‘Mineral deal’ with the US will not bring immediate benefits to Ukraine – FT

The investment deal between Ukraine and the United States, which is backed by US President Donald Trump, is aimed at boosting Ukraine’s mining and energy sectors.

It will not bring results for at least a decade, according to experts quoted by the Financial Times.

Significant obstacles to the project include Russia’s ongoing war against Ukraine, damaged infrastructure, classified Soviet-era geological data and the risk of corruption, as well as contamination from unexploded ordnance.

The agreement, approved by Ukraine’s parliament on 8 May, includes the creation of a joint ‘reconstruction investment fund’ to support future mining and energy projects. At the same time, according to the FT, industry leaders warn that mining operations in Ukraine require long lead times and significant private sector investment.

Erik Rasmussen, former head of natural resources at the European Bank for Reconstruction and Development, said that it will take a long time. In his opinion, ‘it could be 10-15 years’.

Peter Bryant of the Clareo advisory group added that the agreement ‘does little to mitigate supply chain risks over the next 10 years’. Ukraine’s resource base includes iron ore, lithium, coal, graphite and titanium ores. The country is the third largest gas producer in Europe. While oil and gas deposits may be developed more quickly, observers noted that mining projects will face years of geological exploration before reaching the stage of feasibility.

Ukraine’s Economy Minister Yulia Svyrydenko said the fund would be operational ‘within a few weeks.’ She acknowledged that profits will not be distributed for at least ten years.

‘We expect that during the first 10 years, the fund’s profits and revenues will not be distributed, but reinvested,’ she said.

US-backed TechMet, which is seeking to secure Ukrainian lithium, called the deal promising but noted that developing the facilities would take time and money. Meanwhile, DTEK, Ukraine’s leading private energy company, confirmed talks with US companies and welcomed the signal that Ukraine is ‘open for business’.

Despite the optimism of some investors, others remain cautious.

As a reminder, food fairs are being held in eight districts of Kyiv on 10 May.