₴113 million from the state budget: Government allocates funds to prepare subsoil agreement with the US

A flag near the Government building. Illustrative photo: Depositphotos

The Cabinet of Ministers of Ukraine has allocated 113 million hryvnias from the state budget reserve fund for consulting services to prepare a draft agreement on cooperation with the United States in the field of mineral resources.

The relevant order was published on the government's website on 8 April.

The document states that the funds will be used to formulate Ukraine's negotiating position, taking into account the legislative specifics of both the Ukrainian and American sides. The agreement concerns the creation of the Investment Fund for Reconstruction.

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In particular, the Ministry of Economy will receive 59 million hryvnias, and the Ministry of Justice will receive 54 million hryvnias.

By 15 April, the ministries will engage professional consultants with experience in working with the Ukrainian government on public debt and external borrowing. They will also hire lawyers to assist in preparing negotiations on the deal.

As reported, this week Ukraine's team will travel to Washington to negotiate a deal that could give the US access to valuable mineral resources.

The framework agreement was not signed in February due to a dispute between the US and Ukrainian presidents, and the new project, which includes gas, oil, and strategically important minerals, has drawn criticism in Ukraine.

Ukraine-US minerals agreement

Earlier, Donald Trump said that he would like to conclude a deal under which Ukraine would supply the US with rare earth minerals needed for electronics production in exchange for US aid.

However, German Chancellor Olaf Scholz criticised Donald Trump's proposal to provide Ukraine with military assistance in exchange for its minerals.

Subsequently, US President Donald Trump said that Ukraine had agreed to provide Washington with access to rare earth minerals worth $500 billion.

It should be noted, however, that Ukrainian President Volodymyr Zelenskyy refused to sign the agreement on granting the US access to rare earth minerals. The White House called this decision «short-sighted».

Volodymyr Zelenskyy said that the United States might consider investing in mining on the Black Sea shelf, which is currently under Russian occupation.

US National Security Advisor Mike Volz called on Kyiv «to tone it down» and sign the mining agreement that President Zelenskyy had previously rejected.

Subsequently, the US President Donald Trump's administration sent Ukraine an updated version of the mining agreement, which took into account some of Kyiv's comments. The new draft US minerals agreement provides for the distribution of revenues from resources in the liberated territories of Ukraine.