Minerals deal with Washington 'truly equal': Zelensky

KYIV — Ukraine's President Volodymyr Zelensky said on Thursday a landmark minerals deal with the United States offered "equal" benefits for both sides even though the accord offered no concrete security guarantees for Kyiv.

Russia later launched a large-scale drone attack on the central industrial city of Zaporizhzhia, wounding 29 people after Zelensky urged allies to step up pressure on Moscow.

The agreement, which has taken months to negotiate, would see Washington and Kyiv jointly developing and investing in Ukraine's critical mineral resources.

The agreement "changed significantly" during negotiations, Zelensky said in an address.

"Now it is a truly equal agreement that creates an opportunity for quite a significant investment in Ukraine.

"There is no debt in the deal, and a fund — a recovery fund — will be created that will invest in Ukraine and earn money here."

Ukraine's parliament will hold a vote on Thursday to ratify the deal.

Under the agreement, Ukraine and the US will establish a joint Reconstruction Investment Fund.

Profits from the agreement will be invested exclusively in Ukraine for the first 10 years, after which profits "may be distributed between the partners", Kyiv said.

The financial payoff is likely to take a decade or longer, as investors face many hurdles to get new mines into production in Ukraine.

Developing mines that produce strategically important minerals in countries with established mining sectors can take 10 to 20 years, mining consultants said on Thursday.

However, most mineral deposits in Ukraine have scant data to confirm they are economically viable. Investors may also baulk at funneling money into a country where infrastructure has been devastated by the three-year-old conflict and future security is not guaranteed.

"If anyone's thinking suddenly all these minerals are going to be flying out of Ukraine, they're dreaming," said Adam Webb, head of minerals at consultancy Benchmark Mineral Intelligence in London.

"The reality is it's going to be difficult for people to justify investing money there when there are options to invest in critical minerals in countries that are not at war."

The text of the deal details 55 minerals plus oil, natural gas and other hydrocarbons.

"The transition from a discovered resource to an economically viable reserve requires significant time and investment, both of which have been constrained, not only since the onset of the war but even prior to it," said Willis Thomas at consultancy CRU.

The deal does not give any specific US security guarantees, but Washington says boosting its business interests in Ukraine will help deter Russia.

Meanwhile, French Foreign Minister Jean-Noel Barrot told AFP on Thursday that the European Union is preparing a 17th round of sanctions against Russia, describing Russian President Vladimir Putin as the "sole obstacle" to peace in Ukraine.