Reuters news agency draws attention to the fact that profits from the so-called "subsoil deal" between Ukraine and the United States may not arrive for at least 10 years. According to journalists, obtaining financial benefits will be extremely difficult due to the war, infrastructure destroyed by Russia, and the lack of geological research.
Points of attention
- Geological studies are crucial for determining the economic viability of subsoil deposits in Ukraine, which still lack comprehensive research and evaluation.
- Investing in Ukraine's mineral resources poses significant challenges, with concerns raised about justifying investments amid war-related uncertainties and the availability of alternatives in stable countries.
Implementing the subsoil agreement will not be easy
To realistically assess the prospects for Ukraine and the United States, journalists spoke with a number of experts in this field.
According to the latter, development in countries with a developed mining sector, such as Canada or Australia, takes from 10 to 20 years.
As for Ukraine, this period may be even longer due to the large number of challenges.
First of all, of course, we are talking about the war that Russia has been waging against Ukraine for over 11 years.
We also cannot ignore the fact that energy, transport, and logistics infrastructure has suffered significant damage.
Moreover, experts warned that most deposits still do not have full-fledged geological studies that would confirm the economic feasibility of their development.
There can also be serious problems with investments.
Adam Webb, head of minerals at the consulting company Benchmark Minerals Intelligence, made a statement on this occasion.
"If anyone thinks that all these minerals will suddenly start being exported en masse from Ukraine, then this is an illusion. The reality is that people will find it difficult to justify investing in Ukraine when they have alternatives — investing in critical minerals in countries where there is no war," the expert emphasized.
