Today's Contents
Reporter's Notepad:
- Titanium miner Velta says it's in talks with EBRD, EIB, DFC to create a CRM 'cluster' in Ukraine after the war
Just The Facts:
- US, Ukraine plan to move ahead with minerals deal, sources say
- European Commission proposes €800 billion defense spending plan
- Europe's major powers back seizure of €200 billion in frozen Russian assets amid ceasefire plans, FT reports
- Romanian transport minister says Port of Constanta should become main logistics hub for Ukraine's reconstruction
Here's What They Think:
- USA Today: Trump's aggressive approach may be the best way to end Russia's war in Ukraine
- NYT: Trump is hiding something on Ukraine
Sober Second Thought:
- After the Zelensky-Trump breakdown, the Washington, DC-based Stimson Center think tank mulls four possible futures for Ukraine
Dear subscribers,
URN Daily attended a meeting yesterday organized by the US-Ukraine Business Council (USUBC) and New York-based communications firm Burson about the reconstruction of the energy sector in Ukraine. While many points made were of interest, the part that stood out actually pertained to critical raw materials.
We've prepared the following news story based on information disclosed at the event:
Titanium miner Velta says it's in talks with EBRD, EIB, DFC to create a CRM 'cluster' in Ukraine after the war
US-based titanium miner Velta aims to create a "cluster" in Ukraine for mining and processing critical raw materials when the war ends and is in talks with several private investors and international finance institutions for backing, a senior company official said.
Matthew Murray, chairman of the board of advisers of US-based Velta Holding, the parent of Ukraine-based Velta Llc, said his company is already creating a "vertically integrated structure" in Dnipro in eastern Ukraine to mine and process titanium.
From there, the company could create a "cluster" for titanium operations as well as for the processing of other critical raw materials (CRM), he said.
Ready for rapid expansion
"We envision creating a titanium cluster because as we mine the titanium, the critical raw materials in our mines could form a cluster, more broadly, for other CRM," he said during an online meeting Tuesday hosted by the US-Ukraine Business Council (USUBC) and New York-based communications firm Burson.
He said Velta is in talks with the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the US Development Finance Corporation (DFC), as well as several private investors, for financing to be ready for rapid expansion in Ukraine when the war ends.
"We could quickly work, given our resilience as a company, to leverage that moment in time to begin to expand and be more vertically integrated, and include other CRM in our in our portfolio," he said.
Murray added that Velta in Ukraine has already gone beyond just mining titanium and has started using patents held in both the US and Ukraine to create new products.
"So we are not only mining and producing titanium feedstock, we are turning that feedstock into powder and then creating prosthetic parts for veterans returning from the war," he said. "So we have a new startup devoted to creating state-of-the-art, titanium based prosthetics for veterans."
'Ukrainium'
The company has said it is using a low-temperature process for titanium production that involves treating mined ilmenite with a chemical solution to form a patented titanium dioxide variant, i-synrutile, which is then processed into a metal powder the company calls "Ukrainium." Ukrainium is then used in the production of the metal parts for prosthetics.
Murray added that Velta has recommended that the US and Ukraine create a "sustainable bilateral partnership to develop the CRM sector in Ukraine," starting with a survey of existing resources by the US Geological Survey and the Ukraine geological institutes.
"An updated, upgraded survey that provides the right data for all private sector participants is obviously a key node in any market-based development of the critical raw material sector," he said. "Companies will require the best available information to begin to consider whether to to add their know-how and capital into the sector."
For questions related to daily news, story suggestions, scoops and other newsy matters, please message URN newsroom chief Valentina Bajic at valentina@ukrainerebuildnews.com.
For sponsorships, the URN Guidebooks, the Tips for Investors column and other general matters, email founder Adam Brown at adam.brown@ukrainerebuildnews.com.
If in doubt, email us both and we'll sort it out.
Now, on with the headlines of the day ...
US and Ukraine plan to move ahead with minerals deal, sources say
The US and Ukraine plan to move ahead with signing a proposed deal to jointly develop Ukraine's minerals resources, Reuters reported, citing four unnamed sources familiar with the matter.
The sources, however, cautioned that the deal had not yet been signed and the situation remained fluid, Reuters reported.
The agreement was initially set to be signed during Ukrainian President Volodymyr Zelensky's visit to Washington on Friday last week. The deal was, however, put on hold after a contentious exchange between Zelensky and US President Donald Trump in the Oval Office.
During the meeting, Trump accused Zelensky of ingratitude for US support and unwillingness to end the war with Russia, while Zelensky pushed back, questioning Trump's stance on Russian President Vladimir Putin.
In recent days, US officials have discussed the minerals deal with their counterparts in Kyiv despite Friday's fallout and have urged Zelensky's advisers to persuade the Ukrainian president to issue a public apology to Trump, an unnamed source familiar with the matter told Reuters.
In a post on X on Tuesday, Zelensky said Ukraine was ready to sign the minerals deal "in any time and in any convenient format," adding: "We see this agreement as a step toward greater security and solid security guarantees, and I truly hope it will work effectively."
Zelensky also wrote that the meeting with Trump in the White House did not go as planned. "It is regrettable that it happened this way. It is time to make things right. We would like future cooperation and communication to be constructive," he noted.
The US and Ukraine have previously agreed on the broad terms of a deal that envisions the establishment of a fund into which Ukraine would contribute 50% of proceeds from the "future monetization" of state-owned mineral resources, including oil and gas, and associated logistics.
The agreement, however, does not specify any security guarantees the US would provide to Ukraine, which was one of the main reasons Zelensky rejected earlier versions of the agreement.
It is unclear whether any changes to the agreement have been made in the meantime.
In an interview with Fox News on Monday, US Vice President JD Vance said that giving the US economic interest in Ukraine would serve as a security guarantee.
European Commission proposes €800 billion defense spending plan
European Commission President Ursula von der Leyen on Tuesday unveiled a five-part "Rearm Europe" plan to mobilize €800 billion to enhance Europe's defense capabilities and provide military aid to Kyiv.
Firstly, she proposed a new financial instrument worth €150 billion to provide EU member states with loans backed by the EU budget for defense-related investments.
This includes air defense systems, artillery, missiles and ammunition, drones, anti-drone systems, and joint arms procurement, among others, von der Leyen explained.
The plan also envisages unlocking public funds to bolster national defense investments.
"Member states are prepared to invest more in defense, provided they have the fiscal flexibility. Our role is to enable this. Therefore, we will offer the option to temporarily bypass the Growth and Stability Pact, allowing countries to boost defense spending without triggering the excessive deficit procedure," von der Leyen said.
Von der Leyen said that, if European Union member states increase defense spending by an average of 1.5% of GDP, it could generate approximately €650 billion over the next four years.
The remaining three parts of the plan include allowing EU member states to use funds received from the EU's cohesion programs—intended to equalize living standards across Europe— for defense purposes; strengthening the role of the European Investment Bank in defense funding, and mobilizing private capital.
The European Council, made up of the heads of state or governments of the EU's member states, will hold an emergency meeting on Thursday to discuss the proposal as well as the situation in Ukraine.
"We in Europe are very appreciative of the support of the United States and the role it has played in European security for decades … But the context in which we are living is changing drastically and dramatically," von der Leyen wrote in a letter to the European Council ahead of the Thursday meeting.
"The foundations on which the whole postwar European political and economic order were built are being shaken to their core," she wrote. "And when the European order is shaken, the history tells us that the whole international system can be destabilized."
Von der Leyen announced her plan, which has been in the works for weeks, a day after US President Donald Trump reportedly paused all military aid to Ukraine.
Europe's major powers back seizure of €200 billion in frozen Russian assets amid ceasefire plans, FT reports
Europe's major powers are rallying behind efforts to seize over €200 billion in frozen Russian assets as they work on a ceasefire deal for Ukraine, with France and Germany, previously resistant to a full-scale asset seizure, now in talks with the UK and other nations on potential ways to utilize these funds, the Financial Times reported.
French officials have explored a proposal for European capitals to seize Russian assets if Moscow breaches a future ceasefire in Ukraine, according to three unnamed sources familiar with the discussions who spoke to FT, as part of broader efforts to provide security guarantees to Kyiv.
Two of the sources familiar with the French proposal told the FT the proposal had been positively received by other European allies, but noted that it was far from being finalized.
In 2022, G7 allies froze approximately €300 billion in Russian Central Bank assets following Moscow's full-scale invasion of Ukraine. The bulk of it—around €190 billion—is held in Belgium's central securities depository, Euroclear, while smaller amounts are stored in France, the UK, Japan, Switzerland, and the US, according to the report.
Currently, the income from these assets, primarily cash and government bonds, is being used to repay G7 nations for $50 billion in loans to Ukraine. However, the core assets themselves remain untouched.
Although Ukraine, Poland, and the Baltic States, among others, have long urged for the seizure of the underlying assets, countries such as Germany and France have so far resisted the calls, citing legal risks.
On Sunday, European countries including the UK and France, agreed to work together with Ukraine to draft a ceasefire plan, which would then be discussed with the US.
Romanian transport minister says Port of Constanta should become main logistics hub for Ukraine's reconstruction
Romania's Transport and Infrastructure Minister Sorin Grindeanu said on Tuesday that the country's Black Sea port of Constanta should become a main logistics hub for Ukraine's reconstruction, as quoted by local news agency Agerpres.
Speaking at a press conference at the port, Grindeanu said US involvement in the reconstruction of Ukraine is necessary, adding that the US also has an interest in having a "favorable environment" at the Port of Constanta.
In addition, Grindeanu pointed out that Romania is the EU country with the longest border with Ukraine.
"I expect this period of reconstruction to be one where the US … will be the main engine. Of course, we, through what we can offer, because of Romania's strategic position, will also play a role," Grindeanu said.
According to Grindeanu, the US military base in Constanta County is another strategic asset in transforming the Port of Constanta into a logistics hub for the reconstruction of Ukraine.
Following the Russian invasion of Ukraine in 2022, the Port of Constanța became an essential alternative route for Ukrainian grain exports. Recent data, however, indicates a significant decline in this trade. Between January and November 2024, the port handled 6 million tons of Ukrainian grain, down 54.5% compared to the same period in 2023, according to Ports Europe.
This downturn is largely attributed to the reopening of Ukraine's Black Sea ports, which had previously been blocked by the Russian Navy.
In response to the developments in Ukraine, Romania has initiated infrastructure enhancements to bolster Constanta's capacity. In October 2024, the Romanian government approved $162.5 million in funding for the upgrade of rail infrastructure at the port, aiming to establish a secondary railroad access point, Reuters reported at the time.
USA Today: Trump's aggressive approach may be the best way to end Russia's war in Ukraine
US President Donald Trump's aggressive approach to Ukrainian President Volodymyr Zelensky may have angered many people, but it might be the best way to quickly end a war that has killed hundreds of thousands of people, writes USA Today columnist Nicole Russell in an opinion piece.
"I can't blame Zelenskyy for standing up for his country in a war that Russia started. But Trump isn't wrong about the need to finally end that war. And Trump and Vance aren't wrong for signaling that the days of U.S. interventionism around the globe are ending," she wrote.
NYT: Trump is hiding something on Ukraine
Whenever President Donald Trump talks about Ukraine, something always seems missing from his comments, New York Times columnist Thomas Friedman wrote in an opinion piece, giving the example of referring to the deaths of "Ukrainian young people" and "Russian young people" as equivalent.
"How to explain that in Trump’s case? Well, he is either the most pliant Western negotiator against the enemies of liberty since Neville Chamberlain, making concessions to the aggressor before talks have even started, or he actually prefers the friendship of Putin over our European allies and courageous Ukrainian democrats," he wrote.
After the Zelensky-Trump breakdown, the Stimson Center examines 4 possible futures for Ukraine
After the public spat last Friday between US President Donald Trump and Ukrainian President Volodymyr Zelensky, the Stimson Center, a Washington, DC-based think tank, examines four possible futures for Ukraine in a new report.
#1 - Zelensky Caves
In this scenario, according to report authors Mathew Burrows and Julian Mueller-Kaler, political infighting intensifies as Zelensky returns home from the failed meeting, the military prospects for Ukraine deteriorate.
"Growing segments of the Ukrainian elite – political insiders, influential oligarchs, and key business leaders – warn that persisting in a protracted conflict could invite economic collapse. High-level advisors in Zelenskyy’s presidential administration share private assessments that the country cannot survive a prolonged period cut off from robust Western support," in this scenario.
It ends with Zelensky willing to sign "any agreement that ends hostilities and saves the Ukrainian state from collapsing."
#2 - End of the Western Alliance
In this scenario, European nations craft a peace plan and manage to gain minimal support from the United States.
However, "a fragile ceasefire collapses when Russia probes Western resolve, putting the continent on the brink of war and Europeans begging for U.S. help. Back at the negotiation table, Trump compels Ukraine to accept major concessions, infuriating European leaders, who vow to forge an autonomous defense," the authors postulate.
#3 - Vichy
In this scenario, the United States not only halts all aid but also stops sharing intelligence with Ukraine, dealing Ukrainian forces an even more severe setback. Ukraine suddenly faces the peril of sudden loss on the battlefield.
Senior military leaders and the population in general quickly grow fearful and once-loyal members of the upper echelon begin planning to oust Zelensky in a coup. The leaders of the coup, in this scenario, are the ones who opened backdoor channels of communications with Moscow.
"The new regime wastes no time in announcing its intention to negotiate a swift end to hostilities. They denounce Zelenskyy’s leadership as reckless and portray themselves as pragmatists prepared to strike a comprehensive peace deal. The new rulers in Kyiv are the Vichy type puppet regime that Moscow wanted all along."
#4 - Beijing Surprise
After the White House spat, Ukraine resolves to continue on the battlefield, despite the loss of US support and inadequate help from Europe.
However, China steps in as a mediator in the conflict and Zelensky, facing the prospect of defeat, accepts, despite a distrust of China's motives.
"China sweetens the deal by promising extensive economic support and reconstruction funds to Ukraine, tying these, however, to stringent oversight by Chinese financial institutions. While the prospect of rebuilding war-torn cities holds obvious appeal for Kyiv, critics worry about a subtle trade-off: in exchange for immediate relief, Ukraine risks trading a measure of its sovereignty. Chinese experts and investors – ostensibly there to oversee reconstruction – could gain considerable influence over Ukraine’s economy and infrastructure in the long run."
In this scenario, China is the main winner, having gained a considerable amount of influence in Ukraine and a settlement that "deepens the Kremlin’s dependence on Beijing – an irony that some Russian officials lament, recognizing they have traded away their independence for becoming China’s vassal."
700-Person Event in Milan Today to Prepare for URC
The Italian Ministry of Foreign Affairs announced it's holding an event in Milan today with 700 participants from Italy, Ukraine and 22 other countries, including 550 entities, to prepare for the July 10-11 Ukraine Recovery Conference in Rome.
"The event aims to mobilize the private sector for the reconstruction of Ukraine and for a sustainable economic recovery, based on the 'building back better' approach. The private sector plays a key role in this process, and the event will provide a platform to share opportunities and tools, in view of the Ukraine Recovery Conference in Rome," the ministry said.
Aventures Dealbook 2024 Is Out
Andriy Kolodyuk, chairman of the Ukraine Venture Capital & Private Equity Association, announced the publication of the Aventures Dealbook 2024, which lists funding and M&A deals for all of 2024 and ealry 2025 in the Ukrainian market.
According to the publication, investment volume last year surged 120% yean-on-year to $462 million, defense tech raised $59 million in grants and PE and a record-breaking $50 million in grants was distributed to support innovation.
US Military Aid Freeze May Worsen Refugee Crisis
The US government's freeze on military aid to Ukraine may cause a new exodus of refugees and discourage refugees already abroad from returning to Ukraine, said Olga Tokariuk, a Chatham House academy associate and researcher, in a LinkedIn post, reproducing her comments to LBC News.
"As emerges from my research, an improved security situation is the top priority for Ukrainian refugees’ return. Now, as hope for more protection for Ukrainian skies is shattered and the country’s survival hangs in a balance, their intentions to return, already declining after three years of full-scale war, will surely drop even further."
European Business Meets Taiwanese Business in Lviv
EBA Lviv, the western Ukrainian office of the European Business Association, recapped a meeting with Hsieh Ho-Kun, director of the Taiwan Trade Center, Kyiv, to discuss strengthening trade ties between Ukrainian and Taiwanese companies.
The conversation focused on helping small and medium-sized enterprises through collaborative initiatives, conducting joint visits, fostering dialogue between the business communities and uHelping Ukrainian companies access the Taiwanese market as a reliable partner for raw materials and components."
Ivano-Frankivsk Industrial Park Enters National Register
UkraineInvest, the state investment promotion agency, announced that the government has included Burshtyn Industrial Park, in the western region of Ivano-Frankivsk, in the national register of industrial parks.
It said the 20.5 hectare park is expected to focus on textile, food, clothing, machinery and non-metalic mineral manufacturing, as well as wood processing, production of plant-based fabrics, and scientific and engineering activities.
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
