Ukraine and the United States sign an agreement on the establishment of the Reconstruction Investment Fund

The Fund will become a tool for attracting investments in the development of the domestic economy

On April 30, Ukraine and the United States signed an agreement on economic partnership and the establishment of the Reconstruction Investment Fund. This is stated in the report of the Ministry of Economy.

As noted, the Fund will become a key tool for attracting investment in the development of the Ukrainian economy and deepening the strategic partnership between the parties. It will provide funding for critical projects in the field of mineral development and will promote innovation, technological development and rehabilitation.

First Vice Prime Minister of Economy Yulia Svyrydenko noted that this decision was a new stage in cooperation between Ukraine and the United States, and the signing of the agreement is the result of the long work of the negotiating teams.

The Ministry of Economy lists the key guarantees for Ukraine.

• Compliance with the Constitution and the European integration course – the agreement is consistent with current legislation and Ukraine’s international obligations.
• Full control over resources – all subsoil, territorial waters, and resources remain the property of Ukraine, and only Ukraine determines the conditions and places of extraction.
• Preservation of state property. State-owned companies remain in Ukraine’s ownership, and the agreement does not affect privatization processes.
• Optimal legislative changes – only limited changes to the Budget Code of Ukraine are required for the Fund to function, and the agreement itself will be subject to ratification by the Parliament.

The Ministry of Economy also explained how the Fund will work. Ukraine will transfer 50% of future revenues from new royalties on new licenses for new fields (in the field of critical raw materials, oil and gas) to the Fund. Revenues from existing projects or budgeted revenues are not included in the fund.

The Fund’s resources are invested exclusively in Ukraine – in upstream projects or infrastructure reconstruction.

For the first 10 years, profits are not distributed but fully reinvested in the Ukrainian economy, and then they can be distributed among partners.

The Fund is managed on a parity basis between Ukraine and the United States.

The Fund is supported by the U.S. government through the DFC agency, which will help attract investment and technology from funds and companies in the U.S., the EU, and other countries that support Ukraine’s fight against the enemy. Technology transfer is an important component of the agreement.

The document provides tax guarantees – the Fund’s income and contributions are not taxed in the United States or Ukraine.

The agreement focuses on future, not past, U.S. military assistance.

As GMK Center reported earlier, Ukraine seeks to maintain a “trade visa-free regime” with the EU until the end of 2025. In April, the parties automatically extended the “transport visa-free regime” – the Agreement on the Liberalization of Freight Transport – until December 31 of this year.