On the night of May 1, Ukraine and the United States signed an agreement to establish a Reconstruction Investment Fund.
Points of attention
- The agreement provides for the creation, together with the United States, of an Investment Fund for the Reconstruction of Ukraine, which will attract global investments into our country.
- The agreement complies with the Constitution and does not change the European integration course.
Ukraine signs subsoil agreement with the US
This was announced by the Minister of Economy of Ukraine, Yulia Svyrydenko.
As agreed, President Volodymyr Zelenskyy and President Donald Trump, together with US Treasury Secretary Scott Bessant, signed the Agreement on the Establishment of the US-Ukraine Reconstruction Investment Fund.
Yulia Svyrydenko
Minister of Economy of Ukraine
According to the minister, the agreement provides for the creation, together with the United States, of an Investment Fund for the Reconstruction of Ukraine, which will attract global investments into our country.
Svyrydenko named the key provisions of the agreement:
Full ownership and control remain with Ukraine. All resources on our territory and in territorial waters belong to Ukraine. It is the Ukrainian state that determines where and what to extract. The subsoil remains in Ukrainian ownership — this is enshrined in the agreement.
Equal partnership. The Fund is being created on a 50/50 basis. We will manage this Fund jointly with the United States. Neither party will have a majority vote, reflecting an equal partnership between Ukraine and the United States.
National property is protected. The agreement does not foresee changes in the privatization processes or management of state-owned companies — they will continue to belong to Ukraine. Companies such as Ukrnafta or Energoatom remain state-owned.
No debts. The agreement does not mention any debt obligations of Ukraine to the United States. The implementation of the agreement will allow both countries to increase their economic potential through equal cooperation and investment.
The agreement complies with the Constitution and does not change the European integration course.
The document is consistent with national legislation and does not contradict any international obligations of Ukraine. It is important that the agreement will also become a signal to other global players that it is reliable to cooperate with Ukraine in the long term — for decades.
The Fund will be filled with revenues exclusively from new licenses. This is 50% of the funds from new licenses for projects in the field of critical materials and oil and gas, which will be received by the budget after the Fund is established. Revenues from already launched projects or planned revenues in the budget are not included in the Fund. The agreement concerns further strategic cooperation.
Legislative changes are only spot-on. The Fund's functioning requires only amendments to the Budget Code. The Agreement itself must be ratified by the Verkhovna Rada.
The US will help attract additional investment and technology. The fund is supported by the US government through the DFC agency, which will help us attract investment and technology from funds and companies both in the US and in the EU and other countries that support our fight against the Russian enemy. Technology transfer and development is an important component of the Agreement, because we need not only investment, but also innovation.
The agreement provides tax guarantees. The Fund's income and contributions are not taxed in either the US or Ukraine, so that the investment yields the greatest possible results.
The Minister of Economy also noted how the Fund will operate:
The United States contributes to the Fund. In addition to direct funds, it can also provide new assistance — for example, air defense systems for Ukraine.
Ukraine contributes 50% of the state budget revenues from new rents for new licenses for new areas. Ukraine can also make additional contributions beyond this basic amount if it deems it necessary. This is a cooperation for decades to come.
The Fund will then invest in mineral and oil and gas projects, as well as related infrastructure or processing. The specific investment projects to which the funds will be directed will be determined jointly by Ukraine and the United States. Importantly, the Fund can invest exclusively in Ukraine.
We expect that for the first 10 years, the fund's profits and revenues will not be distributed, but can only be invested in Ukraine — in new projects or reconstruction. These conditions will be discussed further.
"We have formed a version of the agreement that provides for mutually beneficial conditions for both states. This is an agreement in which the United States notes its desire to contribute to achieving long-term peace in Ukraine and recognizes the contribution that Ukraine has made to global security by abandoning its nuclear arsenal. An agreement in which the United States notes its commitment to Ukrainian security, recovery and reconstruction," Svyrydenko added.
The Minister thanked the Presidents for their leadership, and everyone who worked for the agreement, making it more meaningful.
Now the document is one that can ensure success for both of our countries — Ukraine and the United States.
