US-Ukraine minerals deal: what we know | Singapore Breaking News & Latest Updates

US-Ukraine minerals deal: what we know — World FILE PHOTO: U.S. Treasury Secretary Scott Bessent and Ukrainian First Deputy Prime Minister Yulia Svyrydenko pose after signing a deal that will...

World

FILE PHOTO: U.S. Treasury Secretary Scott Bessent and Ukrainian First Deputy Prime Minister Yulia Svyrydenko pose after signing a deal that will give the United States preferential access to new Ukrainian minerals deals and fund investment in Ukraine's reconstruction, in Washington, D.C., U.S., April 30, 2025, in this picture obtained from social media. Yulia Svyrydenko via Facebook/via REUTERS/File photo

Under the terms of the deal announced on Wednesday,Ukraine and the United Stateswill establish a joint Reconstruction Investment Fund.The fund will be controlled by a company with "equal representation of three Ukrainian and three American board members," the US Treasury Department said in a statement.The agreement covers 57 types of resources, including oil and gas.If the United States decides to buy the resources, they will be given "first choice to either acquire them or designate the purchaser of our choice," the Treasury Department said.The new fund "will receive 50 per cent of royalties, license fees, and other similar payments from natural resource projects in Ukraine," according to the US Treasury.Its profits will be invested exclusively in Ukraine for the first 10 years, after which profits "may be distributed between the partners," Kyiv said.

Ukraine holds about five per cent of the world's mineral resources and rare earths, according to various estimates.But work has not yet started on tapping many of the resources, and a number of sites are in territory now controlled by Russian forces.Ukraine also has around 20 per cent of the world's graphite, an essential material for electric batteries, according to France's Bureau of Geological and Mining Research, and is a major producer of manganese and titanium.It also says it possesses one of the largest lithium deposits in Europe, which is yet to be extracted.Kyiv says "rare earth metals are known to exist in six deposits" and an investment of US$300 million would be needed to develop a deposit at Novopoltavske, which it claimed was one of the world's largest.

Trump demanded compensation for US aid given to Ukraine under his predecessor Joe Biden's administration.But under the terms of the deal signed this week, Ukraine will not be asked to pay back the billions of dollars it has received from the United States since Russia invaded the country in February 2022.New military aid from Washington will be counted as its contribution to the fund, according to the text of the agreement.Ukraine said it will maintain full control over its subsoil, infrastructure and natural resources throughout the process.Kyiv noted that the agreement does not impact its bid for integration with the European Union.

Ukraine has said any deal would need to include long-term and robust security guarantees that would deter Russia from attacking again.But the text does not place any specific security obligations on the United States.It simply says that the United States "supports Ukraine's efforts to obtain the security assurances necessary to build a lasting peace."However, a US Treasury statement notably mentioned Russia's "full-scale invasion" of Ukraine - diverging from the Trump administration's usual formulation of a "conflict" for which Kyiv bears a large degree of responsibility."This is win-win for both sides," US Treasury Secretary Scott Bessent told Fox Business on Thursday."I think this is a strong signal to the Russian leadership," he said.

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