The Minister of Economy of Ukraine, Yulia Svyrydenko, announced the signing of an important agreement between Ukraine and the United States of America, which provides for the establishment of an Investment Fund for the reconstruction of Ukraine. This fund aims to attract global investments to our country.
This is reported by Finway
Key Aspects of the Agreement
According to the terms of the agreement, full ownership and control over natural resources remain with Ukraine. All resources located on the territory of the country and in its territorial waters belong exclusively to the Ukrainian state, which determines where and what to extract.
The fund will be created on a parity basis, where 50% of the management rights will belong to Ukraine, and the other half to the USA. Neither party will have a weighted vote in the management of the fund.
Protection of National Interests
The agreement guarantees the protection of national property. It does not foresee any changes in the processes of privatization or the management of state enterprises, which will continue to remain under Ukraine’s control. Importantly, the agreement does not contain any debt obligations of Ukraine to the USA, opening new opportunities for economic growth for both countries.
According to information, the fund will be financed exclusively from new licenses, specifically, 50% of revenues from new licenses for projects in the field of critical materials, oil, and gas. Revenues from already existing projects are not included in the fund.
Only minor changes to the budget code are required for the implementation of the fund, and the agreement itself must be ratified by the Verkhovna Rada, which may take place between May 13-15. After that, the agreement will come into effect and will remain in force until the parties decide to suspend it.
The United States of America is also ready to assist Ukraine in attracting additional investments and technologies through the DFC agency, which will support cooperation with funds and companies both in the USA and in the EU and other countries.
“The Investment Fund will contribute to the sustainable development of Ukraine and demonstrates that it is reliable to cooperate with our country in the long term,” Svyrydenko noted.
Additionally, the agreement provides tax guarantees, as the income and contributions of the fund are not subject to taxation either in Ukraine or in the USA. The agreement, signed on April 30, lays the groundwork for further cooperation between the two governments, anticipating the conclusion of two more contracts that will detail the operation of the fund and the distribution of its resources.