The agreement between the United States and Ukraine on minerals benefits both parties, but the key question is whether it will bring real economic benefits to both countries. This was reported by The Washington Post, reports UNN.
Details
According to the publication, the United States receives a certain share for its continued support, while Ukraine receives a long-term economic partnership with the United States, which is likely to be enough to deter further Russian aggression.
In addition, both countries will have equal control over the Ukraine Recovery Fund. Thus, Ukraine will retain full ownership of its minerals, and will not be required to reimburse military assistance from the United States in the past.
At the same time, the United States will receive rights to resources worth trillions of dollars. According to WP, this will help Washington compensate for its dependence on Chinese minerals.
However, the main problem with the agreement is whether it will bring real economic benefits to both countries. For example, it is not known exactly in which regions these minerals will be mined, as a significant number of deposits are located in territories occupied by Russian troops.
It is also unknown whether minerals can be mined cheaply enough to compete with China.
Mining requires a long time – usually more than a decade. This requires initial research, and it is also necessary to clear mining areas, build infrastructure – roads, bridges, etc. Mining also requires a significant amount of electricity – at the same time, constant Russian strikes on Ukraine over the past two years have halved its electricity
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