What the US-Ukraine Mineral Deal actually means  

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**Ukraine and US Reach Deal on Natural Resources**

After weeks of , Ukraine and the US have agreed to jointly develop Ukraine’ natural resources. The deal is seen as improvement over earlier drafts, but it still needs to be finalized.

The agreement creates a reconstruction fund that will be managed by both countries. State-owned enterprises involved in mineral deposits, , gas, and hydrocarbons will contribute 50% of their future revenue to the fund. The money will then be invested in Ukraine at least annually to encourage foreign investment.

However, the deal is not yet concrete. There are still many questions about how the fund will work, such as its size, timeframe, and jurisdiction. tax also need to be changed to redirect cash flow from the state budget to the fund.

**What’s Next?**

The reconstruction fund could help funnel much-needed capital into Ukraine and open the up to US investors. However, questions remain about under what jurisdiction the fund will be registered, its size, and its timeframe.

Ukraine’s mining sector was hopeful that a deal with the US would bring American capital, technology, and innovation. But critical minerals have become less relevant now that oil and gas sectors are included in the agreement.

**Experts Weigh In**

Experts say that for any investment to happen, there needs to be a “long and lasting ” in Ukraine. Focusing on new deposits rather than current mines would be a positive step, as well as privatizing some of the mining companies.

The US is trying to peel Russia away from China’s grip, with State Secretary Marco Rubio saying can’t become Beijing’s “junior partner.” The agreement also notes that the US and Ukraine want to ensure that adversarial countries ‘t benefit from the reconstruction process after a peace agreement.

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