U.S.-Ukraine Pact for Mineral Cooperation's Complete Details Unveiled

U.S.-Ukraine Pact for Mineral Cooperation's Complete Details Unveiled

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Finalizing months of rocky negotiations, the U.S. and Ukraine officially agreed on a long-awaited minerals pact in Washington D.C. on April 30.

U.S. officials heralded the agreement as a powerful symbol of ongoing support for Ukraine and a sign of improving relations between Presidents Donald Trump and Volodymyr Zelensky.

Prior versions of the arrangement were often criticized for exploiting Ukraine's natural resources, institutions, and infrastructure. However, the latest version appears to be much more beneficial for Kyiv, ensuring Ukraine holds "complete control over subsoil, infrastructure, and natural resources," as Prime Minister Denys Shmyhal clarified before sealing the deal. The agreement does not burden Ukraine with any debt obligations.

Despite the promise, the pact does not provide concrete security assurances to Ukraine. Instead, it only affirms a long-term strategic partnership between the two nations and commits U.S. support for Ukraine's security, prosperity, reconstruction, and integration into global economic organizations.

Below is the entire text of the agreement, issued by Ukraine's Cabinet of Ministers:

WHEREAS, the United States of America has provided substantial financial and material assistance to Ukraine following Russia's February 2022 full-scale invasion;

WHEREAS, the U.S. public desires a free, autonomous, and secure Ukraine;

WHEREAS, the United States of America and Ukraine desire lasting peace in Ukraine and a solid partnership between their peoples and governments;

WHEREAS, the United States of America recognizes Ukraine's contribution to enhancing international peace and security by peacefully abandoning its world's third-largest nuclear arsenal;

WHEREAS, the United States of America and Ukraine wish to ensure that nations and others who negatively impacted Ukraine during the conflict do not profit from Ukraine's post-conflict reconstruction;

WHEREAS, the United States of America and Ukraine aim to build the necessary conditions to attract investment, particularly in mining, energy, and related technology sectors, from third parties such as international investors based in the United States, the European Union, and other nations supporting Ukraine against Russia's invasion;

WHEREAS, the United States of America acknowledges Ukraine's intention to balance the minerals agreement with its obligations relating to European Union accession or agreements with international financial institutions or other official creditors;

WHEREAS, Ukraine possesses sovereignty over its natural resources found in its territory, territorial waters, exclusive economic zone, and continental shelf and holds the right to negotiate this arrangement;

WHEREAS, Ukraine retains the ability to decide which areas within its territory and territorial waters, exclusive economic zone, and continental shelf will be available for resource exploration and extraction; and

WHEREAS, this Agreement does not prejudice Ukraine's property ownership rules, including those associated with state-owned property and privatization.

AS A RESULT, the Government of Ukraine and the Government of the United States of America (referred to individually as a "Party" and collectively as the "Parties") hereby establish the United States-Ukraine Reconstruction Investment Fund Agreement ("Agreement") as follows:

Article I: Definitions

Each capitalized term not defined within the relevant Article has the meaning set forth in Appendix A.

Article II: Establishing a Partnership

1. The policy of the Parties is to have the United States International Development Finance Corporation (the "U.S. Limited Partner" or "U.S. Collaborator") and the State Organization "Agency on Support Public-Private Partnership" (the "Ukraine Limited Partner" or "Ukraine Collaborator"), agencies backed by the full faith and credit of their respective governments, conclude an agreement to establish the United States-Ukraine Reconstruction Investment Fund in the form of a limited partnership (the "Partnership").
2. The Government of Ukraine will take all measures to empower its agencies and instrumentalities to execute and implement this Agreement and the ensuing agreement ("LP Agreement") as necessary, including adopting, maintaining, and enforcing legislation as need be to execute and implement this Agreement and the LP Agreement.
3. The Government of the United States of America confirms that it has taken the necessary steps to enable its relevant parties to execute and implement this Agreement and the LP Agreement.
4. In acknowledgement that the economic activity related to this Partnership will take place in Ukraine, the Government of Ukraine pledges to ensure that, regardless of any future Ukrainian legislation, the Partnership and its collaborators receive treatment as favorable as that required by this Agreement. If inconsistencies between Ukrainian legislation and this Agreement arise, this Agreement will supersede where applicable. Moreover, the Government of Ukraine confirms that it cannot use its internal law as a justification for failing to meet its obligations under this Agreement.

Article III: Objective of the Agreement

1. The objective of this Agreement and the Parties' policy is to promote economic cooperation, facilitated by the LP Agreement.
2. This Agreement strengthens the long-term strategic partnership between the Parties, allowing the reconstruction and modernization of Ukraine in response to the widespread destruction caused by Russia's invasion and striving for a peaceful, sovereign, and resilient Ukraine.
3. The Parties recognize that Ukraine's recovery requires not only financial investments but also structural, institutional, and technological transformations, aligned with democratic values, market principles, and the rule of law.
4. The Parties also affirm that this Agreement is an expression of their broader, long-term strategic partnership and a tangible demonstration of the United States of America's support for Ukraine's security, prosperity, reconstruction, and integration into global economic frameworks.
5. The Partnership is intended to serve as a flagship mechanism for encouraging transparent, accountable, and future-oriented investments into key sectors of Ukraine's economy to support Ukraine's recovery strategy.

(Continued in the next response due to the character limit)

1. The treaties between Ukraine and the United States, including the minerals pact, are aimed at strengthening their long-term strategic partnership and supporting Ukraine's financial recovery from war-and-conflicts.
2. The latest minerals pact ensures Ukraine maintains complete control over its natural resources, infrastructure, and subsoil, as stated in the agreement.
3. In the finance sector, the U.S. has pledged to attract investment, particularly in mining, energy, and technology industries, through the United States-Ukraine Reconstruction Investment Fund Agreement.
4. The agreement does not structurally guarantee Ukraine's security, instead emphasizing a commitment to Ukraine's security, prosperity, reconstruction, and integration into global economic organizations.
5. General news headlines have speculated that the minerals pact and the reconstruction investment fund are part of a broader political initiative aimed at demonstrating the U.S.'s ongoing support for Ukraine.

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