The US-Ukraine minerals deal has sparked fears among some Ukrainians due to its potential impact on the country’s autonomy and independence. The deal allows Ukraine to create a joint fund with the US, which will receive revenue from new licenses for natural resources. However, this could reduce potential revenues for the Ukrainian budget and limit the country’s ability to choose the best commercial terms and partners for investments.
The opposition MP Yaroslav Zhelezniak has raised several concerns about the deal, including its potential impact on Ukraine’s financial independence and security guarantees. The deal still needs to be ratified by parliament and adjusted to accommodate changes in tax and budget codes.
One of the biggest questions is whether this deal will actually attract additional investment to Ukraine’s energy and mining sectors. Investment in Ukraine has plummeted since Russia invaded Crimea, and it remains unclear how the Trump administration will encourage America’s private sector to invest in Ukrainian projects.
Edward Chow, a non-resident senior associate at the Center for Strategic and International Studies, has expressed skepticism about the deal’s potential impact on investment. He notes that the agreement does not include provisions like providing risk insurance at a reasonable price, which could attract investors.
The additional details in further agreements would have to address concerns from the business side before significant investment occurs. The deal still needs to be ratified by parliament and adjusted to accommodate changes in tax and budget codes.
Overall, while the US-Ukraine minerals deal may seem like a good thing on the surface, it has sparked fears among some Ukrainians due to its potential impact on the country’s autonomy and independence.
