US-Ukraine Mineral Deal

US-Ukraine Mineral Deal is a bilateral agreement granting the United States access to Ukraine's critical mineral resources to bolster economic ties.

US-Ukraine Mineral Deal

US-Ukraine Mineral Deal Latest News 

U.S. President Donald Trump’s administration and Ukraine plan to sign the much-debated minerals deal following a disastrous Oval Office meeting.

About US-Ukraine Mineral Deal

  • The US-Ukraine Mineral Deal is a bilateral agreement aimed at providing the United States access to Ukraine’s vast mineral reserves, particularly critical raw materials.
  • The deal establishes a joint Reconstruction Investment Fund, managed equally by Kyiv and Washington, to support Ukraine’s post-war rebuilding efforts.
  • Ukraine will contribute 50% of future revenues from its state-owned mineral resources, oil, and gas to the fund, which will then be reinvested in projects within Ukraine.
  • The agreement aims to strengthen economic ties between the two nations and help the United States diversify its critical minerals supply chain, reducing dependence on China.
  • However, the deal does not include explicit security guarantees for Ukraine, focusing primarily on economic cooperation and resource development.

Ukraine Mineral Reserves

  • Ukraine possesses significant reserves of rare-earth minerals essential for various high-tech industries, including aerospace, defence, and renewable energy.
  • According to data from the Ukrainian geologic survey, Ukraine possesses 5% of the world’s mineral resources, including 23 of the 50 materials deemed critical by the U.S. government.

US-Ukraine Mineral Deal FAQs

Q1: What is the primary objective of the US-Ukraine mineral deal?

Ans: To invest in and develop Ukraine’s natural resources, aiding economic recovery and stability.

Q2: How will the Reconstruction Investment Fund operate?

Ans: Co-managed by the US and Ukraine, it will allocate 50% of future revenues from state-owned resources to fund reconstruction and growth.

Q3: What are the strategic benefits for both countries?

Ans: Ukraine gains economic recovery, energy security, and tech growth, while the US secures critical minerals and strengthens regional ties.

Source: HT

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