US and Ukraine Sign Memorandum Of Intent For Minerals Deal. What Does It Include And What Happens Next? Explained

The US and Ukraine have signed a Memorandum of Intent to move forward with a minerals and reconstruction investment deal aimed at deepening economic ties and supporting Ukraine’s post-war recovery, The Guardian reported on Friday. Here’s what’s in the document and what it means:

The US-Ukraine Memorandum of Intent For Minerals Deal: Key Points

1. Joint Investment Fund Planned
   • The U.S. and Ukraine intend to establish a reconstruction investment fund as part of a broader economic partnership, Reuters reported, citing the text posted on the website of the Ukrainian government.
   • This fund, the report said, will support the development of Ukrainian natural resources, including critical minerals.
2. Recognition of Past US Support
   • The document acknowledges the “significant financial and material support” the U.S. has provided since Russian advances in Ukraine, according to particulars of the memorandum of intent obtained by The Guardian.
3. Future Cooperation Goals
   • Both sides have expressed a desire for a lasting peace and a durable partnership between their governments and people.
   • The deal is framed as part of the American public’s interest in investing in a “free, sovereign and secure Ukraine.”
4. Military Aid Repayment
   • According to The Guardian report, the memorandum does not clarify whether any profits from the minerals deal will be used to repay U.S. military aid provided under the Biden administration.
   • President Donald Trump has claimed that Ukraine “owes” the U.S. $300 billion, while President Volodymyr Zelenskyy has said the weapons were grants, not loans, adding that Ukraine is willing to pay for any future aid provided by the Trump administration.
5. Respect for Ukraine’s EU Commitments
   • The memorandum reveals that the US “respects” Ukraine’s obligations under EU accession negotiations and international financial agreements.
6. Timeline for Final Deal
   • Ukrainian Prime Minister Denys Shmyhal is scheduled to visit Washington in the week of April 21 to finalize discussions with U.S. Treasury Secretary Bessent, the report said, citing the document.
   • Negotiating teams will seek to finalize the agreement by April 26, with signing expected shortly thereafter.
7. Acknowledgement of Ukraine’s Non-Nuclear Stance
   • The document recognizes Ukraine’s past contribution to global peace, especially its decision “to give up the world’s third-largest nuclear arsenal”.
8. Legal Structure and Signing
   • The memorandum can be signed in multiple counterparts, which will collectively form one binding document.

What Happens Next?

With the technical negotiations reportedly nearing completion, if all goes to plan, the formal agreement will be signed soon after April 26, launching the joint investment initiative.

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