An important milestone in the strategic partnership between Ukraine and the US was described by the Ukrainian Foreign Minister Andrij Sybiha signed a non -growth agreement between countries. On the X Network he wrote on Thursday that he phoned with the EU diplomacy chief Kaja Kallas, who informed about Wednesday’s signing of the American-Ukrainian Agreement in Washington. Informs TASR.
Sybiha with Kallas also discussed the matters of Ukraine and the EU and coordinate the next steps. According to Sybih, the topic of their interview was also the exchange of current information on the preparation of a visit to Foreign Ministers of EU countries in Ukraine on 9 May.
Renewal agreement
“I informed my colleague about the signing of the agreement on the establishment of the US-Ukrainian reconstruction investment fund. This is an important milestone in the strategic partnership between Ukraine and the US aimed at strengthening the Ukrainian economy and security,” the Ukrainian minister wrote.
The United States has not yet published the agreement, but the Ukrainian Minister of Economy and the first Deputy Prime Minister Julia Svyrydenková, who signed her in Washington on behalf of Kiev, provided some details. For the US side, the Minister of Finance Scott Bessent was signature. The agreement will come into force only after approval in the Ukrainian parliament.
Svyrydenková on the X Network confirmed that Ukraine will create an investment fund for the renewal of Ukraine as part of an agreement along with the US, which, in her words, will attract global investment. Kiev also retains the full ownership of all minerals in its territory and in his territorial waters.
The Deputy Prime Minister said she would “determine what and when it will be mined in Ukraine”. At the same time, the investment fund will be equally managed by both countries. “Neither party will have a dominant voting right – a reflection of an equal partnership between our two countries,” she said.
Terms of Agreement
Bloomberg previously wrote that the agreement should provide the US with a preferential approach to new investment projects aimed at developing Ukrainian natural resources, including aluminum, graphite, oil and natural gas.
The signed version of the Agreement, according to Svyrydenková, provides both sided conditions for both countries. “This is an agreement in which the United States acknowledges their obligation to support long -term peace in Ukraine and recognize the contribution of Ukraine to global security by giving up its nuclear arsenal,” she said.
As the AP noted, the agreement concerns mineral resources, including metals of rare soils, but also other valuable sources, including oil and natural gas. It does not include resources that are already a source of income for the Ukrainian state. This means that any profit resulting from the Agreement depends on the success of future investments.
Contributions to the fund
As far as the investment fund is concerned, the United States will contribute either by direct financial contribution or new military aid. The text published by the Ukrainian Ministry of Economy is emphasized that the agreement focuses only on a new, not the past military assistance provided by the US to Ukraine. It therefore does not contain “no provisions concerning Ukrainian debt obligations to the United States”, said Svyrydenková.
Kiev will contribute 50 percent of future income from new license fees to the Ukrainian state from new permits for the use of natural resources in Ukraine, including critical raw materials, oil and natural gas. Existing projects or budget income is not included in this liability. The fund’s contributions and income will be exempt from taxes in Ukraine and the United States.
Fund sources will be invested exclusively in Ukraine – either in mining projects or in the reconstruction of the infrastructure. During the first ten years, profits from the Fund will be fully investigated to the Ukrainian economy. After this period they can be divided between Ukraine and the US, the Ukrainian ministry said.
