“Volker on the fossil fuel agreement: it will not have an immediate financial result, but it is important for changes in the US narrativeThe creation of an investment fund will not give quick financial results, but it will change the US attitude towards Ukraine. The
purpose of the agreement is to show that Ukraine can work off aid.”, — write: unn.ua
The agreement on minerals is broader than just minerals. It generally covers natural resources, and it creates a Reconstruction Fund so that in the event of new licenses for resource extraction in Ukraine, the money goes to this Fund… The reality is that money will not be coming into this Fund for many years to come
He stressed that the purpose of this agreement is to change the political narrative in the United States: instead of talking about Ukraine as an object of charity, to demonstrate that it can work off the aid and compensate for it in the future.
“So we can be partners and we can work together. This is an important change in the narrative in the United States,” Volker emphasized.
The mineral agreement is largely symbolic, but that’s enough for Trump – CNN02.05.25, 04:04 • 21800 views
Volker noted that US President Donald Trump and conservative Republicans were very angry with the Biden administration for spending taxpayers’ money and not having a strategy.
So, now they say that we have a strategy, we have a way for Ukraine to pay us back for it, so it will be okay… You won’t see any money coming into it until the war is over. It also takes many years of investment in the mining industry
Volker also commented on the prospects for foreign investment.
He stressed that not all of Ukraine is equally dangerous, not all industries are equally dangerous, and many of the things that hinder foreign investment in Ukraine are more related to the business climate than just the world.
“So we need to focus on solving problems. What are the obstacles to economic development and investment?… There are problems in Ukraine’s politics and business climate. There are blockages in international financial institutions. There are national export credit agencies that have the capacity to allocate resources, but they do not have a bankable project,” Volker said.
AdditionAccording to Reuters, Ukraine and the United States will begin to benefit financially from the mineral agreement in a decade or more, as investors face many obstacles to launching new mines in the war-torn country.
RecallUkraine has signed an agreement with the United States to establish a Reconstruction Investment Fund, which is called a mineral agreement.
On May 8, the Verkhovna Rada ratified the agreement between Ukraine and the United States on minerals.
Ukraine and the United States discussed how to make the fund under the mineral agreement operational by the end of the year, and the first meeting of the fund is expected in July.
The agreement with the United States to establish an investment fund opens the way for new military assistance to Ukraine from the United States.