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Ukraine and the US have hit the agreement with the aggregate of mineral resources in the country by a “Fracorvemintment Investment Fund”.
the APPROVALDate of February 25 and first obtained in financial times, the more heavier and healing than the previous Washington suggestion.
An earlier reference to a possible $ 500bn of revenues from extraction of mineral fell. Nor has a clear US security guarantee of Ukrainian security that Kyiv wants in exchange for sharing income from precious natural resources.
While Ukrainian negotiators have made narrow the scope In agreement and keep some larger terms of the Trump administration, many important details have decided.
Where are the revenues from getting the mineral in Ukrainian?
Kyiv and Washington build a “combined investment fund” which Ukraine Pay 50 percent of all revenues obtained from the “future monetization” of natural resources owned by the Ukrainian government.
In theory, the fund will invest in the postwar in Ukraine and economic growth, potential across the sectors are not only natural resources.
Do we have any control over the US?
It has been owned and managed by US and Ukrainian governments but, should, additional details of ownership and administration have been handled at a later stage of a “Fund Agreement”. In the opening bid, the US pushes 100 percent ownership and full rights to make decisions.
However, the agreement says “maximum percentage of the prophecy of the fund” held by the US and “perform authority”. This can be because US agencies can face the limits of their participation in such funds.
For example, if it is the US Development Finance Corporation in charge of US interests in this fund, under existing Equity investments prepare any project.
Neither the US or Ukraine cannot sell any part of the fund without allowing others.
Can we invest in Ukraine or pay in the US?
It is also unclear and condemn fund agreement.
The deal says the fund will collect the profits and at least every year in Ukraine to improve the safety, security and prosperity of Ukraine “.
But it does not specify that all revenues are again and added that the following fund agreement “will provide for future distribution”.
What are Ukrainian resources covered by the agreement?
Ukraine has many deposits in critical minerals, including lithium, graphics, cobalt, titanium and some unique lands. It also has oil, gas and coal reserves. All of this is covered with the agreement – as long as they are owned “directly or indirectly” by the Ukrainian government – as well as the logistics companion.
However, deposits contributed to the tax government coffers, royalties or license fees are not covered by the agreement. That is not excluded by current operations in Ukrnafta and Naftogaz, state-owned and gas companies, which may be most useful in all Ukrainian taking industries.
Ukraine’s deposits have not suffered significant exploration or development – processes with many years even under stable jurisdictions. There is also a lack of quality data in reserves, which is important information for investors before charging millions of new mines. A large proportion of deposits contained in territory controlled by Russian forces.
Taking advantage of Critical Minerals in Ukraine will need more investments. Funds can, in theory, finance some of those, but it starts from zero unless the US actually puts the money in UPFront. It will also take years for projects that can provide tax tax.
Did Ukraine obtain security guarantees this request?
The US President Donald Trump is characterized the mineral deal as a way of getting “payback” for previous US help in Ukraine. He tumbles with a lot of income from the design, from $ 350bn to $ 500bn. Because of the difficulties commessual to commess these deposits, it is likely to provide only one side.
Trump’s administration argues that a presence of Ukrainian economic interests is sufficient to prevent future military aggression to Russia. President Volodymy Zelenskyy requested the Masegal Similar to the US military and US Security Assistance to the Agreement. He didn’t get them.
“It does not contain all security guarantees in Ukraine, but I want at least one sentence that deals with warranties – and there it is,” he said Wednesday.
Senior Ukrainian officials involved in negotiations speak FT that they are subjected to much pressure from the Trump administration to complete approval.
They hoped when Zelenskyy and Trump signed it on the White House on Friday, the door could be opened with additional talks about military talks and further guaranteed to push military push a part of the military president to end the US War.
Extra Report by Joseph Cotterill