The US government on Sept 17 pledged US$75 million (S$96 million) to kick-start a landmark deal to invest in Ukraine’s vast mineral reserves, a commitment that will ease fears in Kyiv that the Trump administration is walking away from the war-torn country.
When an agreement in spring granted the US a stake in Ukraine’s critical minerals, Kyiv cast it as a way to lock in American support through business ties.
President Donald Trump has made it clear that he would no longer give US money to Ukraine for the war effort, leaving Kyiv scrambling to retain whatever American engagement it could.
Many observers doubted that the deal could draw US investment while the fighting continues. But the new American pledge and a matching commitment by the Ukrainian government will bring a fund created under the agreement to US$150 million.
The flow of US government money into Ukraine’s minerals, hydrocarbons and related infrastructure could help reassure private investors and attract badly needed capital to sustain the country’s war economy.
It also shows the new mercantile nature of the US-Ukrainian alliance under Mr Trump.
While the Biden administration spent tens of billions of dollars to aid Kyiv, Washington now focuses on opportunities to profit through investments and sales. It provides weapons to Ukraine only through purchases facilitated by a Nato-backed procurement system that uses European funds.
Hellbound and Down 