Ukraine ratifies minerals deal with US - What it means
Photo: David Arakhamia, head of the Servant of the People faction (Vitalii Nosach, RBC-Ukraine)
The agreement on partnership between Ukraine and the USA was ratified in the Verkhovna Rada. This opens the way to the second stage – the coordination of two technical agreements, according to the head of the Servant of the People faction Davyd Arakhamia.
He explained that American legislation does not require ratification of the partnership agreement with Ukraine. However, the Ukrainian parliament had to ratify the deal since it contained issues of taxes, fees, and payments to the Reconstruction Investment Fund.
Arakhamia hopes that tomorrow, May 9, the bill on ratification will be signed by President Volodymyr Zelenskyy.
“After ratification, we move to the second stage – our government negotiators must complete the process of agreeing and signing two other agreements, more technical agreements regarding the creation of a joint institution, where three on three will decide on investment projects that this fund will consider and finance. Three people – from the Ukrainian side, three people – from the American side,” said Arakhamia.
The head of the Servant of the People faction noted that according to preliminary estimates, these processes are expected to stretch over a period of up to a month.
“We hope that by autumn the Fund will be formed and will begin to work,” he said.
The MP added that the news about the ratification of the agreement has already interested foreign investors, not only from the USA but also from Britain, France, and other countries.
Ukraine-USA minerals deal
On the night of May 1, Ukraine and the USA signed an agreement on economic partnership, also known as the minerals deal. The document provides for the creation of a Reconstruction Investment Fund, which will be half Ukrainian and half American.
Today, May 8, the Verkhovna Rada of Ukraine ratified the agreement with the USA.
The agreement provides access to 57 minerals, the deposits of which Ukraine possesses. However, the subsoil will not be simply transferred to the USA, and Ukraine retains full control over resources and infrastructure.
The fund will invest in projects related to the extraction of minerals and oil and gas, as well as in related infrastructure or processing. The first 10 years of profits will go to the Ukrainian economy and, afterward – can be shared by the partners.
At the same time, US military aid, which will be provided to Ukraine, will be counted as contributions to the Fund.
