EU urges Ukraine to honour 2021 mineral pact amid US deal

Spokesperson for the European Commission Lea Zuber has called on Ukraine to uphold its commitments under the 2021 memorandum of understanding on critical raw materials signed with the EU, in light of Kyiv’s recently announced agreement with the US.

Zuber addressed concerns over potential overlaps between Ukraine’s cooperation with Washington and its existing commitments to Brussels, Caliber.Az reports via Russian media. 

“Based on our preliminary assessment, the US-Ukraine deal is not exclusive and does not impact our 2021 Memorandum of Understanding. Ukraine is free to cooperate with the EU in this area, and we would welcome continued engagement,” Zuber said.

The agreement, signed on April 30, grants the US preferential access to Ukraine’s mineral resources and supports the creation of a joint investment fund aimed at rebuilding the war-torn country. The initiative is being heavily promoted by US President Donald Trump, who has pledged to help broker a peace settlement in the ongoing war with Russia.

Ukraine’s First Deputy Prime Minister and Minister of Economy, Yuliia Svyrydenko, announced that under the agreement, Ukraine will contribute 50 per cent of all revenues from new rent and new licenses for mineral extraction on newly designated sites to the bilateral investment fund being established. Both the US and Ukraine will have equal voting rights in the management of the fund.

The deal does not entail any direct debt obligations for Ukraine to the US. For the first ten years of operation, the fund will not distribute dividends; instead, all earnings will be reinvested within Ukraine. The investments will focus on the development and processing of mineral resources, as well as the improvement of infrastructure.

By Naila Huseynova