U.S. Gains Preferential Access in Ukraine Resources Deal

A draft deal set to be signed provides the U.S. preferential access to Ukrainian natural resources. A joint U.S.-Ukrainian fund for reconstruction will collect 50% of profits and royalties from new permits. The draft excludes U.S. control over fund spending and Ukraine's gas infrastructure.

The United States is poised to secure preferential access to Ukrainian natural resources through a draft deal anticipated to be signed. While the agreement entails strategic benefits for the U.S., it notably does not grant automatic ownership over Ukraine's mineral wealth or its critical gas infrastructure.

Central to the draft is the establishment of a joint U.S.-Ukrainian fund aimed at reconstruction. This fund is slated to absorb 50% of the profits and royalties that would typically belong to the Ukrainian state from new natural resource permits. However, specific details on how the fund's revenues will be allocated, or the decision-making process over expenditures, remain unspecified.

While preferential access to new permits and investment opportunities in Ukraine's natural resources is granted, the draft ensures that existing deals and gas infrastructure are not included under the U.S. purview. Earlier discussions hinted at U.S. control over fund revenue allocation, though such provisions are conspicuously absent in the current draft.

(With inputs from agencies.)