The joint U.S.-Ukrainian investment fund established to rebuild the country has concluded its first deal in the critical minerals sector and launched four other new projects. A senior U.S. official told Reuters, reports UNN.
Details
The fund, established under the minerals agreement (signed by both countries in April last year at the initiative of U.S. President Donald Trump), focuses on five strategic sectors, ranging from mineral extraction and defense to energy and infrastructure.
Conor Coleman, head of the investment division at the U.S. International Development Finance Corporation (DFC), said that the total value of the fund’s projects currently stands at around $70 million, demonstrating Washington’s support for Kyiv in its prolonged war with Russia.
"It is extremely important for the Ukrainian people that we are investing right now," Coleman said in an interview, referring to the ongoing destruction Ukraine is suffering ahead of another winter.
The first, long-awaited minerals deal involves an investment of around $30 million in a "joint investment platform" with BGV Group, a company founded by Hennadiy Butkevych, a billionaire and co-owner of Ukraine’s largest supermarket chain, "ATB."
According to Coleman, at the initial stage, the activity will focus on early-stage mining projects across Ukraine, specifically deposits of rare-earth metals, uranium, beryllium, and zirconium.
"All of these resources are included on the U.S. list of critical minerals, so this aligns very well with the priorities of the American administration," Coleman said.
In addition
The two other new projects announced on Friday are aimed at strengthening Ukraine’s electricity and heating networks in response to the increasing frequency of Russian attacks on critical infrastructure ahead of winter.
Coleman said that one of these projects will complement a nearly $100 million loan that the DFC has just agreed to provide to Ukraine’s largest private energy company, DTEK. The funds will be used to create a new battery system capable of providing backup power to approximately 600,000 Ukrainian households for two hours.
The project also provides for "access to capital in the event of damage." The fund will also acquire a stake in a cogeneration platform (a system for the combined production of thermal and electrical energy) intended to create and operate a number of "energy hubs" whose purpose is to restore damaged electricity and heat supplies for households.
Coleman also noted that the fund is seeking additional capital to expand its capacity.