Ukraine and the United States are in the final stages of preparations to sign a strategic subsoil agreement that will create an investment fund to restore and develop the Ukrainian economy. This was stated by Prime Minister Denys Shmyhal during a national telethon.
According to him, First Deputy Prime Minister Yulia Svyrydenko is on her way to Washington to finalise the document. The agreement is expected to be signed within a day.
This is an equal agreement between the US and Ukrainian governments, which provides for contributions from both sides in a 50-50 format – exclusively in cash. At the same time, the US side will be able to include new military assistance as part of its contribution.
“Ukraine retains full control over all its resources. Subsoil, infrastructure and natural resources are not the subject of the agreement,” Shmyhal stressed.
Two technical documents will also be signed that will regulate the creation of the fund, its content and management mechanisms.
The agreement exempts the parties from taxes and duties, which will allow for the most efficient investment of funds. In addition, the United States is committed to engaging other international partners and private businesses in this fund.
“Over the next 10 years, the fund will invest in the creation of enterprises, development of production, as well as in the purchase of Ukrainian products on a take-or-pay basis,” the Prime Minister explained.
The document also does not address previous aid or debts, but only new contributions. In addition, the agreement mentions the Budapest Memorandum, which highlights Ukraine’s contribution to global security.
Shmyhal assured that the new agreement does not contradict Ukraine’s European integration course and will not become an obstacle to joining the EU.
