Ukrainian Prime Minister Denys Shmyhal emphasized that the economic agreement with the United States of America involves the establishment of a Reconstruction Investment Fund, which will be managed equally by Ukraine and the USA. According to the agreement, the fund will be registered in the USA, and an account for contributions will be opened in Ukraine in hryvnias.
This is reported by Finway
Key Provisions of the Agreement
Among the important aspects of the agreement, the following can be highlighted:
- The fund is an investment tool for Ukraine, not a mechanism for asset transfer. All natural resources remain the property of Ukraine.
- The fund will be filled on a parity basis, where the USA and Ukraine will make contributions in a 50-50 ratio. Contributions from the USA may be represented in the form of cash or new military assistance. Ukraine will begin making its contributions to the Fund no earlier than 2030.
- During the first ten years, the profits of the fund will not be withdrawn from Ukraine but will be reinvested in the Ukrainian economy. The fund must guarantee commercial purchases of products on “take or pay” terms, ensuring guaranteed demand for the products.
- According to information from the White House, the USA has obtained the right of first refusal for Ukrainian resources or to designate a buyer for them.
- The fund, through the American agency DFC, will attract cutting-edge technologies from the USA and Europe, which will facilitate the rapid recovery and modernization of Ukraine.
- The agreement does not impose any debt obligations on Ukraine.
- The fund’s income is not taxed, and critical minerals exported to the USA will not be subject to tariffs, creating unique opportunities for trade development.
- This agreement does not contradict other international obligations of Ukraine.
Ratification of the Agreement
The draft law on the ratification of the agreement regarding the Reconstruction Investment Fund may be adopted on May 8. This is only the first of three documents that will regulate the operation of the fund. The other two agreements will be signed without the involvement of parliament.