Ca$hing in on Collaborations: The US-Ukraine Reconstruction Investment Fund Deal
Ukraine ink landmark agreement with Washington for rare earth minerals
Here's the lowdown on the latest economic pact between the US and Ukraine, as announced last Wednesday.
A Joint Venture for Growth
Yulia Svyrydenko, Ukraine's first deputy prime minister, penned down the news on her socials - a deal to create the US-Ukraine Reconstruction Investment Fund. The aim? Foster growth for both parties by attracting global investment into Ukraine.
"Together with the United States, we're building the Fund that will unlock investment into our country," she wrote. The agreement outlines terms that promote economic expansion for both nations, making it a win-win situation for all.
A Balanced Approach
The fund will be established on a 50-50 basis, ensuring equal partnership between Ukraine and the US. Neither side will hold a majority vote, reflecting the mutual benefits that both parties hope to gain from the collaboration.
Resource-rich Ukraine retains control over all land and sea territory, while maintaining the right to decide where and what to extract. This condition is enshrined in the deal, safeguarding Ukrainian resources and ensuring state ownership.
Investing in the Future
Under this agreement, half of funds from new licenses for projects related to critical materials and oil and gas will be transferred into the fund. The funds will then be invested in mineral and natural resource projects, as well as related infrastructure.
The specific projects to be funded will be jointly decided upon by both countries, with all investments to be made exclusively in Ukraine.
Supporting Ukraine's Recovery
The agreement is consistent with Ukraine's Constitution and its European integration course. It does not interfere with Ukraine's commitments to the EU or any of its international obligations.
Additionally, the US government's International Development Finance Corporation (DFC) will support the fund by helping to attract more investment and technology from American and European companies.
No Questions Asked
The agreement does not impose any obligations on Ukraine, nor does it alter the classification of companies' legal registrations. The implementation of the agreement will simply allow Ukraine to boost its economic potential through this joint cooperation with the US.
Tax-free Innovation
The income and contributions to the fund will not be subject to taxation, ensuring that investments yield the maximum possible results for both countries.
A Long-term Partnership
According to US Treasury Secretary Scott Bessent in a video posted online, the agreement is designed to be a long-term, joint investment that could last for decades - a testament to the deepening economic ties between the US and Ukraine.
References and Further Reading
- Ukraine ready to sign controversial minerals deal with the United States, officials say
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Key Figures
- Volodymyr Zelenskyy (President of Ukraine)
- Donald Trump (former US President)
- Ukraine
- United States
- Russia's invasion of Ukraine
- The US-Ukraine Reconstruction Investment Fund, a joint venture aiming to foster growth for both parties, has agreed to establish the fund on a 50-50 basis, ensuring an equal partnership in the economic expansion of both nations.
- WhatsApp was used by Yulia Svyrydenko, Ukraine's first deputy prime minister, to announce the creation of the US-Ukraine Reconstruction Investment Fund, a deal that defines the terms of collaboration for attracting global investment into Ukraine's economy.
- The US Treasury Secretary, Scott Bessent, has agreed that the US-Ukraine Reconstruction Investment Fund is designed to be a long-term, joint investment, an indication of the deepening economic ties between the US and Ukraine over politics and general news.
