“Ukraine and the United States have entered into an important bilateral economic partnership agreement that lays a legal and institutional foundations for the creation of a joint investment fund of reconstruction. This step will become an important milestone in strategic relations between countries and will help attract global capital in the Ukrainian economy. The signing of the agreement is informed by the Government Portal. The document was signed by the First Viceremier-Minister-Minister of Economy of Ukraine”, – WRITE ON: ua.news
Ukraine and the United States have entered into an important bilateral economic partnership agreement that lays a legal and institutional foundations for the creation of a joint investment fund of reconstruction. This step will be an important milestone in strategic relations between countries and will help attract global capital in the Ukrainian economy.
About signature The Government Portal informs the agreements.
The document was signed by the first Viceremier-Minister of Economy of Ukraine Yulia Sviridenko and US Finance Minister Scott Bessent.
That provides an agreement
The key element of the document is the creation of the US-Ukrainian Investment Reconstruction Fund, which will be financed by both countries on parity conditions-50% of the contribution from each side. Neither party will have a dominant influence, all decisions will be made jointly, which guarantees transparency and balance of interests.
The Fund will become a flagship structure for directing investment in:
- restoration of infrastructure;
- energy independence;
- production of strategically important minerals (57 positions – from lithium to uranium);
- technological development;
- Implementation of public-private partnerships.
The Agreement also stipulates that the Fund will be able to act as a partner in projects related to the development of subsoil, infrastructure concessions, privatization and modernization of energy objects. All state bodies of Ukraine, which are authorized to issue licenses for subsoil or approve public-private projects, are obliged to take into account the interests of the Fund, give it access to the investments and involve in negotiations in case of its interest.
Guarantees of sovereignty and transparency
A separate item is stated that all natural resources remain in Ukraine. No company or structure, even within the framework of this partnership, will be able to claim control of Ukrainian subsoil or strategic assets.
In addition, the agreement does not contradict Ukraine’s course in membership in the European Union. If there is a need to make changes to harmonize with euronous obligations, the parties agreed to carry out additional consultations.
Innovative Model Valuation of US Contribution
Another important tool is the military assistance that the US is already provided or provided to Ukraine. According to the agreement, if the states are transferred weapons, technologies, ammunition or training, their estimated value is credited as a contribution to the reconstruction fund. This does not create a debt for Ukraine, but allows you to quickly reflect support as part of the investment partnership.
Tax benefits and budgetary mechanisms
Partnership contributions are exempt from taxation in both countries. For the Ukrainian part of the Fund, funds will be formed from the special fund of the state budget at the expense of agreed revenues from production, concessions and other sources not related to current budget liabilities.
What next
The agreement will act indefinitely – until both parties agree on its termination. The document has already been signed, but in order to enter into force it must be ratified by the Verkhovna Rada of Ukraine.
The government expects that the Fund’s management structure will be formed after this process, the first priority projects for investing will be determined, and negotiations with private and institutional investors from the US, EU and other countries will be launched.
Recall that Ukraine and the United States of America signed Economic Cooperation Agreement (Nadra Agreement). The first Viceremier -Minister – Minister of Economy of Ukraine Yulia Sviridenko and US Department of Finance Scott Scott Bessent made their signatures.
On the eve of US Finance Minister Scott Bessent stated that the Ukrainian side before signing I decided Make changes to the subsoil framework agreement.
