Latest news with #WeBuildUkraine
Zawya
05-05-2025
- Business
- Zawya
US-Ukraine deal is heavy on symbolism, light on minerals: Andy Home
LONDON - U.S President Donald Trump's minerals deal with Ukraine is a big symbolic win for both sides. Ukraine gets a long-term commitment for U.S. investment in "a free, sovereign, and secure Ukraine". The United States gets a stake in Ukraine's future resource potential. And Trump gets to prove that he is, to quote White House spokeswoman Karoline Leavitt, "the great deal maker". Just don't expect a Ukrainian critical minerals rush soon. Yulia Svyrydenko, Ukraine's deputy prime minister, posted on X that she does not expect the jointly-owned Reconstruction Investment Fund to pay out any dividends in the first 10 years. DON'T MENTION THE RARE EARTHS At least everyone has stopped calling it the rare earths deal. The agreement covers all sub-soil resources, including oil, gas and a wide spectrum of metals. Ukraine has a couple of rare earth deposits, which is not surprising given the size of the country and that rare earths are not as rare as their name suggests. Deposits that are viable economically and technically are relatively unusual and how promising Ukraine's are is unclear. Even the best-mapped Novopoltavske field was last surveyed in 1982-1991. It is also inconveniently located just north of Chernihiv in Zaporizhzhia province, which is the wrong side of the front line from a Ukrainian point of view. So are two of the touted lithium projects. Indeed, about 40% of Ukraine's metal resources are under Russian occupation, according to estimates by Ukrainian think tanks We Build Ukraine and the National Institute of Strategic Studies. Unlocking the full value of the minerals deal will be impossible without a definitive peace and reconciliation of Ukraine's and Russia's competing territorial claims. LONG ROAD FROM MINE TO MARKET Ukraine has other lithium deposits and also hosts reserves of critical minerals such as uranium, titanium and graphite. But since existing production facilities are not included in the deal and many have been closed since the start of the war anyway, Ukraine will be building a minerals production chain from scratch. That is a long journey. The challenge with many of the metals on everyone's critical raw materials list is not getting them out of the ground, although that can be capital-intensive enough, but in refining them into high-purity products ready for the manufacturing process. Rare earths' separation and processing is notoriously tricky and dominated by Chinese operators, which is another reason why no-one's calling it the rare earths deal any more. Mined uranium also needs to be enriched before it can be fed into a nuclear power plant and titanium ore needs to be processed into aviation-grade alloy before it can be used to build aircraft. It's an inconvenient truth that Russia is one of the world's largest titanium processors and accounted for 27% of the enriched uranium supplied to U.S. commercial reactors in 2023. Russia, however, is explicitly excluded from benefiting from the reconstruction of Ukraine. PRICE PROTECTION Market price is another problem. Ukraine's graphite deposits are both on the right side of the front line and relatively well mapped. The Balakhivske project is at the feasibility study stage, according to the Ukrainian Geological Survey. There is a ready European market for the material needed for the anode in electric vehicle batteries. But will mining it in Ukraine be economically viable? Canadian miner Northern Graphite, the only producer in North America, has announced it is putting its Quebec plant on care and maintenance due to a 50% collapse in the graphite price. China controls 70% of the global supply chain and can exert huge influence over pricing, in this case flooding the market to undermine potential competitors. The West's lithium ambitions are being similarly stymied by Chinese over-supply and rock-bottom market prices. Ukraine will find that private investment will need government help to shield start-ups from price turbulence. The United States has already understood the need for direct federal action. The Department of Defense is a strategic investor in a domestic rare earths processing project being led by Australia's Lynas Rare Earths. STAKING THE METALLIC FUTURE This minerals deal is clearly going to come with a long repayment schedule. But it is a sign of the times. As the world transitions from a fossil fuel economy to a metallic future, minerals have become the new geopolitical currency. In this new world order China is the dominant incumbent and the West the challenger. The United States has just made a strategic move in the great global minerals game. It will not be the last. Next up is the Democratic Republic of Congo, where another minerals-for-security deal is on the table. The opinions expressed here are those of the author, a columnist for Reuters. (Editing by Barbara Lewis)
Reuters
02-05-2025
- Business
- Reuters
US-Ukraine deal is heavy on symbolism, light on minerals
LONDON, May 2 (Reuters) - U.S President Donald Trump's minerals deal with Ukraine is a big symbolic win for both sides. Ukraine gets a long-term commitment for U.S. investment in "a free, sovereign, and secure Ukraine". The United States gets a stake in Ukraine's future resource potential. And Trump gets to prove that he is, to quote White House spokeswoman Karoline Leavitt, "the great deal maker". Just don't expect a Ukrainian critical minerals rush soon. Yulia Svyrydenko, Ukraine's deputy prime minister, posted on X, opens new tab that she does not expect the jointly-owned Reconstruction Investment Fund to pay out any dividends in the first 10 years. DON'T MENTION THE RARE EARTHS At least everyone has stopped calling it the rare earths deal. The agreement covers all sub-soil resources, including oil, gas and a wide spectrum of metals. Ukraine has a couple of rare earth deposits, which is not surprising given the size of the country and that rare earths are not as rare as their name suggests. Deposits that are viable economically and technically are relatively unusual and how promising Ukraine's are is unclear. Even the best-mapped Novopoltavske field, opens new tab was last surveyed in 1982-1991. It is also inconveniently located just north of Chernihiv in Zaporizhzhia province, which is the wrong side of the front line from a Ukrainian point of view. So are two of the touted lithium projects. Indeed, about 40% of Ukraine's metal resources are under Russian occupation, according to estimates by Ukrainian think tanks We Build Ukraine and the National Institute of Strategic Studies. Unlocking the full value of the minerals deal will be impossible without a definitive peace and reconciliation of Ukraine's and Russia's competing territorial claims. LONG ROAD FROM MINE TO MARKET Ukraine has other lithium deposits and also hosts reserves of critical minerals such as uranium, titanium and graphite. But since existing production facilities are not included in the deal and many have been closed since the start of the war anyway, Ukraine will be building a minerals production chain from scratch. That is a long journey. The challenge with many of the metals on everyone's critical raw materials list is not getting them out of the ground, although that can be capital-intensive enough, but in refining them into high-purity products ready for the manufacturing process. Rare earths' separation and processing is notoriously tricky and dominated by Chinese operators, which is another reason why no-one's calling it the rare earths deal any more. Mined uranium also needs to be enriched before it can be fed into a nuclear power plant and titanium ore needs to be processed into aviation-grade alloy before it can be used to build aircraft. It's an inconvenient truth that Russia is one of the world's largest titanium processors and accounted for 27% of the enriched uranium supplied to U.S. commercial reactors in 2023. Russia, however, is explicitly excluded from benefiting from the reconstruction of Ukraine. PRICE PROTECTION Market price is another problem. Ukraine's graphite deposits are both on the right side of the front line and relatively well mapped. The Balakhivske project is at the feasibility study stage, according to the Ukrainian Geological Survey. There is a ready European market for the material needed for the anode in electric vehicle batteries. But will mining it in Ukraine be economically viable? Canadian miner Northern Graphite (NGC.V), opens new tab, the only producer in North America, has announced it is putting its Quebec plant on care and maintenance due to a 50% collapse in the graphite price. China controls 70% of the global supply chain and can exert huge influence over pricing, in this case flooding the market to undermine potential competitors. The West's lithium ambitions are being similarly stymied by Chinese over-supply and rock-bottom market prices. Ukraine will find that private investment will need government help to shield start-ups from price turbulence. The United States has already understood the need for direct federal action. The Department of Defense is a strategic investor, opens new tab in a domestic rare earths processing project being led by Australia's Lynas Rare Earths ( opens new tab. STAKING THE METALLIC FUTURE This minerals deal is clearly going to come with a long repayment schedule. But it is a sign of the times. As the world transitions from a fossil fuel economy to a metallic future, minerals have become the new geopolitical currency. In this new world order China is the dominant incumbent and the West the challenger. The United States has just made a strategic move in the great global minerals game. It will not be the last. Next up is the Democratic Republic of Congo, where another minerals-for-security deal is on the table.
Yahoo
25-03-2025
- Business
- Yahoo
Wizz Air reveals details on resuming flights in Ukraine
Hungarian airline Wizz Air is ready to return to Ukraine and is close to reaching an agreement on resuming commercial operations with some Ukrainian airports. Source: CEO József Váradi during the Logistics as a Driver of Economic Growth conference organised by the think tank We Build Ukraine Details: Váradi stated that Wizz Air has big plans for Ukraine and sees significant potential in the country's aviation sector. He mentioned that Wizz Air was planning not only to operate flights to Ukraine but also to restore operational bases and resume flights from the country. Váradi reported that Wizz Air has developed a plan to establish a network of around 100 routes within the first six months of resuming operations, aiming to achieve an annual passenger flow of five million. Váradi added that they were already prepared and actively negotiating with airports in Lviv and Kyiv, being close to finalising a commercial agreement. Background: Ryanair, one of the world's largest low-cost airlines, has developed a five-year plan to resume flights to Ukraine, but CEO Michael O'Leary says the airports the company has approached with the proposed deal are ignoring it. Ryanair is preparing a plan to restart flights to Ukraine within four to six weeks after the war with Russia is suspended. Viktor Mykyta, Deputy Head of the Ukrainian President's Office, told Forbes Ukraine that every effort would be made to reopen the airport in the city of Uzhhorod, but the final decision lies with the military personnel. Wizz Air intends to resume flights to Ukraine shortly after a ceasefire with Russia is announced, restoring about 30 inbound routes within six weeks. Support Ukrainska Pravda on Patreon!
Yahoo
25-03-2025
- Business
- Yahoo
Airports ignore Ryanair plans to resume flights after airspace reopens in Ukraine
Ryanair, one of the world's largest low-cost airlines, has developed a five-year plan to resume flights to Ukraine, but CEO Michael O'Leary says the airports the company has approached with the proposed deal are ignoring it. Source: Ryanair CEO Michael O'Leary at Logistics as a Driver of Economic Growth, a conference organised by the think tank We Build Ukraine Details: O'Leary said the low-cost airline has drawn up an ambitious plan to resume flights in Ukraine as soon as the skies reopen and it becomes safe. He said that according to the plan, Ryanair could fly 5 million passengers in Ukraine in the first year after the skies reopen and then increase that figure from 5 to 10 million passengers within five years. Details: O'Leary said his airline submitted the five-year growth plan to Boryspil and Lviv airports over two years ago and he is disappointed that Ryanair has received no response. Ryanair has aircraft at 90 European airports and could send some of them to Kyiv and Lviv. Their plan is to resume flights within six weeks of the airspace reopening, but in the absence of an agreement with the airports, flights to Ukraine are likely to start on a smaller scale – one million passengers in the first year. Background: Ryanair has prepared a plan to resume flights to Ukraine within four to six weeks of the war with Russia being suspended. Viktor Mykyta, Deputy Head of the President's Office, promised in an interview with Forbes to do everything possible to reopen Uzhhorod airport, but the military will make the final decision. Support Ukrainska Pravda on Patreon!
Yahoo
25-03-2025
- Business
- Yahoo
Kyiv, Lviv airports not cooperating on reopening plans, Ryanair CEO says
Ryanair's proposals to set the stage for the resumption of commercial flights in Ukraine have been met with "radio silence" for two years, the airline's CEO, Michael O'Leary, said on March 25. The restart of flights is vital for rebuilding Ukraine's economy, a process that cannot start unless "somebody gives the airports a kick up the backside," O'Leary said at a Kyiv conference organized by the analytical center "We Build Ukraine" and attended by the Kyiv Independent. Ukraine closed its skies for commercial flights at the outbreak of the full-scale invasion in 2022. Discussions have been ongoing about the possible reopening of some airports in major cities like Kyiv or Lviv later this year as the U.S. pushes for a ceasefire. O'Leary said that in July 2023, Ryanair submitted a proposal to the airports in the western city of Lviv and Boryspil near Kyiv that would see the company "deliver 5 million passengers to Ukraine within the first year of the skies reopening over Ukraine and grow that from 5 to 10 million passengers within five years." "But disappointingly, we haven't heard back from them for over two years," the CEO said. "I am somewhat at a loss to understand why the airports are not getting ready for the resumption of flights and why the airports are not doing the agreement with Ryanair." Without a cost agreement with the airports, the airliner would be able to deliver only about 1-1.5 million passengers instead of 5 million in the first year after the war, while the number of Kyiv routes would drop from 50 to 20, O'Leary said. O'Leary added that meetings with the airports' management are expected later this week in Warsaw. He named the cost agreement with the airports and the safety of civilian travel as key conditions for Ryanair to resume flights in Ukraine. Lviv's Danylo Halytskyi International Airport's general director said earlier this month that flights could restart as early as April or May, according to an optimistic scenario under government consideration. Director Tetiana Romanovska said that the Lviv airport is in talks with Wizz Air, Air Baltic, Turkish Airlines, SkyUp, Austrian Airlines, Lufthansa, and LOT on the possible flight resumption. The Ukrainian government claimed it is "95%" ready to reopen its skies but said resuming flights without sufficient air defenses would be "impractical" as long as the war is ongoing. Read also: Kyiv coffee shop drops 'Trump' name amid growing discontent with US president We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
