Ukraine signs historic rare earth minerals deal with Washington
ADVERTISEMENT
A Ukrainian official said on Wednesday that she had signed an agreement on behalf of the government that creates a US-Ukraine Reconstruction Investment Fund. The agreement aims to create an environment that promotes further economic growth for both countries.
"Together with the United States, we are creating the Fund that will attract global investment into our country," wrote Yulia Svyrydenko, First Deputy Prime Minister of Ukraine on X.
The deal has many variables, which Svyrydenko detailed in a lengthy thread of posts.
All resources in both land and sea in what's defined as Ukrainian territory will remain under Ukrainian control and ownership.
Kyiv also reserves the right to determine what and where to extract, stressing that the subsoil remains state property, a term enshrined in the deal.
The fund is to be created on a 50-50 basis and will be managed jointly by both Ukraine and the United States. Neither party is to have a majority vote, reflecting a true equal partnership based on mutual gain, cooperation and respect.
FILE - An ilmenite open pit mine is seen in a canyon in the central region of Kirovohrad, Ukraine, Feb. 12, 2025
Efrem Lukatsky/Copyright 2025 The AP. All rights reserved.
The agreement will not impose any changes in the classification of companies' legal registrations. State-owned companies like Ukrnafta and Energoatom are to remain state-owned.
The agreement makes no mention of any Ukrainian obligations to the United States. The implementation of the agreement will allow both countries to boost their economic potential through joint cooperation.
No interference with EU integration
The agreement complies with the Constitution of Ukraine and does not change the European integration course. The document is consistent with national legislation and does not contradict any of Ukraine's international obligations.
Kyiv is hopeful that the agreement will signal to other countries that Ukraine is a reliable global player and highlight its intent to cooperate with partners and pursue long-term deals for decades to come.
50% of funds from new licenses for projects in the field of critical materials and oil and gas, which will be transferred to the budget after the creation of the fund.
Income from projects already under way or budgeted revenues is not included in the fund.
The agreement also obliges Washington to help attract more investment and technology for Kyiv. The fund will be directly supported by the US government through its International Development Finance Corporation (DFC).
The DFC will help bring in new investment and technology from companies and funds in both the US and EU, and other countries that support Kyiv's fight against Moscow.
Technology was underscored as an important component of the deal, as Ukraine deems it important to secure not just capital, but also innovation.
ADVERTISEMENT
Fund's generated income not to be taxed
The Fund's income and contributions will not be taxed in either the US or Ukraine, so that investments yield the greatest possible results for both parties.
Both countries will be equally contributing to the fund. Svyrydenko says that, in addition to direct funds, Washington can choose to provide further support in the form of weapons, such as air defence systems.
Kyiv will also do its part and reciprocate beyond the agreed-upon 50% of revenues generated from new rents and licenses, if deemed necessary.
The joint fund will then invest the capital in mineral and natural resource projects, as well as other related infrastructure.
ADVERTISEMENT
The specific investment projects are to be decided on jointly by Ukraine and the US. The deal, however, stipulates that such investments are to be made exclusively in Ukraine.
US Treasury Secretary Scott Bessent said in a video posted to X that 'this partnership allows the United States to invest alongside Ukraine, to unlock Ukraine's growth assets, mobilise American talent, capital and governance standards that will improve Ukraine's investment climate and accelerate Ukraine's economic recovery.'
Both countries say the agreement is designed to be a long-term joint investment, planned to last for decades.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
3 hours ago
- Euronews
Macron says France will ban social media for under-15s if EU does not
President Emmanuel Macron said on Tuesday that France will ban access to social media for children under the age of 15 within "a few months" if this is not done at a European level. "We must ban social media for those under 15," Macron told the public television channel France 2 after a school staff member was stabbed by a 14-year-old student at the entrance to a secondary school in Nogent. "I'm giving us a few months to get the European mobilisation going. start doing it in France. We can't wait," he said. A pupil fatally stabbed a school staff member during a routine bag check at the middle school in eastern France, officials said. The teenager was arrested at the scene. A police officer assisting with the bag checks sustained minor injuries while apprehending the suspect, who used the same knife in both attacks, according to the National Gendarmerie. It's not immediately clear whether the attack was linked to anything the student had seen on social media, or why local media had made the link. This is a developing story and our journalists are working on further updates. The EU is planning to borrow €150 billion on the financial markets for its new lending instrument Security Action for Europe (SAFE). It is one of the pillars of the Readiness 2030 plan, which aims to mobilise €800 billion for defence investment by the end of the decade. "Russia's war in Ukraine and the EU's attempt to support Kyiv really highlighted the dependencies and shortcomings of the EU's defence industrial base and how ill-prepared we were in the event of being forced into a conventional war," said Alice Tidey, a Euronews reporter who covered the announcement. "SAFE is about firing up European weapons manufacturing lines by getting member states to buy strategically and together so that the industry becomes less fragmented and quicker to produce, and our armies, more crucially, become more interoperable. And of course, also, it's about putting prices down," she added. The investments should boost production and procurement of air and missile defence, artillery systems, missiles and ammunition, as well as other crucial military equipment to deal with security threats, including critical infrastructure protection and cyber, artificial intelligence and electronic warfare. "It gives countries the possibility to find money to buy military equipment. It's a beginning and I think it's very good sign," said German MEP Marie-Agnes Strack-Zimmermann from the Renew group. The parliamentarian who chairs the European Parliament's Security and Defense Committee also highlighted that some of the technology could have dual use and be useful for civilian purposes. Euronews spoke to residents in Rome and opinions were divided. 'We need to defend ourselves and the threat is at our doorstep,' said one . 'They shouldn't increase spending for a war that won't happen. This is not our war,' said another resident in the Italian capital, referring to Russia's invasion of Ukraine. In Berlin, the same divisions were evident: 'If the aim is to start another arms race, then I'm not in favour,' said one resident of the German city. 'I'm all for a joint European defence effort, but without going into debt,' said another. Governments will have to repay over 45 years and they can also activate the Stability and Growth Pact's National Escape Clause, which stipulates that budget deficits cannot exceed 3% of GDP. Under SAFE, governments can exceed this figure by 1.5% per year, provided that the amount is spent solely on defence. More than half of member states have requested activation from the European Commission. To receive loans, governments must meet certain conditions: 65% of the value of each piece of military equipment must be produced in one of the 27 EU member states, Ukraine and the European Free Trade Association (EFTA) members Iceland, Liechtenstein and Norway. The remaining 35% can also come from any third country in the world. The common procurement can include EU candidate countries, such as the Western Balkans, and third countries with bilateral security and defence partnerships, such as Japan, South Korea and the United Kingdom. However, the EU remains highly dependent on weapons purchased from the US and the increased investment could be a clear indication of the bloc's commitment to becoming more autonomous, something that President Donald Trump has demanded in the framework of NATO. "I'm optimistic that the President of the US will realise what we are now starting to do," said Strack-Zimmermann. The EU is planning to raise more funds, with the European Commission proposing to use part of the Cohesion Funds, which are intended for regional development. The European Investment Bank will also try to mobilise private funds for this area for the first time. Watch the video here! Journalist: Isabel Marques da Silva Content production: Pilar Montero López Video production: Zacharia Vigneron Graphism: Loredana Dumitru Editorial coordination: Ana Lázaro Bosch and Jeremy Fleming-Jones
Euronews
3 hours ago
- Euronews
Is debt justified to increase defence investments?
President Emmanuel Macron said on Tuesday that France will ban access to social media for children under the age of 15 within "a few months" if this is not done at a European level. "We must ban social media for those under 15," Macron told the public television channel France 2 after a school staff member was stabbed by a 14-year-old student at the entrance to a secondary school in Nogent. "I'm giving us a few months to get the European mobilisation going. start doing it in France. We can't wait," he said. A pupil fatally stabbed a school staff member during a routine bag check at the middle school in eastern France, officials said. The teenager was arrested at the scene. A police officer assisting with the bag checks sustained minor injuries while apprehending the suspect, who used the same knife in both attacks, according to the National Gendarmerie. It's not immediately clear whether the attack was linked to anything the student had seen on social media, or why local media had made the link. This is a developing story and our journalists are working on further updates. The EU is planning to borrow €150 billion on the financial markets for its new lending instrument Security Action for Europe (SAFE). It is one of the pillars of the Readiness 2030 plan, which aims to mobilise €800 billion for defence investment by the end of the decade. "Russia's war in Ukraine and the EU's attempt to support Kyiv really highlighted the dependencies and shortcomings of the EU's defence industrial base and how ill-prepared we were in the event of being forced into a conventional war," said Alice Tidey, a Euronews reporter who covered the announcement. "SAFE is about firing up European weapons manufacturing lines by getting member states to buy strategically and together so that the industry becomes less fragmented and quicker to produce, and our armies, more crucially, become more interoperable. And of course, also, it's about putting prices down," she added. The investments should boost production and procurement of air and missile defence, artillery systems, missiles and ammunition, as well as other crucial military equipment to deal with security threats, including critical infrastructure protection and cyber, artificial intelligence and electronic warfare. "It gives countries the possibility to find money to buy military equipment. It's a beginning and I think it's very good sign," said German MEP Marie-Agnes Strack-Zimmermann from the Renew group. The parliamentarian who chairs the European Parliament's Security and Defense Committee also highlighted that some of the technology could have dual use and be useful for civilian purposes. Euronews spoke to residents in Rome and opinions were divided. 'We need to defend ourselves and the threat is at our doorstep,' said one . 'They shouldn't increase spending for a war that won't happen. This is not our war,' said another resident in the Italian capital, referring to Russia's invasion of Ukraine. In Berlin, the same divisions were evident: 'If the aim is to start another arms race, then I'm not in favour,' said one resident of the German city. 'I'm all for a joint European defence effort, but without going into debt,' said another. Governments will have to repay over 45 years and they can also activate the Stability and Growth Pact's National Escape Clause, which stipulates that budget deficits cannot exceed 3% of GDP. Under SAFE, governments can exceed this figure by 1.5% per year, provided that the amount is spent solely on defence. More than half of member states have requested activation from the European Commission. To receive loans, governments must meet certain conditions: 65% of the value of each piece of military equipment must be produced in one of the 27 EU member states, Ukraine and the European Free Trade Association (EFTA) members Iceland, Liechtenstein and Norway. The remaining 35% can also come from any third country in the world. The common procurement can include EU candidate countries, such as the Western Balkans, and third countries with bilateral security and defence partnerships, such as Japan, South Korea and the United Kingdom. However, the EU remains highly dependent on weapons purchased from the US and the increased investment could be a clear indication of the bloc's commitment to becoming more autonomous, something that President Donald Trump has demanded in the framework of NATO. "I'm optimistic that the President of the US will realise what we are now starting to do," said Strack-Zimmermann. The EU is planning to raise more funds, with the European Commission proposing to use part of the Cohesion Funds, which are intended for regional development. The European Investment Bank will also try to mobilise private funds for this area for the first time. Watch the video here! Journalist: Isabel Marques da Silva Content production: Pilar Montero López Video production: Zacharia Vigneron Graphism: Loredana Dumitru Editorial coordination: Ana Lázaro Bosch and Jeremy Fleming-Jones A second group of Ukrainian and Russian prisoners of war were returned home on Tuesday as part of a deal made during direct talks in Istanbul on 2 June. The exchange began on Monday for soldiers aged between 18-25, focusing on seriously wounded and sick Ukrainian service personnel, President Volodymyr Zelenskyy said on Telegram, without specifying the exact number. Among them were soldiers captured over three years ago in the battle for Mariupol, the Coordination Headquarters for the Treatment of Prisoners of War said on Telegram. All of those freed had severe injuries and illnesses, including amputated limbs and vision problems, it said. Amina Ivanchenko was reunited Monday with her husband, a POW for 18 months, in the initial release. She said was grateful to Ukrainian officials for supporting her. "My struggle was much easier thanks to them. Our country will definitely return everyone. Glory to Ukraine! Thank you!" Anastasia Nahorna waited in the Chernyhiv region to see if her husband, who has been missing for eight months, was among those being released in the latest swap. "This pain is more unbearable every day," she said. "I really want to hear some news, because since the moment of his disappearance, unfortunately, there has been no information. Is he alive? or maybe in captivity? Has someone seen him?" Russia's Defence Ministry said it had also received a second group of released soldiers as part of the deal. The Russian servicemen arrived on the territory of Belarus, where they are receiving psychological and medical assistance, the ministry said in a statement, without specifying the number of exchanged soldiers. All servicemen will be transported to Russia for further treatment and rehabilitation, the statement added. A similar exchange was announced for the bodies of fallen soldiers held by both sides, although no schedule has been released. Two recent rounds of direct peace talks between Russian and Ukrainian delegations in Istanbul have yielded no significant breakthroughs beyond pledges to swap prisoners as well as thousands of their dead and seriously wounded troops.
France 24
3 hours ago
- France 24
US intel chief denounces 'warmongers' after Hiroshima visit
Gabbard did not specify her concerns, but Russian President Vladimir Putin has repeatedly brandished the specter of nuclear war as he cautions Europe and the United States against support for Ukraine. Gabbard, a former congresswoman who has faced criticism in the past for her views on Russia, posted a video of grisly footage from the world's first nuclear attack and of her staring reflectively at the Hiroshima Peace Memorial. On August 6, 1945, the United States obliterated Hiroshima, killing 140,000 in the explosion and by the end of the year from the uranium bomb's effects. Three days later, a US plane dropped a plutonium bomb on Nagasaki, leaving around 74,000 people dead by the end of the year. Japan surrendered on August 15. "This one bomb that caused so much destruction in Hiroshima was tiny compared to today's nuclear bombs," Gabbard said. "A single nuclear weapon today could kill millions in just minutes." "As we stand here today closer to the brink of nuclear annihilation than ever before, political elites and warmongers are carelessly fomenting fear and tensions between nuclear powers," she said. "Perhaps it's because they are confident that they will have access to nuclear shelters for themselves and for their families that regular people won't have access to." Taking a tone more customary for a politician or activist than the director of national intelligence, Gabbard said: "So it's up to us, the people, to speak up and demand an end to this madness." Gabbard's remarks come as aides to President Donald Trump voice growing frustration with Putin, who has refused US-led, Ukraine-backed calls for a temporary ceasefire. Secretary of State Marco Rubio, whom Gabbard criticized before the two entered President Donald Trump's cabinet, has warned that the United States could walk away from diplomacy over the Ukraine conflict if there are no positive signs. Gabbard, a former Democrat, faced a heated confirmation hearing but ultimately prevailed after Democrats and some Republicans questioned her past statements, including some supportive of Russian positions. She has said that the European Union and Washington should have listened to Russian security concerns about Ukraine joining NATO. Gabbard's visit to Hiroshima comes ahead of the 80th anniversary of the world's only atomic bombings. The United States has never apologized for the attacks.
