Ukraine poised to sign minerals deal with US
A deal expected to be signed within 24 hours gives the United States preferential access to new Ukrainian natural resources deals but does not automatically hand the US a share of Ukraine’s mineral wealth or any of its gas infrastructure, according to a draft seen by Reuters.
The draft sets out the creation of a joint US-Ukrainian fund for reconstruction, which will receive 50 per cent of profits and royalties accruing to the Ukrainian state from new natural resources permits in Ukraine.
It says that any future US military assistance to Ukraine will count towards the US contribution to the joint fund.
However, the draft does not spell out how the joint fund’s revenues will be spent, who benefits or who controls decisions about the spending.
According to the draft, the United States, or other entities it designates, will get preferential – but not exclusive – access to new permits, licences and investment opportunities in the field of Ukrainian natural resources, according to the draft.
Existing deals are not covered.
Previous iterations of the deal during negotiations had said that it would include Ukrainian natural gas infrastructure, which is one of Ukraine’s most valuable assets, sources with knowledge of the matter said earlier this month.
Gas infrastructure is not covered by the draft seen by Reuters on Wednesday.
The previous iterations had also stated that the United States would control how the joint fund’s revenue was spent, and could therefore receive royalties and profits from Ukraine’s natural resources, the sources had previously said.
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However, this was absent from the draft deal seen by Reuters that was slated for signing on Wednesday.
Ukrainian Economy Minister Yulia Svyrydenko is in Washington DC for the final co-ordination of the agreement’s technical details, sources told the Associated Press.
The Ukrainian cabinet was expected to approve the agreement’s text on Wednesday, after which it will be signed by an authorised government representative.
The deal will then require ratification in the Ukrainian parliament before it can take effect.
