After some last-minute hiccups which threatened to derail it, the US and Ukraine have finally signed the much-anticipated and controversial minerals deal.
“The deal will grant the US privileged access to new investment projects to develop Ukraine’s natural resources including aluminum, graphite, oil and natural gas,” the breaking Bloomberg note says.
Treasury Secretary Scott Bessent and Ukrainian Deputy Prime Minister Yulia Svyrydenko signed it late in the day Wednesday in Washington, after the US side demanded that all aspects on the table be agreed to by Kiev. Below are some known details of the landmark agreement via Axios:
- The government-to-government agreement would establish a joint fund, with each country contributing 50% of the financing and future U.S. military assistance to Ukraine counting as a contribution to the fund.
- The fund will be governed jointly and will have three U.S. members and three Ukrainian members on its board.
- The money in the fund will be used for investments in the extraction of Ukraine’s rare earth minerals, oil and gas. The revenue will be split 50/50.
- Kachka said the agreement gives the U.S. preferential access to investments in any operator that extracts rare earths in Ukraine and the first right of refusal for such investments.