Mineral deal: Ukraine and U.S. plan to launch three mining projects within 18 months — Svyrydenko
Ukraine and the United States plan to launch the first three
mineral extraction projects within 18 months under their newly signed
subsurface resources agreement, Prime Minister Yuliia Svyrydenko said
on Aug. 5.
She said she had a “substantive” conversation with U.S.
Treasury Secretary Scott Bessent.
Svyrydenko noted that the two discussed the launch of the
U.S.-Ukraine Reconstruction Investment Fund.
According to her, the first meeting of the fund’s board of
directors is scheduled for September.
“We’re working to expand its mandate so that the fund can
also invest in the defense sector… The goal is to launch the first three
projects within 18 months,” the prime minister said.
On April 30, the United States and Ukraine signed an
agreement to establish a 50/50 co-funded recovery investment fund. The deal,
composed of 12 articles, covers a list of critical materials, oil, and gas.
Ukraine is represented in the fund by the PPP Agency under the Economy
Ministry; the U.S. side is represented by the International Development Finance
Corporation (DFC). Ukraine’s parliament ratified the agreement on May 8.
Ukraine’s initial contribution to the fund will amount to
50% of the revenue from licenses and royalties from mineral extraction.
However, the DFC will provide the first installment to launch the fund.
In July, the DFC issued a request for information (RFI) to
select a company to manage the fund. All investment decisions will be made by
the fund’s governing board, which will include three managers from each
country, and the fund’s operations will be coordinated by four committees.
The DFC will have priority access to investments, but not
exclusivity. It will be allowed to bring in co-investors from the United
States, while projects may also engage with other investors.
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