Thu, 01 May 2025

Thu, 01 May 2025 US and Ukraine sign long-awaited natural resources deal

The White House has been pushing for the agreement as a prerequisite for further military assistance.

* The US and Ukraine have signed a deal allowing joint exploitation of Ukraine's energy and mineral resources.
* A Reconstruction Investment Fund will be established to spur Ukraine's economic recovery from the war with Russia.
* The fund is seen as essential for accessing US military aid, and recognizes the significant financial support the US has given Ukraine since 2022.
* Ukraine has vast reserves of critical minerals like graphite, titanium, and lithium, which are highly sought after due to their use in renewable energy, military applications, and industrial infrastructure.
* The deal is seen as a key component of the US strategy to reduce its dependence on Chinese rare earth imports.
* The partnership will be equal, with the US and Ukraine sharing a 50:50 stake in the resources.
* The deal was delayed after Ukraine sought to make last-minute changes, but ultimately both sides agreed to terms that would allow the US access to some of Ukraine's natural resources in exchange for future security assistance.
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