Ukrainian Prime Minister Denys Shmyhal emphasized the importance of the economic agreement with the USA, which provides for the establishment of a Reconstruction Investment Fund. This fund will be managed on equal terms between Ukraine and the USA, with its registration taking place in the USA and an account for contributions being opened in Ukraine in hryvnias.
This is reported by Business • Media
Key Provisions of the Agreement
Among the key aspects of the agreement: the fund acts as an instrument for investment in Ukraine, rather than a mechanism for asset transfer. All natural resources remain the property of Ukraine.
The funding of the fund will be carried out on a parity basis: the USA and Ukraine will contribute funds in a 50-50 ratio. Contributions from the USA may include monetary resources or new military assistance. Ukraine will start funding the fund no earlier than 2030.
During the first ten years, the profits of the fund will not be withdrawn from Ukraine but will be reinvested within the country. The fund will also ensure commercial procurement of products on “take or pay” terms, guaranteeing stable demand for Ukrainian products. The White House noted that the USA will have priority in purchasing Ukrainian resources.
The fund, through the American agency DFC, will attract modern American and European technologies, which will help accelerate the recovery and modernization of Ukraine. The agreement does not contain any references to Ukraine’s debt obligations.
According to the terms of the agreement, the fund’s income is exempt from taxation, and critical minerals exported to the USA will not be subject to tariffs, creating unique opportunities for trade development. The agreement also does not contradict other international obligations of Ukraine.
The bill for the ratification of the agreement on the establishment of the reconstruction investment fund is planned to be adopted on May 8. This is only the first of three agreements that will regulate the operation of the fund, with the other two being signed without parliamentary involvement.