Ukraine war briefing: Ukrainian leaders lay out details of long-awaited minerals deal with US

01 May, 00:06. AU edition

A shockwave is seen as a Ukrainian tank crew fire a round from a Leopard 2A4 tank during a field training exercise. Photograph: Genya Savilov/AFP/Getty Images

Ukrainian prime minister Denys Shmyhal says a new reconstruction and investment fund will be split 50-50 between his country and the US. What we know on day 1,163

Kyiv and Washington have signed a deal that would share future revenues from Ukraine’s minerals, with the US to keep military aid flowing to the country, as well as US investment into its defence and reconstruction. Ukrainian prime minister Denys Shmyhal shared details of the deal, saying a new reconstruction and investment fund would be split 50-50 between Kyiv and the US, and give each side equal voting rights.
The deal would relate only to new investments, Shmyhal said, meaning it would not provide for any debt obligations against Ukraine, a key concern for Kyiv. Ukraine would retain “full control over its mineral resources, infrastructure and natural resources,” Shmyhal added. The deal would ensure revenue by establishing contracts on a “take-or-pay” basis, Shmyhal said.
Ukraine’s first deputy prime minister, Yulia Svyrydenko, said there would be no changes to ownership of state-owned companies, including Ukrnafta, Ukraine’s largest oil producer, and nuclear energy producer Energoatom. Income and contributions to the fund would not be taxed in the US or Ukraine, she said, “to make investments yield the greatest results”.
Meanwhile, Vladimir Putin said some small groups of Ukrainian soldiers were still holed up in basements and hideouts in Russia’s western Kursk region. Speaking at an event in Moscow on Wednesday, the Russian president claimed radio intercepts suggested that the few Ukrainians left behind were asking commanders to evacuate them.
The EU is preparing a “plan B” on how to keep economic sanctions against Russia should the US abandon Ukraine peace talks and seek rapprochement with Moscow, according to the bloc’s top diplomat, Kaja Kallas. “We see signs that they are contemplating whether they should leave Ukraine and not try to get a deal with the Russians because it’s hard,” Kallas told the Financial Times.
The Kremlin claimed Putin was open to peace despite its continuing aggression on Ukraine, but stressed that the conflict is so complicated that the rapid progress that Washington wants is difficult to achieve, Reuters reported.
Russia and North Korea have begun construction of a road bridge between the two countries as part of an effort to strengthen their strategic partnership, Russia’s prime minister, Mikhail Mishustin, said. It comes after South Korean lawmakers said about 600 North Korean troops have been killed fighting for Russia against Ukraine.