Vasyl Myroshnychenko, Ukraine’s ambassador to Australia, is appealing to Australian miners to invest in Ukraine’s resource sector amid heightening tensions between the US and Ukraine
The request comes as Ukraine seeks ways to fund its three year defense against Russia’s invasion, an effort that became more dire this week as US President Donald Trump paused all aid to the country on Monday (March 3).
The US head of state made the decision after negotiations between the two countries broke down on February 28 while Ukrainian President Volodymyr Zelenskyy was visiting the White House to pen a deal regarding mineral rights for US security.
During the televised meeting between Trump, US Vice President JD Vance and Zelenskyy, a heated exchange ensued, turning the formal conversation into finger pointing and a series of accusations.
Ukraine welcomes Australian mining investment
According to the Nightly, Myroshnychenko said Russia is looking to break the bond between the US and Europe.
“If Russia achieves what they want, that would be a world of chaos … where might is right, where the stronger one will have the power and in this world, Australia has no chance of surviving,’ he said.
“There is a moral argument in terms of security, democracy and helping Ukraine, helping the underdog who’s been bullied; it’s all valid but I think we have to talk about money,” Myroshnychenko continued.
He opened the invitation to non-mining companies as well, noting, “This is an opportunity for Australian companies, for mining companies, to come and invest in Ukraine together with American companies.”
Australia’s support of Ukraine
Australia and Ukraine have a long history of cooperation and allyship.
The country supplied uranium to Ukraine in 2016 via an agreement where Ukraine joined other countries in a pact with Australia, ensuring that uranium obtained from Australia is designated strictly for peaceful uses.
A Nuclear Cooperation Agreement with Ukraine was announced in 2017 by Julie Bishop, then the country’s foreign affairs minister, enabling Australia to export uranium to Ukraine and enhance cooperation between the countries on activities such as nuclear safeguards, security, safety and science.
During Ukraine’s defense against Russia, Australia has assisted Ukraine by offering cash and resource support.
In 2022, the Australian mining sector and the federal government joined hands in offering donations.
Australian Resources & Investment notes said that Whitehaven Coal (ASX:WHC,OTC Pink:WHITF) produced 70,000 tonnes of thermal coal to be donated to Ukraine to support its energy security.
Major miners BHP (ASX:BHP,NYSE:BHP,LSE:BHP), Newmont (TSX:NGT,NYSE:NEM) and Anglo American (LSE:AAL,OTCQX:AAUKF), each donated US$5 million at the time for humanitarian relief.
Last October, the Australian government gifted 49 M1A1 Abrams tanks to Ukraine to assist in its fight against Russia’s invasion. This donation was valued approximately AU$245 million.
On the third anniversary of Russia’s full-scale invasion of Ukraine, an announcement by Senator Penny Wong said Australia’s military assistance to Ukraine during that time amounts to over AU$1.3 billion.
In total, the support is valued at over AU$1.5 billion.
“Australia has now imposed a total of more than 1,400 sanctions in response to Russia’s full-scale invasion of Ukraine,” Wong said. “Working with Ukraine and our partners, Australia supports a just and lasting peace for Ukraine.”
Australia seeking rare earths independence
While Myroshnychenko invited broad investment in Ukraine’s resource sector, rare earths may be of special interest to Aussie miners as the country makes moves toward rare earths supply independence.
These include strategies from both the government and mining companies such as Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF), a leading producer of rare earth materials outside of China.
Lynas owns the recently opened Kalgoorlie rare earths processing facility in Western Australia, the country’s first rare earths processing facility and the largest facility outside China.
On February 12, the Australian government passed the Critical Minerals Production Tax Incentive, which will provide a refundable tax credit on 10 percent of eligible costs associated with the production of critical minerals and rare earths.
Federal Resources Minister Madeleine King said the incentives are valued at AU$7 billion over the decade.
“The passing of this legislation is a historic moment for the resources industry and a big deal for resource states like Western Australia and Queensland,” she explained. “By processing more of these minerals here in Australia we will create jobs and diversify global supply chains.”
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.