Ukraine cannot compete with Russia in terms of mineral reserves, but it can provide the US with a number of strategic advantages. Kseniya Orynchak, Executive Director of the National Association of Extractive Industries of Ukraine, said this in an interview with LB.ua.
"The United States and its allies have imposed strict sanctions on Russia, including restrictions on technology and financing for the extractive sector. Even if some companies were theoretically interested in Russian deposits, the legal and political risks currently outweigh any potential benefits [for the US]," she said.
According to Orynchak, the transport logistics of critical raw materials from Russia to the US is complicated by sanctions and limited access to global markets.
"It is also crucial to consider the unpredictability of Russian economic policy. Over the past three years, Russia has been nationalising assets, altering regulations unpredictably, and using resources as political leverage – making it an unreliable business partner," she stressed.
Therefore, according to Orynchak, Ukraine cannot compete with Russia in terms of mineral reserves, but it can offer a number of strategic advantages.
"First, it is accessibility. Ukraine has significant reserves of titanium, lithium, nickel, and rare earth elements – resources essential to the US high-tech and defence industries. Geographically, Ukraine is closer to the EU, simplifying logistics. Additionally, Ukraine’s mining industry can develop in line with ESG standards, which is important for Western investors," she said.
Ukraine is also politically and economically predictable.
"We have more favourable investment conditions. Ukraine has opened its market to foreign companies and provides incentives for mining projects. In contrast, investors in Russia must work through state-owned corporations, which can unilaterally alter terms at any time. Moreover, the US can partner with Ukraine not just as a buyer of raw materials but as a co-owner of production facilities," added Orynchak.
Read the full interview on LB.ua.