attacks, highlighting the need for air defense systems to protect not only Ukraine’s energy infrastructure but also its citizens. When asked about potential discussions with the US regarding air defenses if the project were to move forward, Svyrydenko noted that while there are currently no plans to discuss air defense as part of this project, U.S. companies participating in the project implementation could advocate for air defense systems.
This comes at a time when the US has paused some promised air defense and weapons shipments to Ukraine due to concerns about depleting American stockpiles. However, Ukrainian President Volodymyr Zelensky has emphasized the urgent need for additional air defenses to protect businesses and cities.
**Implications and Next Steps**
Kyiv hopes to implement the first three projects under the agreement over the next 18 months and plans to hold the fund’s first official meeting at the end of July in Kyiv. Svyrydenko believes that having US investment in Ukraine creates a strong motivation for the US to protect those assets, emphasizing the importance of U.S. companies being present in the country.
The successful implementation of these projects could have significant implications for Ukraine’s energy security and economy, demonstrating the potential for cooperation between Kyiv and Washington in the face of ongoing hostilities with Russia.
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