Ukraine's PM: new military aid may count as part of US contribution to minerals fund

Ukraine’s Prime Minister Denys Shmyhal stated on Wednesday 30 April that future military aid from the United States could be counted as part of the country’s contribution to the natural resources fund.

Shmyhal shared details of what the upcoming minerals agreement between the US and Ukraine will look like.

"It’s an agreement to establish an investment fund in Ukraine with a 50/50 split in both management and contributions from each side. The contributions will be made in monetary form. The US side may also count new – I emphasise, new – military aid to Ukraine as a contribution to this fund," said during the national joint 24/7 newscast. 

Asked to clarify whether the fund would require new military aid packages from the United States in order to become operational, Shmyhal responded affirmatively.

"You’ve understood it absolutely correctly. Contributions to this fund can and should include monetary funds from both the American partners and Ukraine, but also new aid provided to Ukraine after the agreement is signed may be counted by both sides as a contribution to the fund," he added.

Shmyhal added that another key aspect of the agreement is that the United States acknowledges Ukraine’s contribution to global security, highlighting that the agreement references the Budapest Memorandum as part of this recognition.

He stressed that under the agreement, Ukraine retains control over all resources and that infrastructure and natural resources are not part of or subject to the fund.

"Ukraine will only contribute licences from the new mineral resource rent – this will be our contribution. We will transfer 50% of that amount to the fund in monetary form," he said.

Shmyhal also stated that the last few details of the draft natural resources agreement with the United States are currently being finalised and it may be signed within the next 24 hours.

On 17 April, Ukraine and the United States signed a memorandum of intent on "concluding a formal agreement on economic partnership and a reconstruction investment fund".

According to the memorandum, the agreement will provide for the establishment of an investment fund for Ukraine’s reconstruction, and the drafting may not create conflicts with Ukraine’s path towards European integration.

More details can be found here: Speedy deal, strategic gains: inside the US-Ukraine mineral agreement timeline.