Ukraine has signed economic agreement with US, - Svyrydenko
Minister of Economy Yulia Svyrydenko and U.S. Treasury Secretary Scott Bessent sign an agreement to establish the U.S.-Ukraine Recovery Investment Fund.
She wrote about this on her Facebook page, Censor.NET reports.
Svyrydenko explained that this agreement provides for the creation of an Investment Fund for the Reconstruction of Ukraine jointly with the United States, which will attract global investment in our country.
Key provisions of the agreement in brief:
1. 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.
2. Equal partnership.
- The fund is being created on a 50/50 basis. We will manage the 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.
3. National property is protected.
- The agreement does not change the privatisation process or the management of state-owned companies - they will continue to be owned by Ukraine. Companies such as Ukrnafta or Energoatom will remain in state ownership.
4. No debts.
- The agreement does not mention any debt obligations of Ukraine to the United States. The implementation of the agreement will allow both countries to increase their economic potential through equal cooperation and investment.
5. The agreement is consistent with the Constitution and does not change the European integration course.
- The document is in line with national legislation and does not contradict any of Ukraine's international obligations. It is important that the agreement will send a signal to other global players that it is safe to cooperate with Ukraine for the long term - for decades.
6. The Fund will be filled with revenues exclusively from NEW licenses.
- This means 50% of the proceeds from new licences for critical materials and oil and gas projects that will be transferred to the budget after the Fund is created. Revenues from projects already launched or budgeted revenues are not included in the Fund. The agreement provides for further strategic cooperation.
7. Legislative changes are only pointwise.
- The Fund's operation requires only amendments to the Budget Code. The Agreement itself must be ratified by the Verkhovna Rada.
8. The US will help attract additional investment and technology.
- The fund is supported by the US government through the DFC agency, which will help us attract investment and technology from funds and companies in the US, the EU and other countries that support our fight against the Russian enemy. Technology transfer and development is an important part of the Agreement, as we need not only investment but also innovation.
9. The agreement provides tax guarantees
- The Fund's income and contributions are tax-free in both the US and Ukraine to ensure that investments yield the highest possible returns.
The Work of the Fund
According to Svyrydenko, the US contributes to the Fund. In addition to direct funds, they can also contribute new assistance, such as air defence systems for Ukraine. While Ukraine contributes 50% of the state budget revenues from new royalties on new licences 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 in related infrastructure or processing. Ukraine and the United States will jointly determine the specific investment projects to be funded. Importantly, the Fund can invest exclusively in Ukraine.
Ukraine expects 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.
"We have formed a version of the agreement that provides mutually beneficial conditions for both states. This is an agreement in which the United States notes its commitment to promoting long-term peace in Ukraine and recognises the contribution that Ukraine has made to global security by giving up its nuclear arsenal. The agreement notes the US commitment to Ukraine's security, recovery and reconstruction. I am grateful to everyone who worked for the agreement and made it more meaningful. Now the document is such that it can ensure success for both our countries - Ukraine and the United States," the minister summed up.
