The US-Ukraine mineral deal does not specify whether Washington will benefit

According to a draft of the agreement that is expected to be signed on Wednesday, Washington will have preferential access to any new natural resource deals in Ukraine, but it won't automatically give Washington a piece of Ukraine's gas infrastructure or its mineral wealth.

The draft outlines the creation of an American-Ukrainian joint fund for reconstruction that will receive 50% from profits and royalties accruing the Ukrainian state as a result of new natural resource permits in Ukraine.

The document states that future U.S. military aid to Ukraine will be counted towards the U.S. contribution for the joint fund.

The draft doesn't specify how the funds revenues will be used, who will benefit, or who is in charge of the decisions.

The draft states that the United States or any other entity it designates will have preferential access, but not exclusive, to new permits, licences, and investment opportunities within the Ukrainian natural resource sector. The draft does not cover existing deals.

Sources with knowledge on the subject said earlier this month that previous iterations of a deal had stated it would include Ukrainian gas infrastructure. This is one of Ukraine’s most valuable assets.

The draft that was seen on Wednesday does not include gas infrastructure.

Sources had said that in previous iterations, the United States had been given control over how the joint fund revenue would be spent and, therefore, could receive royalties and profit from Ukraine's natural resource.

This was not included in the draft agreement that was to be signed on Wednesday. (Reporting and editing by Christian Lowe; Tom Balmforth)

(source: Reuters)