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U.S.A News thread

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BSF Senior Staff
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Aug 19, 2023
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US-Ukraine Rare Minerals Deal Finalized, But Security Guarantees Unclear

Ukraine has finalized a deal granting the US access to its rare mineral deposits, President Zelensky confirmed. Kyiv hopes the agreement will strengthen its economic ties with Washington and potentially secure future security guarantees.Under the deal, Ukraine will allocate 50% of future revenues from state-owned mineral resources to a joint investment fund managed equally with the US.

However, no security assurances have been included yet, a key demand from Zelensky. The agreement is set to be signed during his visit to Washington.

This agreement marks a significant step in Ukraine-US economic cooperation, particularly in the strategic minerals sector. By granting the U.S. access to its rare mineral deposits, Ukraine is strengthening its economic ties with Washington while aiming for potential future security guarantees.

Key Highlights of the Deal:

50% Revenue Allocation – Ukraine will allocate half of future revenues from state-owned mineral resources to a joint investment fund managed equally with the U.S.
Strategic Economic Partnership – The deal enhances economic collaboration, especially in critical minerals essential for technology, defense, and energy industries.
No Security Assurances Yet – Despite Kyiv’s hopes, the agreement does not include formal security guarantees at this stage.
Final Signing in Washington – The deal is expected to be officially signed during Zelensky's visit to the U.S.

Geopolitical Impact:

This agreement could strengthen Western supply chains for rare minerals, reducing reliance on China and Russia. However, the lack of explicit security commitments may continue to be a point of contention for Ukraine.
 

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