‘Rare earths’ story should end, Ukraine needs to focus on issues that matter

The agreement on rare earth metals, which just a few weeks ago was presented as a technical arrangement, has since transformed into a project to create a major American investment fund with Ukraine’s participation. However, analyzing this agreement at this moment makes little practical sense for one simple reason—it simply does not exist.

Several versions of the document have been published in the media, varying in page count and other details. Yet they all share one common feature—a complete absence of key details that are truly important for us. The annexes, where specific contribution amounts from the U.S. and Ukraine should be listed, contain only blank spaces. There is no clarification regarding which specific minerals or infrastructure projects the agreement covers.

In other words, this is still a very raw document about establishing an investment fund under American law, which, in theory, should become the subject of negotiations between Ukraine and the U.S. Foreign Minister Andriy Sybiha has already confirmed that such negotiations are underway.

Potentially, this agreement could be valuable for Ukraine. If everything follows the right course, it could bring major American businesses to our country, managing investments in Ukrainian infrastructure and the extractive industry. Along with American capital, we could also see improvements in management standards, investor protections, and the rule of law. After all, no credible company will invest in a weak, corrupt country where any official can block international business with a single decision, and where criminal investigations are often just a tool for corporate raiding.

But the risks are also clear.

No agreement can contradict Ukrainian law or the European integration process. Infrastructure projects and the extractive industry are strictly regulated by EU legislation. So if the new American agreement conflicts with European directives, it will become a significant obstacle to our European integration. 

The European Commission has already stated that it will review this agreement for compliance with EU law. Moreover, the irreversibility of Ukraine’s European integration course is enshrined in the Constitution of Ukraine.

Once again, we see the chronic problem of the Ukrainian government—the lack of systematic communication with society on important issues. There is no explanation of what exactly is being discussed in the agreement, what interests Ukraine has, or what red lines are being drawn. There is no explanation for either the public or for our European partners, who also do not yet know how to react to our "rare earth news."

It is evident that this situation is becoming increasingly absurd. 

At a time when Kharkiv, Dnipro, Sumy, and Kherson are under daily attack, and when reports of the dead and wounded continue to flood the news, discussing the periodic table and Delaware corporate law sounds, at the very least, ridiculous. 

Therefore, in my opinion, this "rare earth" story should be concluded as soon as possible, and attention should be focused solely on the issues that truly matter to Ukraine — resisting Russian aggression, supporting the Ukrainian army, and expanding our circle of allies.

Source

About the author. Mykola Kniazhytskyi, journalist, Member of the Ukrainian Parliament.

The editorial team does not always share the opinions expressed by blog or column authors.