United States and Ukraine ink pact concerning natural resources division
Headline: U.S.-Ukraine Investment Agreement Signed: Kyiv's Oil and Gas Sectors Transforming with American Aid
Yulia Svyridenko, Ukraine's First Deputy Prime Minister and Minister of Economy, took to her Facebook page to announce a significant partnership between Ukraine and the U.S. The duo is set to create an Investment Fund, nicknamed the "Ukraine Recovery Fund," aimed at attracting global investments to Ukraine's economy.
According to UNIAN agency, here are the key provisions of the investment deal:
- Ukraine's resource ownership remains intact. Ukraine holds full control over its subsoil resources, determining where and what to extract. The subsoil shall remain in Ukrainian ownership;
- Equal partnership. The Fund is established as a 50/50 venture, with neither side having a decisive vote;
- Protection of national property. The signed agreement won't impact Ukraine's privatization processes or management of state-owned companies like "Ukranafta" or "Energoatom";
- No debt burden. The agreement doesn't include any debt obligations for Ukraine towards the U.S.;
- No taxes on revenues and contributions. To maximize investment results, the fund's revenues and contributions will not be taxed in either the U.S. or Ukraine;
- New licenses fund. The fund will be filled exclusively with revenues from new licenses for projects in the critical materials, oil, and gas sectors once the fund is created. Revenues from already started projects or planned budget revenues are not included in the fund;
- Strategic cooperation extension. The agreement speaks of further strategic cooperation, aiming to boost both countries' economic potential through equal cooperation and investments in critical materials, oil, and gas sectors.
The agreement aligns with Ukraine's Constitution and doesn't change its course towards European integration, as highlighted in the publication.
Remember, earlier this year, U.S. President Donald Trump mentioned that aid to Ukraine would continue if it agreed to supply the U.S. with rare earth metals. Previously, Zelensky noted that the U.S. development of Ukraine's rare earth metals was one of the key points in his "Plan of Victory" (a comprehensive proposal presented to Trump in September 2024).
However, negotiations on this matter were complicated, and Zelenksy eventually refused to sign such an agreement, citing the lack of guarantees for Ukraine. Trump accused Kyiv of derailing the deal, labeling Zelensky a dictator for his unwillingness to hold presidential elections in Ukraine.
Later, reports emerged that the Trump administration had offered an "enhanced project" for an agreement on the extraction of minerals within Ukraine's territory. Zelensky confirmed that Kyiv does not consider the previously provided U.S. military aid as debt.
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- The U.S.-Ukraine Investment Agreement, as announced by Yulia Svyridenko, will aim to transform Ukraine's oil and gas sectors with American aid, with the formation of a 50/50 joint venture investment fund named the "Ukraine Recovery Fund."
- The signed agreement ensures that Ukraine maintains sovereignty over its subsoil resources, with no impact on the country's constitution, privatization processes, or management of state-owned companies.
- The revenues and contributions to the Ukraine Recovery Fund will not be taxed in either the U.S. or Ukraine, and will be filled exclusively with revenues from new licenses for projects in the critical materials, oil, and gas sectors.
- Despite earlier negotiations over the extraction of rare earth metals within Ukraine's territory, a previous agreement was not signed due to uncertainties, and Kyiv has made it clear that any U.S. military aid is not considered debt by Ukraine.
