Ukraine and the US agree on the terms of a minerals agreement

Ukraine and the US have agreed on the terms of a subsoil deal. Photo: Nadra info

Ukraine and the United States have agreed on the terms of an agreement on rare earth metals. The updated agreement does not provide for full US ownership of the joint fund with Ukraine, but it lacks clear security guarantees.

This is stated in the text of the agreement of 24 February, which is available to the EP.

It is noted that the document will be signed by Ukrainian Foreign Minister Andrii Sybiha and US Secretary of State Marco Rubio. According to it, Ukraine and the United States will create a Reconstruction Investment Fund.

The updated version of the agreement excludes the clause that provided for full US control over the commercial fund. Now, the US side will own the maximum possible share allowed by its legislation, and the share of each country will be determined in accordance with actual contributions.

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The fund will be jointly managed, but the United States will have the right to make decisions under its own laws.

«The fund will be jointly managed, but the United States will have the authority to make decisions within the framework of its legislation. The agreement also prohibits Ukraine and the United States from selling or transferring their shares without the written consent of the other party,» the statement said.

It is reported that the fund will receive 50% of revenues from Ukrainian natural resources, ports and related infrastructure, including facilities indirectly owned by the Ukrainian government. The funds will be used for reinvestment in the country's economy.

At the same time, the fund's revenue sources will not include revenues that are already part of the state budget of Ukraine. Specific terms, amounts and stability of contributions will be defined in a future agreement.

The fund will have the right to decide whether to credit the actual costs of new projects or return them to the government of Ukraine. Contributions made to the fund will be reinvested in the country's economy at least once a year to promote security and prosperity. The future agreement will also define the mechanism for the distribution of funds.

In addition, the document excluded a provision that allowed for a 50% share of revenues from de-occupied facilities that were under Russian control at the time of the agreement.

«In addition, the new version of the agreement does not contain the part that would extend the contribution of Ukrainian revenues to the fund to $500 billion. Also, the part where all US financial assistance is added to the amount that Ukraine has to «put» into the fund has been removed,» the newspaper notes .

The US plans to make financial commitments to support Ukraine, but the specific amount will be determined separately. At the same time, the agreement lacks clear security guarantees, which Zelenskyy had previously stated.

«The fund agreement will try not to contradict Ukraine's other international commitments, as well as future integration into the EU or other associations. Ukraine and the United States commit to immediately begin drafting a separate agreement that will define the details of the future Fund. The Ministry of Economy will be responsible for drafting the future agreement on the part of Ukraine,» the publication reports.

Agreement on minerals between Ukraine and the United States

Earlier, Donald Trump said that he would like to conclude an agreement under which Ukraine would supply the United States with rare earth minerals needed for electronics production in exchange for American aid.

However, German Chancellor Olaf Scholz criticised Donald Trump's proposal to provide Ukraine with military assistance in exchange for its minerals.

Subsequently, US President Donald Trump said that Ukraine had agreed to provide Washington with access to rare earth minerals worth $500 billion.

It should be noted, however, that Ukrainian President Volodymyr Zelenskyy refused to sign the agreement on granting the US access to rare earth minerals. The White House called this decision «short-sighted».

Volodymyr Zelenskyy said that the United States might consider investing in mining on the Black Sea shelf, which is currently under Russian occupation.

US National Security Advisor Mike Volz called on Kyiv «to tone it down» and sign the mining agreement that President Zelenskyy had previously rejected.

Subsequently, the US President Donald Trump's administration sent Ukraine an updated version of the mining agreement, which took into account some of Kyiv's comments. The new draft US minerals agreement provides for the distribution of revenues from resources in the liberated territories of Ukraine.