Cabinet of Ministers approves agreement between Ukraine and the US on minerals

The Cabinet of Ministers approved the agreement between Ukraine and the United States on a joint Investment Fund for Reconstruction through Subsoil, Photo: Nadra Info

The Cabinet of Ministers has approved the decision to sign an agreement between Ukraine and the United States on mining.

This was announced by Prime Minister Denys Shmyhal.

He noted that the agreement will have six key points:

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• First, Ukraine and the United States are establishing a Reconstruction Investment Fund, which will be jointly owned and jointly managed by the governments of both our countries.
• Secondly, Ukrainian subsoil and resources remain Ukrainian, they are not transferred to the US or anyone else.
• Third, Ukraine will contribute 50% of future revenues from its natural resource assets to the Fund.
• Fourthly, the United States will contribute to the Fund in the form of funds, financial instruments and other assets critical to Ukraine's reconstruction.
• Fifthly, the money collected by the Fund will be invested exclusively in Ukraine's reconstruction projects. In fact, it is a Fund for future generations of Ukrainians.
• Sixth, the agreement takes into account Ukraine's commitments within the European integration process.

Agreement on minerals between Ukraine and the United States

Earlier, Donald Trump said that he would like to conclude an agreement 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 an agreement to grant 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.