Joint fund of Ukraine and the U.S. has concluded its first minerals agreement
The joint American-Ukrainian reconstruction investment fund has concluded its first agreement on the extraction of critically important minerals, RBC-Ukraine reports, citing Reuters.
According to Conor Coleman, head of the investment department at the U.S. International Development Finance Corporation (DFC), the fund will initially focus on early-stage extraction projects.
Deposits of rare earth elements, uranium, beryllium, and zirconium have been designated as interim and strategic targets.
He emphasized that all of these resources are on the list of critically important minerals of the United States, which fully corresponds to the priorities of the American administration. The investments should also demonstrate Washington's support for Kyiv in the prolonged war against Russia.
«It is very important for the Ukrainian people that we invest right now,» Coleman emphasized.
Two more new projects are aimed at strengthening Ukrainian electricity and heating networks following intensified attacks on key infrastructure.
These initiatives will complement the nearly 100 million dollars in credit that the DFC agreed to provide to the Ukrainian energy company DTEK.
The funds will be directed toward a new battery system that will provide backup electricity supply to about 600,000 Ukrainian homes for up to two hours, and the project itself will also have access to capital in the event of losses.
In addition, the fund will acquire an equity stake in a cogeneration platform for the production of heat and electricity. It is intended to create and operate a number of «energy hubs» designed to restore damaged household heating and power supply systems.
The joint investment fund was created as part of the minerals agreement that the countries signed in April last year at the initiative of U.S. President Donald Trump.
The fund's activities are focused on five strategic sectors, including mineral extraction, defense, energy, infrastructure, and related industries. The organization is currently actively seeking additional funds to expand its investment capabilities.
