Ukraine and the US sign an agreement on minerals
1 May 01:20
Ukraine and the United States have signed an agreement on mining. The Minister of Economy of Ukraine Yulia Svyrydenko, who is in the United States, announced this on Facebook, [ komersant] reports
“Together with U.S. Treasury Secretary Scott Bessant, I signed an agreement on the establishment of the U.S.-Ukraine Reconstruction Investment Fund,” she said.
The agreement stipulates that Ukraine and the United States will create an Investment Fund for the reconstruction of Ukraine, which will attract global investment.
Svyrydenko outlined the main provisions of the signed agreement:
- “Full ownership and control remain with Ukraine.
All resources on our territory and in our territorial waters belong to Ukraine. It is the Ukrainian state that determines where and what to extract. Subsoil remains in Ukrainian ownership – this is enshrined in the agreement.
- Equal partnership.
The Fund is being created on a 50/50 basis. We will manage this Fund jointly with the United States. Neither party will have a majority vote, and this will reflect the equal partnership between Ukraine and the United States.
- National property is protected.
The agreement does not change the privatization process or the management of state-owned companies – they will continue to belong to Ukraine. Companies such as Ukrnafta or Energoatom remain in state ownership.
- No debts.
The agreement does not mention any debt obligations of Ukraine to the United States. Implementation of the agreement will allow both countries to increase their economic potential through equal cooperation and investment.
The agreement is in line with the Constitution and does not change Ukraine’s European integration course.
The document is consistent with national legislation and does not contradict any of Ukraine’s international obligations. It is important that the agreement will signal to other global players that it is reliable to cooperate with Ukraine in the long term – for decades.
- The Fund will be filled with revenues exclusively from NEW licenses.
We are talking about 50% of the funds from new licenses for projects in the field of critical materials and oil and gas that will go to the budget after the Fund is created. Revenues from projects already launched or budgeted revenues are not included in the Fund. The agreement refers to further strategic cooperation.
- Legislative changes are only point changes.
Only amendments to the Budget Code are envisaged for the Fund to function. The Agreement itself must be ratified by the Verkhovna Rada.
- The US will help attract additional investments and technologies
The Fund is supported by the U.S. government through the DFC agency, which will help us attract investment and technology from funds and companies in the U.S., the EU and other countries that support our fight against the Russian enemy. Technology transfer and development is an important component of the Agreement, as we need not only investment but also innovation.
- The Agreement provides tax guarantees
The Fund’s income and contributions are not taxed in the United States or Ukraine, so that investments can yield the greatest possible results.
How will the Fund work?
The United States makes a contribution to the Fund. In addition to direct funds, they can also contribute NEW assistance, such as air defense systems for Ukraine.
Ukraine contributes 50% of the state budget revenues from NEW royalties on NEW licenses for NEW fields. Ukraine can also make additional contributions beyond this basic one, if it deems it necessary. We are talking about cooperation for decades to come.
The Fund then invests in mining and oil and gas projects, as well as related infrastructure or processing. Ukraine and the United States will jointly determine the specific investment projects to which the funds will be allocated. It is important that the Fund can invest exclusively in Ukraine.
“We expect that for the first 10 years, the fund’s profits and revenues will not be distributed, but can only be invested in Ukraine – in new projects or reconstruction. These conditions will be discussed further,” Svyrydenko explained.
“We have formed a version of the agreement that provides mutually beneficial conditions for both countries. This is an agreement in which the United States notes its commitment to help achieve long-term peace in Ukraine and recognizes the contribution that Ukraine has made to global security by giving up its nuclear arsenal. The agreement also recognizes the U.S. commitment to Ukraine’s security, recovery and reconstruction,” Svyrydenko said.
Follow us on Telegram: main news in brief
