Mustafa Nayem published the full text of the draft agreement on fossils between Ukraine and the United States

Former head of the State Agency for Reconstruction and Development of Infrastructure, Mustafa Nayem made public the full text of the draft agreement between Ukraine and the US government on minerals. The document refers to the creation of the “Reconstruction Investment Fund”. The text of the project was developed by the lawyers of the Freshfields company on the order of the state financial corporation of the USA DFC.

“I think it is right that those who really need to understand the essence can familiarize themselves with it: lawyers, economists, analysts, the public. This is not an attempt to disrupt the agreement or stop the process. I have given specific proposals that should be changed. And if you read to the end, it will become clear: this agreement is not a threat, but a potential opportunity.”, – noted Nayem.

The document contains 55 pages in English, while earlier sources said there were 58. Nayem, a former MP and investigative journalist, did not say who gave him the text, but said it was not sources in the Ukrainian or US government and that the publication was consensual.

“This is a strict corporate agreement written in the language of the state of Delaware. The design is simple: the United States makes decisions, Ukraine transfers resources and undertakes obligations.”, – Nayem explained.

According to him, it is a typical investment instrument with returns, units of participation, risks, managers and clear distribution of benefits. He specified that the fund is proposed to be created as a partnership, in which Ukraine acts as a limited partner (Limited Partner) without the right to make decisions.

Instead, management is provided by a General Partner appointed exclusively by the US party through DFC. Such party will have the power to create companies, amend regulations, reassess contributions, determine profitability and amend the agreement with the approval of the DFC.

Nayem noted that Ukraine grants the Royalty Interest fund – the right to a share of revenues from future projects. However, the value of this asset, its accounting, the amount of liabilities and currency terms are determined by the General Partner.

“This is a complex institutional structure – a fund of funds, with the possibility of creating sub-platforms, management companies, financial instruments. But in this whole architecture, Ukraine is everywhere a passive party”, he concluded.

We will remind you that on March 28, First Vice Prime Minister – Minister of Economy Yuliya Svyridenko confirmed in the Verkhovna Rada that the government received a draft agreement on minerals from the USA.

“This is the working version, which, in fact, reflects the position of American legal advisers. We are forming our position and now the process is also formalized. When necessary, we will of course leave the consultation with the Verkhovna Rada. Any public discussions at the moment regarding the text of this agreement will only harm the negotiations and prevent us from having a constructive discussion with our American partners.”, – emphasized Svyridenko.