The Ukrainian-American Investment Fund, which is being established under the subsoil agreement with the U.S., may face significant challenges at the start of its operations. Experts note that the process of preparing the necessary documentation for the development of deposits will require at least five years.
This is reported by Finway
Time and Resource Expenditures for Geological Exploration
At the initial stage, investors will need to finance additional geological exploration work, as most materials obtained during the Soviet era have either been lost or are only preserved in paper documentation. This significantly complicates the process of preparing a complete set of documents for the development of deposits.
“Any deposit will need to be drilled further to obtain a sufficient number of samples and subsequently assess the reserves accurately according to international standards,” added Shumskiy.
Requirements for the Feasibility Study and the Role of the State
In addition, investors will need to create what is known as a “bankable feasibility study,” which will serve as an evaluation object for Western investors. This document must contain verified information about geological reserves, technical extraction capabilities, economic efficiency, and the environmental sustainability of the project.
Meanwhile, Ukrainian state authorities must ensure favorable conditions for subsoil users so that they can adequately prepare all necessary documentation for the development of specific deposits. According to experts’ estimates, this preparatory stage alone will take no less than five years. Only after its completion will investors be able to start seeking financial partners for further capital investment in industrial extraction projects, the construction of quarries, or enrichment plants.