Ukraine and the United States of America signed an agreement on economic cooperation, known as the “subsoil agreement”. The document was signed by the First Deputy Prime Minister — the Minister of Economy of Ukraine, Yulia Svyridenko, and the head of the US Treasury, Scott Bessent.
“Together with US Treasury Secretary Scott Bessant, I signed the Agreement on the Creation of the US-Ukraine Reconstruction Investment Fund”, – noted Svyridenko.
She explained what this agreement provides:
“Together with the USA, we will create an Investment Fund for the Reconstruction of Ukraine, which will attract global investments to our country”.
Svyridenko outlined 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 mine. Nadra remains in Ukrainian ownership — this is fixed by the agreement.
- Equal partnership. The fund is created in a 50/50 ratio. Management of the Fund will be carried out jointly with the US, without a predominant vote of either party, which emphasizes the equality of the partnership.
- National property is protected. The agreement does not provide for changes in the processes of privatization or management of state-owned companies. Such companies as Ukrnafta and Energoatom remain in state ownership.
- No debts. The agreement does not contain provisions on Ukraine’s debt obligations to the United States. Its implementation should strengthen the economic potential of both states thanks to partnership and investments.
- 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 Ukraine’s international obligations. The agreement should be a signal to other countries about the reliability of long-term partnership with Ukraine.
- The fund will be filled with income exclusively from new licenses. It is about 50% of revenues from new licenses for projects in the field of critical materials, oil and gas. Existing projects or projected revenues are not included.
- Legislative changes are only partial. Only changes to the budget code are necessary for the Fund’s work. The agreement must be ratified by the Verkhovna Rada.
- The US will help attract investment and technology. The fund is supported by the US government through the DFC agency, which will facilitate the attraction of investments and technologies from the US, the EU and other countries. Technology transfer is an important part of the agreement.
- The agreement provides tax guarantees. Contributions and income of the Fund are not taxed either in the USA or in Ukraine to ensure maximum investment efficiency.
The fund will invest in mining, oil and gas projects, related infrastructure and processing. Ukraine and the USA will jointly determine specific investment projects.
“This is an agreement in which the United States recognizes its desire to contribute to the achievement of long-term peace in Ukraine and recognizes the contribution that Ukraine has made to global security by giving up its nuclear arsenal. An agreement in which the United States recognizes its commitment to Ukrainian security, recovery and reconstruction.”, – emphasized Svyridenko.
