MINEX Forum

Tag: Ukraine

  • Ferrexpo’s Ukrainian Unit Faces Bankruptcy Proceedings Amid Legal Turmoil

    Ferrexpo’s Ukrainian Unit Faces Bankruptcy Proceedings Amid Legal Turmoil

    Ukraine-focused miner Ferrexpo announced on Thursday that the Commercial Court of Poltava has accepted an application to initiate bankruptcy proceedings for its Ukrainian subsidiary, Ferrexpo Poltava Mining (FPM).

    Following the announcement, Ferrexpo’s shares dropped 6.6%, trading at 65 pence.

    Despite the court’s acceptance of the application, the company clarified that formal bankruptcy procedures have not yet commenced. A preparatory court hearing is scheduled for May 27, during which the court will review the application.

    Ferrexpo has been embroiled in legal disputes in Ukraine since 2022 when its main shareholder, Ukrainian billionaire Kostiantyn Zhevago, was arrested on embezzlement charges linked to the collapse of Finance & Credit Bank.

    In 2024, a Ukrainian court ruled against FPM, demanding a payment of 4.73 billion hryvnias ($114.06 million), alleging the subsidiary had provided guarantees to Bank F&C. Although this claim was suspended by the Ukrainian court of appeal, the final decision remains pending.

  • Ukraine Ratifies Agreement with the US for Access to Natural Resources

    Ukraine Ratifies Agreement with the US for Access to Natural Resources

    Ukraine’s parliament has ratified a landmark agreement with the United States, paving the way for enhanced American access to the country’s natural resources. This move is seen as part of President Volodymyr Zelenskiy’s broader strategy to improve diplomatic and economic ties with former US President Donald Trump.

    The agreement, reached after prolonged negotiations, saw Washington abandon its demand for the repayment of billions of dollars in aid provided to Kyiv since the onset of Russia’s invasion over three years ago. In a decisive vote on Thursday, 338 Ukrainian lawmakers endorsed the ratification, signaling strong political support for the initiative.

    The deal grants the US privileged access to investment opportunities in Ukraine’s resource sectors, including aluminum, graphite, oil, natural gas, and other strategic deposits. This is viewed as a critical step to secure US favor as Trump advocates for an end to the conflict that would potentially benefit Moscow.

    Additionally, the agreement outlines the possibility of the US using future military aid as contributions to a joint investment fund, further solidifying economic cooperation between the two nations. As Russia maintains pressure along a thousand-kilometer frontline, Ukraine appears determined to leverage its natural assets to bolster international alliances and economic resilience.

  • Ukraine and U.S. Seal Controversial Minerals Deal After Tense Talks

    Ukraine and U.S. Seal Controversial Minerals Deal After Tense Talks

    Ukraine and the United States signed a landmark minerals and profit-sharing agreement on April 30 in Washington, marking the end of months of turbulent negotiations and the beginning of a new phase of economic cooperation focused on reconstruction.

    The agreement gives the U.S. preferential access to future Ukrainian mineral deals and establishes a joint investment fund for rebuilding Ukraine’s war-torn infrastructure. It also secures Ukraine’s full sovereignty over its natural resources, following President Volodymyr Zelensky’s refusal to sign earlier versions that would have required Ukraine to repay past military aid or relinquish control of key assets.

    “This is a win for Ukraine,” said Prime Minister Denys Shmyhal. “We will attract major investments, secure growth, and remain in control of our critical minerals.”

    The U.S. had previously pushed for terms granting it up to 50% of Ukraine’s revenues from rare earths, oil, and gas, and even a stake in infrastructure like ports. President Donald Trump reportedly demanded repayment of $300 billion in aid and up to $500 billion in future mineral revenue — conditions Kyiv firmly rejected.

    Only after Zelensky sent Trump a letter expressing willingness to negotiate and praising U.S. support did tensions ease. “Nobody wants peace more than the Ukrainians,” Trump quoted Zelensky as writing, using the letter to bolster support for the deal during a speech to Congress.

    The final agreement establishes a joint fund where both nations will equally manage proceeds from newly issued licenses for critical minerals. For the first ten years, profits will be reinvested into Ukraine’s infrastructure and economic development. Past revenues and aid are excluded, and there are no debt obligations.

    Ukraine’s mineral wealth includes Europe’s largest lithium deposits, 20% of global graphite resources, and significant reserves of rare earth elements vital to defense and green technologies. But much of this wealth lies in or near Russian-occupied territories, making future exploitation a complex and risky endeavor.

    Despite securing equal partnership terms and full resource control, the deal offers no U.S. security guarantees. Critics say the agreement may remain symbolic if the war drags on.

    Still, U.S. Treasury Secretary Scott Bessent called the agreement a signal to Russia of Washington’s enduring support for a “free, sovereign, and prosperous Ukraine.”

  • Ukraine and U.S. Sign Landmark Minerals Agreement to Launch Joint Reconstruction Fund

    Ukraine and U.S. Sign Landmark Minerals Agreement to Launch Joint Reconstruction Fund

    On April 30, Ukraine and the United States signed a pivotal minerals agreement establishing a joint “Reconstruction Investment Fund” aimed at supporting Ukraine’s economic recovery and long-term development. The deal was signed in Washington by Ukraine’s First Deputy Prime Minister Yulia Svyrydenko and U.S. Treasury Secretary Scott Bessent, following months of complex negotiations.

    “This document ensures success for both our countries,” said Svyrydenko, emphasizing that the fund marks a strategic investment partnership without compromising Ukraine’s sovereignty over its subsoil, infrastructure, or state-owned enterprises.

    The agreement creates a jointly managed fund to which both countries will contribute, using proceeds from newly issued licenses for critical minerals and oil and gas projects. It explicitly excludes revenue from existing projects and does not impose any debt obligations. Additionally, neither Ukraine nor the U.S. will tax the fund’s income or contributions.

    Bessent highlighted the deal as a sign of lasting U.S. support, stating, “This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine.”

    While the deal offers no direct security guarantees, it outlines a long-term strategic alignment and commits the U.S. to help attract further investment and technological support for Ukraine. Importantly, it includes safeguards to prevent individuals or entities linked to Russia’s war machine from benefiting.

    Ukrainian Prime Minister Denys Shmyhal praised the agreement, noting it would help drive reconstruction, economic growth, and technology transfer. He confirmed that the deal must now be ratified by Ukraine’s parliament, the Verkhovna Rada.

    Despite last-minute tensions reported by the Financial Times, the agreement was finalized, setting the stage for a new phase of U.S.-Ukrainian economic cooperation.

  • U.S. and Ukraine Near Landmark Deal on Mineral Access and Reconstruction Fund

    U.S. and Ukraine Near Landmark Deal on Mineral Access and Reconstruction Fund

    The United States and Ukraine are poised to finalize a landmark strategic agreement that would grant Washington preferential access to future Ukrainian mineral and energy projects in exchange for continued military aid and investment, according to multiple media reports.

    A draft of the agreement, obtained by Reuters, outlines the creation of a joint U.S.-Ukrainian reconstruction fund. This fund would receive 50% of profits and royalties from newly issued resource permits. While the U.S. will not directly own Ukrainian assets or infrastructure, the deal secures American or U.S.-designated entities first-in-line access to new mineral and energy development licenses.

    The proposed agreement exempts existing contracts and drops earlier provisions that would have allowed U.S. influence over Ukraine’s gas infrastructure.

    Bloomberg reported that the deal covers a wide range of critical resources including graphite, aluminum, oil, and natural gas. With Ukraine holding an estimated $15 trillion in mineral reserves—among the largest in Europe—the agreement positions the country as a key supplier of strategic raw materials.

    Ukrainian Prime Minister Denys Shmyhal described the plan as a “strategic investment partnership” that will help rebuild Ukraine and secure its long-term development. Crucially, only future U.S. military aid will be counted as contributions to the fund—previous military support, amounting to tens of billions of dollars, will not be monetized under this framework.

    The deal requires ratification by Ukraine’s parliament. Economy Minister Yulia Svyrydenko is currently in Washington to finalize negotiations.

    The agreement aligns with U.S. President Donald Trump’s broader policy goals, including securing critical resources and promoting a negotiated ceasefire with Russia. Although peace talks remain stalled, recent backchannel diplomacy—including a private meeting between Presidents Trump and Zelensky at the Vatican—suggests renewed communication.

  • Trump Warns Ukraine of “Big Problems” Over Minerals Deal, Zelensky Seeks Clarifications

    Trump Warns Ukraine of “Big Problems” Over Minerals Deal, Zelensky Seeks Clarifications

    US President Donald Trump has accused Ukrainian President Volodymyr Zelensky of attempting to back out of a rare earth minerals deal, warning of “big problems” if Kyiv refuses to sign. The agreement, expected to be finalized this week, has faced last-minute revisions, prompting concerns from Ukraine.

    Trump, speaking aboard Air Force One on Sunday, claimed Zelensky was seeking to renegotiate terms, possibly in exchange for NATO membership—a demand he dismissed as unrealistic. “If he’s looking to renegotiate the deal, he’s got big problems,” Trump said.

    However, Zelensky denied linking the deal to NATO, stating Tuesday that membership was “never part of this agreement.” He emphasized Ukraine’s readiness for an unconditional ceasefire but acknowledged that the US proposal had evolved significantly.

    A new draft, submitted by the US Treasury Department and reviewed by CNN, expands American control over Ukraine’s mineral resources, including oil, gas, and rare earth metals. It also proposes a joint investment fund managed mostly by US appointees, raising fears in Kyiv over sovereignty and repayment of past US aid.

    Zelensky confirmed that negotiations were ongoing but cautioned that the deal had been revised multiple times. “We are for cooperation with the United States,” he said, though Ukraine opposes clauses treating past aid as a “contribution” to the fund.

    Meanwhile, Trump has also pressured Russia, threatening secondary sanctions if Moscow obstructs a ceasefire. Finnish President Alexander Stubb, after meeting Trump, suggested April 20 as a deadline for peace talks.

  • Ukraine and US Work Toward “Acceptable” Economic Deal Amid Tensions

    Ukraine and US Work Toward “Acceptable” Economic Deal Amid Tensions

    Ukraine’s Foreign Minister, Andrii Sybiha, stated that officials are advancing discussions with the USon an economic agreement deemed “acceptable” by both sides. This comes shortly after former President Donald Trump accused Kyiv of attempting to renegotiate the deal.

    Sybiha confirmed that Ukrainian authorities are reviewing the latest draft of an infrastructure and natural resources agreement sent by the US last week. He emphasized that Kyiv is ready to support a deal ensuring security through a strong American business presence in Ukraine.

    “The process will continue,” Sybiha told reporters in Kyiv during a meeting with his Lithuanian counterpart. “We will work with our American colleagues to reach a mutually acceptable text.”

    Trump recently redirected his frustration toward Ukrainian President Volodymyr Zelenskiy, accusing him of demanding new terms for the agreement. This follows Trump’s earlier criticism of Russian President Vladimir Putin, highlighting the shifting geopolitical tensions.

    Meanwhile, concerns in Kyiv have grown over the draft deal, which could grant the US significant control over future infrastructure and mineral investments in Ukraine. Some officials worry this might hinder Ukraine’s EU membership bid or require repayment of US military and economic aid.

    Despite these fears, Sybiha stressed that the agreement could attract major American businesses, serving as a security guarantee. Ukrainian negotiators are carefully reviewing the draft and may request amendments before finalizing terms.

    As diplomatic efforts continue, Russia launched fresh strikes on Ukraine’s energy infrastructure, leaving thousands without power, while Ukrainian drones reportedly caused outages in Russia’s Belgorod region.

  • Ferrexpo Threatens Legal Action Against Ukraine Over Mine Nationalization

    Ferrexpo Threatens Legal Action Against Ukraine Over Mine Nationalization

    London-listed mining giant Ferrexpo is preparing for a legal battle with Ukraine over the government’s plan to partially nationalize the Poltava mine. The mine, located 200 miles southwest of Kyiv, is Ferrexpo’s primary asset, making it the world’s third-largest exporter of iron pellets.

    The dispute arises from Ukraine’s crackdown on oligarch Kostyantyn Zhevago, who owns 49.5% of Ferrexpo. Zhevago, currently under investigation for alleged embezzlement linked to the collapse of his bank in 2015, has been targeted by Kyiv’s efforts to reclaim lost funds. After failing to seize his stake through the London courts in 2023, Ukraine is now attempting to take a direct stake in the mine.

    Ferrexpo argues that this move violates Ukraine’s bilateral investment treaty with the UK. The company has formally notified Ukraine that if the nationalization proceeds, it will initiate international arbitration. Chairman Lucio Genovese warned that such actions could deter foreign investment in Ukraine’s post-war recovery.

    The Ukrainian government has not yet responded to requests for comment. With major investors such as BlackRock, Fidelity, and JPMorgan involved, the outcome of this legal standoff could have significant implications for Ukraine’s economic future.

  • Ukraine Reviews U.S. Minerals Deal Amid Concerns Over Economic Sovereignty

    Ukraine Reviews U.S. Minerals Deal Amid Concerns Over Economic Sovereignty

    President Volodymyr Zelenskiy has stated that Ukraine will not accept any mineral rights agreement that jeopardizes its integration with the European Union. However, he refrained from immediate judgment on a proposed minerals deal from the United States, which reportedly demands control over Ukraine’s natural resource income until wartime aid is repaid with interest.

    Speaking at a press conference, Zelenskiy emphasized that Kyiv’s legal experts must thoroughly analyze the proposal before issuing an official stance. Deputy Prime Minister Yulia Svyrydenko echoed this sentiment, stating that a consensus was required before public discussion. Senior presidential advisor Mykhailo Podolyak confirmed that negotiations are ongoing, with no finalized draft in place.

    The latest U.S. proposal, according to sources familiar with the negotiations, includes a joint investment fund managed by the U.S. International Development Finance Corporation. The fund, which would oversee Ukraine’s resource revenues, would be governed primarily by American-appointed board members and see profits converted into foreign currency and transferred abroad.

    Zelenskiy acknowledged Washington’s shifting demands, maintaining that while he is open to cooperation, he will not sign a deal that would harm Ukraine’s economy. With negotiations still in progress, the government remains cautious about making any premature commitments.

  • President Zelenskiy Reveals US Proposed “Large, Comprehensive” Minerals Deal

    President Zelenskiy Reveals US Proposed “Large, Comprehensive” Minerals Deal

    Kyiv, Ukraine – Ukrainian President Volodymyr Zelenskiy announced on 25 March that the United States has presented a significantly expanded proposal for a minerals deal, moving beyond the initial framework agreed upon last month. This development follows President Donald Trump’s recent public statement indicating an imminent agreement between the two nations.

    The new proposal comes after a previously planned deal was derailed in February following a tense exchange between Trump and Zelenskiy at the White House. While the specific details of this “large, comprehensive agreement” remain confidential, Zelenskiy confirmed that it excludes US involvement in Ukraine’s nuclear power sector, a point previously raised by Trump.

    “Previously, we had a framework agreement, followed by the development of a full agreement. Now, the American side has proposed a grand agreement right away,” Zelenskiy stated to reporters.

    A Ukrainian official, speaking to the Financial Times, clarified that while the nuclear issue was discussed, it was ultimately omitted from the current proposal. Zelenskiy had previously acknowledged discussions regarding the Zaporizhzhia nuclear power plant, Europe’s largest, currently under Russian control, but maintained that these talks did not progress further.

    A US Treasury spokesperson, in a statement to the Financial Times, reiterated, “The United States remains committed to the quick conclusion of this vital agreement and to securing a lasting peace for both Ukraine and Russia.”

    The initial framework agreement outlined a fund where Ukraine would contribute 50% of future profits from the extraction of state-owned natural resources. Reports suggest that Ukraine possesses mineral deposits valued at upwards of $10 trillion, including crucial rare earth elements used in defense and high-tech industries. However, the economic viability of these deposits is yet to be internationally validated. Ukrainian data indicates the country holds deposits of 22 of the 34 minerals identified by the European Union as critical.

    This expanded proposal signifies a potential shift in the strategic partnership between the US and Ukraine, particularly concerning critical mineral resources, amidst ongoing geopolitical tensions in the region. The full implications of this “large, comprehensive” deal are expected to unfold as further details are released.