The Cabinet of Ministers has registered in the Rada a draft law necessary for the implementation of the mineral agreement with the USA: what it envisages

The Cabinet of Ministers approved and submitted to the Verkhovna Rada a draft law on amendments to the Budget Code of Ukraine, which is necessary for the implementation of the agreement with the United States on mineral resources. This is reported by UNN with reference to the card of draft law №13256.

Details The Cabinet submitted to the Verkhovna Rada a draft law, which was adopted at today’s meeting, “On Amendments to the Budget Code of Ukraine on the Implementation of the Agreement between the Government of Ukraine and the Government of the United States of America on the Establishment of the American-Ukrainian Reconstruction Investment Fund”.

According to the draft law, it is planned to introduce a mechanism for transferring income from the use of natural resources to a special fund of the state budget of Ukraine for further transfer to the American-Ukrainian Reconstruction Investment Fund, established in accordance with the agreement with the US government.

According to the draft law, the revenues of the general fund of the state budget include:

• 70% of rent for the use of subsoil for the extraction of minerals of national importance and rent for the use of subsoil for the extraction of minerals of national importance, which are defined in accordance with the ratified agreement between Ukraine and the United States on the agreement on mineral resources;
• 35% of rent for the use of subsoil for the extraction of minerals of national importance, which are defined by the list of Natural Resource Assets, taking into account the conditions of their extraction, established by the agreement on the reconstruction fund;
• 47% of rent for the use of subsoil for the extraction of oil, natural gas, which are defined by the list of Natural Resource Assets, taking into account the conditions of their extraction, established by the Agreement on the Reconstruction Fund.

Also, the sources of filling the state budget are 50% of the funds from the sale of special permits for the use of subsoil and 50% of the income from the sale of part of the products owned by the state.

The funds received to the special fund of the state budget will be used to pay a contribution to the US-Ukraine Reconstruction Investment Fund in the form of a limited partnership, established in accordance with the agreement on the Reconstruction Fund.

Restrictions:

• income from licenses issued before the agreement comes into force is not included, unless it concerns new exploitation;
• income from assets related to royalties or reparations from the Russian Federation is not taken into account.

Fiscal clarifications:

• overpaid or mistakenly credited revenues are returned;
• tax debt for the period of the agreement is canceled from the date of its expiration.

The funds will be transferred to the Investment Fund and will be used for infrastructure reconstruction projects related to post-war reconstruction.

Let us remind you Ukraine signed an agreement with the United States of America on the establishment of the Reconstruction Investment Fund.

Voting in the Verkhovna Rada for the ratification of the agreement on mineral resources between the United States and Ukraine is expected on May 8.