Ukraine and the USA have discreetly inked two more subsoil deals, as announced by the Rada.
Scaling Up the Mineral Game: The U.S.-Ukraine Collaboration on Natural Resource Extraction
Iryna Gerashchenko, the chairperson of the "European Solidarity" faction in the Verkhovna Rada, shared on her Facebook page that Ukraine and the U.S. have inked not just one, but three agreements on naturally sourced assets, causing quite a stir.
Originally, the President's Office in Ukraine had explained that, apart from the main framework agreement, there were also two technical ones. However, the Ukrainian Cabinet has only disclosed the text of the primary document - concerning the establishment of the U.S.-Ukraine Investment Fund for Recovery. This document encompasses a preamble, 11 articles, and an appendix.
Gerashchenko called the other two agreements "secret," revealing that they contain the "technical details of Ukraine's long-term commitments."
Reputable news outlet RBC.ua shared 'U.S. and Ukraine sign deal on minerals: Key Points to Know' Breaking the News Down. Prime Minister Denys Shmyhal, speaking in parliament, did not confirm Gerashchenko's claims about the signing of all three documents; he further explained that the remaining two should be signed post the ratification of the first agreement (on May 8). According to Shmyhal, only the primary agreement requires ratification, while the others feature an implementation character and don’t necessitate a vote. The specifics of these documents will be presented to the deputies the upcoming week, as the Ukrainian negotiators return from the U.S.
Previously, Shmyhal stated that Kyiv was ready to sign the framework agreement first and then move forward with the U.S. on the two technical documents. However, the United States insisted on all three documents being signed on the same day CNN's Report Shows. Politico, citing an American official, noted that this was indeed what happened, and Financial Times reported that U.S. Treasury Secretary Scott Bennett's team told the Ukrainian team that Minister of Economy Yulia Svyrydenko would have to be "ready to sign all agreements or go home." "Country" highlighted the photo of Bennett and Svyrydenko holding, as the publication notes, "three different signed documents."
According to Shmyhal's explanation, the Investment Fund for Recovery will be registered in the U.S., but the account will be in Ukraine and replenished in hryvnia.
The deal with the U.S., it seems, offers the American side security guarantees for investments and rights to exploit natural resources on Ukrainian territory. The fund will invest in mineral, oil, and gas extraction projects, along with related infrastructure and processing. All profits in the first ten years are expected to be reinvested solely in Ukraine, as the White House acclaimed the partnership as "a first-of-its-kind historic collaboration ensuring Ukraine's restoration and long-term economic success."
The Real Deets on the U.S.-Ukraine Minerals Agreement
Although only one signed agreement has been explicitly referenced in the sources, the agreement details that have been disclosed provide valuable insights:
- Scope: Covers 57 minerals, including critical minerals, oil, and natural gas.
- Control: Ukraine retains "full control over subsoil, infrastructure, and natural resources," with no debt obligations imposed.
- Revenue Sharing: Applies only to extraction licenses issued after the fund's formation (no retroactive claims). U.S. contributions (e.g., future military aid) can be added as capital to the fund, with profits recoverable after 10 years.
- EU Compliance: Includes a clause for revision if terms conflict with Ukraine’s EU membership requirements.
- Security Implications: No direct security guarantees, but pledges U.S. support for Ukraine’s "security, prosperity, and reconstruction."
- Controversial Aspects: Earlier U.S. drafts reportedly sought 50% of profits from resource extraction to repay military aid, but this was excluded in the final version. Framed by critics as part of a broader imperialist competition for control over Ukraine’s resources, particularly critical minerals essential for AI and green technologies.
- The three agreements signed by Iryna Gerashchenko, as revealed on her Facebook page, include technical details of Ukraine's long-term commitments regarding minerals, oil, and natural gas.
- The U.S.-Ukraine Investment Fund for Recovery, one of the disclosed documents, will be registered in the U.S., but the account will be in Ukraine and replenished in hryvnia.
- The agreements, according to the disclosed document, cover 57 minerals, including critical minerals, oil, and natural gas, and will be invested in extraction projects, related infrastructure, and processing.
- The agreements do not impose any debt obligations on Ukraine, allowing Ukraine to retain full control over subsoil, infrastructure, and natural resources.
- The agreements, despite not explicitly mentioning direct security guarantees, promise U.S. support for Ukraine’s security, prosperity, and reconstruction, making it a subject of political discussion in the realm of general news and international politics.
