**U.S. and Ukraine Sign Landmark Minerals Agreement, Paving Way for Joint Investment Fund**
After months of tense negotiations, the United States and Ukraine have finally signed a long-awaited minerals agreement. The deal, signed on April 30, paves the way for further American support of Kyiv through a joint investment fund that will contribute to Ukraine’s reconstruction.
The agreement comes after a tumultuous period in which U.S. officials pushed for a swift deal, while Ukrainian President Volodymyr Zelensky insisted on including security guarantees and ensuring that any agreement wouldn’t be considered repayment for previous aid. The negotiations were even derailed by an Oval Office shouting match between U.S. President Donald Trump and President Zelensky in February.
**Ukraine Secures Key Concessions**
In a significant concession, Ukrainian officials have managed to secure the removal of any requirement for Kyiv to pay back the U.S. for previous military assistance. However, future aid will be counted towards the deal. While the current agreement does not contain security guarantees, Economy Minister Yuliia Svyrydenko hinted that new assistance, including air defense systems, may be provided.
The agreement establishes a joint investment fund between the U.S. International Development Finance Corporation and Ukraine’s Agency for Supporting Public-Private Partnership. The fund will be financed exclusively from new licenses, with 50% of revenues from critical materials, oil, and gas generated after the fund is created going towards it.
**Key Provisions**
The agreement provides a precise list of 57 mineral resources that the deal applies to, including strategic metals like uranium and lithium, rare earth elements, precious metals such as gold and platinum, oil, and natural gas. The list can be expanded only by mutual agreement between both parties.
Ukrainian authorities must require anyone with mining or infrastructure licenses to share investment opportunities with the American-Ukrainian fund. Other interested parties cannot be offered more favorable terms if the fund shows interest in any investment.
The agreement also requires compliance with Ukrainian and EU laws, without hindering Ukraine’s EU accession process. The U.S. has pledged not to impose restrictive trade tariffs on mineral products that the fund would buy from Ukraine.
**Ratification and Next Steps**
The agreement requires ratification by Ukraine’s parliament to come into effect. Opposition MP Yaroslav Zhelezniak believes the deal is “political” and just the first step towards further deals. He expects parliamentary sessions between May 13-15 to vote on the agreement, provided all procedures can be completed in time.
After ratification, two more parts of the mineral agreement will follow – a treaty between the DFC and the Agency from Ukraine, and a technical part. Several laws, including the Budget and Tax Codes, will also need to be amended.
**Commentary**
The signing of this minerals agreement marks an important milestone in U.S.-Ukraine relations. While it may not contain security guarantees, it paves the way for further American support and investment in Ukraine’s reconstruction.
The inclusion of key concessions, such as the removal of repayment requirements, demonstrates Ukrainian officials’ efforts to ensure that any agreement is fair and beneficial to their country. The agreement’s provisions, including compliance with EU laws and no restrictive trade tariffs, also indicate a commitment to transparency and cooperation.
As Yaroslav Zhelezniak noted, this deal may be just the first step towards further agreements. The ratification process and subsequent amendments to Ukrainian laws will be crucial in ensuring that the agreement is implemented effectively.
**Analysis**
The U.S.-Ukraine minerals agreement has significant implications for Ukraine’s reconstruction efforts. By establishing a joint investment fund, both parties can contribute to the country’s economic growth and development.
However, concerns remain about potential conflicts with earlier agreements, such as those signed between Ukraine and the EU in 2021. The newly signed deal requires compliance with Ukrainian and EU laws, without hindering Ukraine’s EU accession process.
Ultimately, the success of this agreement will depend on its implementation and ratification by Ukraine’s parliament. If successful, it may pave the way for further cooperation and investment between the U.S. and Ukraine, ultimately benefiting both parties.
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