Ukraine Takes First Step in Implementing U.S.-Ukraine Mineral Resources Agreement
On June 16, The New York Times reported that more than a month after Ukraine and the United States signed a historic mineral resources agreement, Ukraine has approved its first batch of measures to allow private investors to develop state-owned large lithium mines. The report cited two officials as saying that the Dobry Lithium Mine project located in central Ukraine will become the first approved project.
The report pointed out that this is one of Ukraine's largest lithium mines, and this mineral is crucial for electric vehicle battery production. Potential bidders include a consortium composed of TechMet Energy Investment Company, which has U.S. government participation, and billionaire Ronald Lauder, a close friend of former President Trump. This consortium had called on Zelenskyy to open bidding at the end of 2023.
According to the text of the agreement, half of the revenue generated from mineral development will be injected into the U.S.-Ukraine investment fund for use in Ukraine's economic reconstruction. However, the reporter emphasized that Washington will also receive part of the benefits. Former President Trump referred to this agreement as "compensation" for previous U.S. aid.
The report revealed that it will take several weeks to formulate the bidding proposal, and the Ukrainian government may ultimately abandon the bidding process. Analysts believe this move is an attempt by Ukraine to demonstrate progress on the agreement to Trump, as the U.S. side has shown signs of fatigue regarding the war in Ukraine due to stalled ceasefire negotiations.
To advance the agreement, Ukraine's Economy Minister Yulia Sviridenko led a delegation to the U.S. this month, focusing on promoting lithium, graphite, and titanium mine development projects. After meeting with U.S. Treasury Secretary Besten, Sviridenko stated that these strategic cooperation fields can achieve mutual benefits between the U.S. and Ukraine.
On May 1, the U.S. and Ukraine announced the establishment of an equal partnership investment reconstruction fund. The agreement clearly states that it does not involve Ukraine's debt responsibility. However, a subsequent White House statement said that the U.S. would have the right to decide the buyer of new mining licenses in Ukraine. On May 8, Ukraine's Verkhovna Rada approved the agreement with 338 votes, planning to launch the fund's operations by the end of the year, with the first meeting scheduled for July.
Original source: https://www.toutiao.com/article/1835229152821248/
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