Ukraine's Mineral Sectors Poised for Renewed Ties with the U.S.: Expert Insights

The mineral agreements with the United States will offer a chance for advancing the extraction sector in Ukraine, particularly concerning oil, natural gas, and essential minerals like graphite. This was stated by Andrii Dlihach, a Doctor of Economics, professor at Taras Shevchenko National University of Kyiv, and founder and head of Advanter Group, during a commentary shared on the RBC-Ukraine YouTube channel.

"It is evident that this document has the potential to facilitate the growth of the extraction sector in Ukraine. The country remains largely untapped, and it's well-known that Ukraine could emerge as a leading provider of natural gas, crude oil, and refined petroleum goods to the European Union," stated Dlihach.

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As per his statement, the accord will surely encompass the mining of essential minerals such as graphite.

"We want Ukrainian input on the choices made by this fund to aid in establishing not just extraction capabilities but also processing facilities. Although the accord does not explicitly state this, the shift where Ukraine transitions from being a minor participant to an equal stakeholder within the fund—with an equivalent voting power—offers optimism that we can persuade our collaborators about the necessity for investments in infrastructure, logistics, and processing facilities," highlighted the specialist.

Minerals deal

On May 1, Ukraine and the United States entered into a minerals agreement. This pact outlines the establishment of an investment fund sourced from proceeds generated through the sales of Ukrainian mineral reserves.

Ukraine's Minister of Economy, Yuliia Svyrydenko, stated that this agreement includes crucial elements for their nation and remains advantageous for both countries involved. Specifically, the control over subsoil resources stays with Ukraine.

To learn more about the specifics of the agreement’s contents and the events following its signing, check out the RBC-Ukraine article.