Ukraine and the United States signed an agreement on the creation of an investment fund of reconstruction.
The Ministry of Economy of Ukraine Yulia Sviridenko reported this on her Facebook page.
As President Volodymyr Zelensky and President Donald Trump agreed with the US Minister of Finance Scott Bessant, she signed an agreement on the creation of an investment fund of the US-Ukrainian reconstruction, ”she said.
It is supposed to create an investment fund for the reconstruction of Ukraine, which will attract global investments in our country.
Key provisions of the Agreement:
- Full property and control remain for Ukraine. All resources in our territory and territorial waters belong to Ukraine. This Ukrainian state determines where and what to produce. Administration remains in Ukrainian property – this is enshrined in the agreement;
- Equal partnership. The fund was created 50/50. We will manage this fund in combination with the United States. None of the parties will have a predominant voice, and this will reflect an equal partnership between Ukraine and the United States;
- National property is protected. The agreement does not provide for changes in privatization or management of state -owned companies – they will continue to belong to Ukraine. Companies such as Ukrnaft or Energoatom remain belonging to the state;
- There is no duty. The agreement does not mention what kind of label of Ukraine to the United States is mentioned. The introduction of an agreement will allow both countries to increase their economic potential thanks to equal cooperation and investment;
- The agreement corresponds to the constitution and does not change the course of European integration. The document is consistent with national legislation and does not contradict what kind of international obligations of Ukraine;
- The fund will be filled with income exclusively from new licenses. These are 50% of the funds from new licenses for projects in the field of critical materials, oil and gas, which will come to the budget after creating the fund. Revenues from already begun projects or the planned budget are not included in the fund. The agreement refers to further strategic cooperation;
- Legislative changes are only a point. The function of the fund provides for amendments to the budget code. The agreement itself must ratify Verkhovna Rada;
- The United States will help attract additional investments and technologies. The Fund is supported by the US Government through DFC, which will help us attract investments and technologies from funds and companies in the United States, and in other countries that support Ukraine against the Russian enemy;
- The agreement provides tax guarantees. The income and contributions of the fund are not taxed in the USA or Ukraine to give investments the same number of results.
According to Sviridenko, the fund will work as follows:
- The United States contributes to the fund. In addition to funds, they can do this with new help – for example, air defense systems for Ukraine;
- Ukraine produces 50% of the state budget from the new rent to new licenses for new areas. Ukraine can also make an additional contribution, in addition to this basic, if necessary. We are talking about cooperation for decades ahead;
- Then the fund investigates in projects for the production of production and oil and gas, as well as in the concomitant infrastructure or processing. Specific investment projects that will be sent to Ukraine and the USA will be determined jointly. It is important that the fund can invest exclusively in Ukraine.
We expect that the first 10 years of profit and funds of the fund are not distributed, but can only be invested in Ukraine – in new projects or recovery. These conditions will be discussed additionally, ”she said.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.