Habemus Deal – not really: US, Ukraine to wait Decades or more to see Revenue from Minerals Deal

There’s indeed not much about this Minerals Deal.

1. It’s only a general agreement. The so called technical parts are not signed. The devil lies in the details.

2. The Deal is about an investment company owned equally by the US and Ukraine. Not yet about resources or money.

3. Ukraine’s active resources are owned today by someone else: oligarchs, foreign investors. Untapped resources have not been investigated and bear an investment risk. The good stuff is already sold.

4. 40% of resources are located in Russian occupied territories. Much more nearby and easily reachable by the Russian army.

5. Without certain peace, no investor will send money to Ukraine for mining.

6. All that paperwork is not yet ratified by the Ukrainian Parliament.

7. Doing business in Ukraine is not easy. A corrupt, lawless country with a criminal elite and oligarchy. Foreign investments are less than secure.

As consequence, this Deal is not a deal. It’s another kind of a declaration of intent. There is no obligation to invest or to transfer assets. There is no action plan, no obligations whatsoever. The parties, for sure, will not see returns within decades, if ever.

This Deal will have no political consequences, Russia will not consider it as relevant and for Ukraine it does not represent any protection. The idea of an US takeover would be wonderful for the Ukrainian people, such takeover would protect Ukraine against its elite, the corrupt political and oligarch class. Nonetheless, it is this class which has been hired by Biden to run Biden’s war against Russia, the political and oligarch class are in power over the people in Ukraine, paid first by Biden, now by Europe, and they are the hopeful beneficiaries of the conflict and soon of the reconstruction and redistribution.