The United States and Ukraine signed on Wednesday an agreement to establish a joint reconstruction investment fund, granting U.S. firms priority access to new investment projects involving key Ukrainian resources such as oil and natural gas.
This economic partnership positions the two countries to work collaboratively and invest together to ensure that their mutual assets, talent, and capabilities can accelerate Ukraine's economic recovery, the U.S. Treasury Department said in a press release.
The Treasury Department and the U.S. International Development Finance Corporation will work with the Government of Ukraine to finalize program governance and advance this important partnership, it said. In a social media post, Ukraine's First Deputy Prime Minister Yulia Svyrydenko gave further details of the fund. She confirmed that Ukraine would retain full ownership and control of its natural resources.
"All resources on our territory and in territorial waters belong to Ukraine," and "It is the Ukrainian state that determines what and where to extract," she said.
The deputy prime minister said there will be a 50-50 split in managing and contributing to the investment fund, and neither side will hold a dominant vote.
The fund will be filled with income exclusively from new licenses for projects in critical materials and oil and gas.
In addition to direct financial contributions, the United States can also provide military support to the fund, such as air defense systems.
The fund will be invested in mining, oil and gas projects, and related infrastructure or processing projects. Ukraine and the United States will jointly determine the specific investment projects to which the fund will be directed.
The agreement includes no provisions regarding Ukrainian debt obligations to the United States.
U.S., Ukraine sign deal to establish reconstruction investment fund
U.S., Ukraine sign deal to establish reconstruction investment fund
U.S., Ukraine sign deal to establish reconstruction investment fund
