Ukraine and US have signed mineral resources deal
www.pravda.com.ua
Thu, 01 May 2025 00:46:24 +0300
Ukrainian Economy Minister Yuliia Svyrydenko and US Treasury Secretary Scott Bessent have signed a mineral resources deal.
Source Svyrydenko on Facebook US Department of the Treasury Quote from Svyrydenko Together with US Treasury Secretary Scott Bessent, I signed the Agreement on the Establishment of the United StatesUkraine Reconstruction Investment Fund.
Quote Bessent The United States is committed to helping facilitate the end of this cruel and senseless war.
This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term.
President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides commitment to lasting peace and prosperity in Ukraine.
And to be clear, no state or person who financed or supplied the Russian war machine will be allowed to benefit from the reconstruction of Ukraine.
Details Svyrydenko listed the key provisions of the mineral resources agreement.
All resources remain Ukrainian property this is enshrined in the agreement.
The Investment Fund is created on a 50/50 basis.
Ukraine and the US will jointly manage the Fund.
Neither side will have a controlling vote.
The agreement does not entail changes to the processes of privatisation or the management of stateowned companies they will continue to belong to Ukraine.
Companies such as Ukrnafta or Energoatom will remain stateowned.
The agreement does not contain any mention of debt obligations of Ukraine to the US.
The agreement complies with the Constitution and does not alter the course of European integration.
The document aligns with national legislation and does not contradict any of Ukraines international obligations.
The Fund will be filled exclusively with revenues from new licences.
This concerns 50 of the funds from new licences for projects in the field of critical materials and oil and gas, which will be directed to the budget after the Fund is created.
Revenues from already launched projects or those planned in the budget are not included in the Fund.
Legislative changes are minimal.
Only amendments to the Budget Code are envisaged to ensure the Funds functioning.
The Agreement itself must be ratified by the Verkhovna Rada the Ukrainian parliament.
The United States will help Ukraine attract investment, technology and innovation through the DFC Development Finance Corporation.
Revenues and contributions to the Fund will not be taxed in either the US or Ukraine.
Quote from Svyrydenko The US is contributing to the Fund.
In addition to money, they may also do so through new assistance like air defence systems for Ukraine.
We expect that the Funds profits and revenues will not be distributed for the first 10 years, but may only be reinvested in Ukraine in new projects or reconstruction.
These conditions will be discussed further.
Background Yuliia Svyrydenko, Deputy Prime Minister and Minister of Economy, has travelled to Washington to sign the document.
The Financial Times reported that the signing of a framework agreement on the use of minerals between Ukraine and the United States was threatened at the last minute when the Ukrainian delegation left for Washington.
Bloomberg reports that the draft agreement calls for the creation of a joint fund to attract investment in the energy, mining, and related sectors of the Ukrainian economy.
On 1112 April, the Ukrainian delegation held technical consultations in Washington with President Donald Trumps administration on the minerals resource agreement.
Ukraines Economy Ministry released the text of a memorandum with the United States on finalising a formal agreement on economic partnership and an investment fund for reconstruction.
The future joint investment fund between Ukraine and the United States will have the right to invest in both mineral resource development and key infrastructure projects.
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