On Friday, the State Department gave the green light for F-16 fighter jet training, maintenance, and equipment for Ukraine. This marks the first deal related to a recent agreement concerning mineral rights.
With Ukraine’s purchase of $310 million in equipment and services, the U.S. stands to earn credits in investment funds connected to the mineral trade, as noted on Wednesday. Here, profits are divided evenly.
The purchases encompass various aspects, such as training for aircraft modifications and upgrades, operational support, spare parts, consumables, and access to classified software and technical documentation. The DSCA outlined these details in a statement.
Earlier, Ukraine received an F-16 from NATO along with advanced weapons from the U.S. last July.
The agency remarked that this proposed sale aligns with both foreign policy goals and U.S. national security aims, enhancing partner nations’ security and supporting European political stability and economic growth.
Moreover, the DSCA indicated that these sales will bolster Ukraine’s capacity to handle current and future threats by effectively training pilots and fostering better interoperability with the U.S. through extensive collaboration with the U.S. Air Force. They added that this initiative fits with the broader UN strategy to develop Ukraine’s F-16 program and modernize its Air Force.
The investment funds—projected to generate revenue from the sale of oil, gas, and minerals in Ukraine—create a novel avenue for the U.S. to deliver arms and military supplies to Kyiv, without tapping into taxpayer money. It’s a bit… unconventional, right? But it seems to be a new strategy in play here.
Interestingly, the Mineral Trade stipulates that should the U.S. government provide additional military aid to Ukraine—whether it’s weapons, technology, or training—the contributions made by American partners will increase in value accordingly. It’s still unclear, though, if both sides will need to contribute further to the fund.
