Ukraine-US minerals fund seals first critical minerals deal
First minerals deal signed (photo: Getty Images)
The United States-Ukraine Reconstruction Investment Fund has signed its first deal for the extraction of critical minerals, Reuters reports.
According to Conor Coleman, head of investments at the US International Development Finance Corporation (DFC), the fund will initially focus on early-stage mining projects.
Rare earth elements, uranium, beryllium, and zirconium deposits have been identified as immediate and strategic targets.
He stressed that all these resources are on the US list of critical minerals, fully aligning with the priorities of the US administration. The investments are also intended to demonstrate Washington's support for Kyiv in its ongoing war against Russia.
"It's absolutely imperative for the Ukrainian people that we're investing now," Coleman stressed.
Strengthening the energy system
Two other new projects are aimed at strengthening Ukraine's electricity and heating networks following intensified Russian attacks on key infrastructure.
These initiatives will complement a nearly $100 million loan that the DFC has agreed to provide to energy company DTEK.
The funds will go toward a new battery storage system that will provide backup power to about 600,000 Ukrainian homes for up to two hours. The project will also have access to capital in the event of losses.
In addition, the fund will acquire an equity stake in a cogeneration platform for producing heat and electricity. It is designed to develop and operate a network of "energy hubs" intended to restore damaged household heating and electricity systems.
What is known about the fund
The joint investment fund was established under the minerals agreement signed by the two countries in April last year at the initiative of US President Donald Trump.
The fund focuses on five strategic sectors, including mineral extraction, defense, energy, infrastructure, and related industries. The organization is currently actively seeking additional funding to expand its investment capacity.
US-Ukraine minerals agreement
In April last year, Ukraine and the US signed an agreement establishing the United States-Ukraine Reconstruction Investment Fund. The document is also known as the rare earths or critical minerals agreement.
The agreement provides for joint investment in the development of Ukrainian deposits of strategic resources, including lithium, titanium, graphite, uranium, as well as oil and natural gas.
At the same time, ownership of Ukraine's mineral resources and natural resources remains with Ukraine. The fund operates on the principles of an equal partnership between the two countries.
Under the agreement, Ukraine contributes to the fund a portion of revenues from new licenses and royalty payments for the use of designated natural resources.
Trump recently recalled that the US has a rare earths agreement with Ukraine. According to him, the agreement gives the US the right to take whatever the US wants at any time.
