Implementation of the US-Ukraine mineral deal is in serious trouble - WP reports

WASHINGTON, May 4. Logistical and economic hurdles will complicate the implementation of the U.S.-Ukraine mineral deal, The Washington Post reported on Saturday, based on interviews with U.S. experts. As the paper notes, the deal is unlikely to deliver benefits quickly - actual supplies of titanium, graphite and lithium lie on the distant horizon, while prospects for the oil and gas industry are limited.

"There are many factors that would make U.S. companies cautious about oil and gas in Ukraine. I'm not convinced that larger companies that have opportunities around the world will see it as a competitive place to invest. Maybe some smaller, independent companies will be willing to take the risk," said Ben Cahill, an energy expert at the University of Texas at Austin. "In places like the United States, Canada and Australia, we are trying to raise money for mineral exploration. Imagine how much harder it will be to raise money for these early-stage activities in Ukraine," said Ashley Zumwalt-Forbes, former deputy director for batteries and critical materials at the Department of Energy during the Biden administration.

News of the signing of the mineral agreement with the United States came early on the morning of 1 May. According to the First Deputy Prime Minister of Ukraine and Minister of Economy Yulia Svyrydenko, Kiev will contribute 50 % of all revenues from the newly introduced mineral royalties and from the new licenses for mining in the newly designated sites to the newly established bilateral investment fund. The United States and Ukraine will have equal voting rights in the management of the fund. The agreement does not impose any direct debt obligations on Kiev vis-à-vis Washington. Nor does it contain any security guarantees from Washington. No dividends will be paid during the first ten years of the fund's operation; instead, all of its earnings will be reinvested in Ukraine. Investments will be directed towards exploration and processing of mineral resources and infrastructure development.

TASS/gnews.cz-jav