US-Ukraine minerals deal doesn't specify if Washington will profit
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A dump truck drives past the Southern Iron Ore JV open-pit mine, amid Russia's attack on Ukraine, in Kryvyi Rih, Ukraine April 23, 2025. REUTERS/Thomas Peter
LONDON (Reuters) -A deal expected to be signed later on Wednesday gives the United States preferential access to new Ukrainian natural resources deals, but does not automatically hand Washington a share of Ukraine's mineral wealth or any of its gas infrastructure, according to a draft seen by Reuters.
The draft sets out the creation of a joint U.S.-Ukrainian fund for reconstruction which will receive 50% of profits and royalties accruing to the Ukrainian state from new natural resources permits in Ukraine.
It says that any future U.S. military assistance to Ukraine will count towards the U.S. contribution to the joint fund.
However, the draft does not spell out how the joint fund's revenues will be spent, who benefits, or who controls decisions about the spending.
According to the draft, the United States, or other entities it designates, will get preferential -- but not exclusive -- access to new permits, licenses and investment opportunities in the field of Ukrainian natural resources, according to the draft. Existing deals are not covered.
Previous iterations of the deal during negotiations had said that it would include Ukrainian natural gas infrastructure, which is one of Ukraine's most valuable assets, sources with knowledge of the matter said earlier this month.
Gas infrastructure is not cover by the draft seen by Reuters on Wednesday.
The previous iterations had also stated that the United States would control how the joint fund's revenue was spent, and could therefore receive royalties and profits from Ukraine's natural resources, the sources had previously said.
However, this was absent from the draft deal seen by Reuters that was slated for signing on Wednesday.
(Reporting by Tom Balmforth; editing by Christian Lowe)
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