Ukraine's PM comments on Ukraine-US agreement
Photo: Prime Minister Denys Shmyhal (Vitalii Nosach, RBC-Ukraine)
Ukraine and the United States have finalized the agreement on rare earth minerals. As of today, this agreement is called the Agreement on Establishing the Rules and Conditions of the Investment Fund for the Reconstruction of Ukraine, according to Prime Minister of Ukraine Denys Shmyhal.
“We have worked out the final version. As of today, this agreement is called the Agreement on Establishing the Rules and Conditions of the Investment Fund for the Reconstruction of Ukraine. This is a preliminary agreement that will have legal force. It provides for the creation of an investment fund for the reconstruction of Ukraine, which Ukraine and the United States will jointly manage and fill,” says Shmyhal.
According to him, this agreement is directly linked to Ukraine's security guarantees, and neither President Volodymyr Zelenskyy nor the Cabinet of Ministers will consider it without them.
“The preamble of the agreement very clearly states that taking into account the desire of the American people to invest with Ukraine in a free, sovereign, and secure state, this is the beginning of the agreement. I am directly quoting the text, and this is important for us to understand the purpose of the agreement. The security nature of this agreement is the number one priority for our country, the government, and the President,” the Prime Minister emphasized.
The agreement refers to the Budapest Memorandum, which emphasizes Ukraine's contribution to international security by giving up the world's third-largest nuclear arsenal.
It is expected that the document will be reviewed by the Ukrainian government and finalized during the talks between the Presidents of Ukraine and the United States.
Main provisions of the agreement on rare earth metals:
- Creation of an investment fund - Ukraine and the United States will manage the Ukraine Recovery Fund on an equal footing;
- Linkage to security guarantees - the agreement is part of the security architecture, including support for Ukraine's accession to NATO or alternative guarantees;
- Fund financing - 50% of Ukraine's revenues from royalties or licenses for minerals and dividends on infrastructure will be directed to the fund;
- Joint contributions of the United States and Ukraine - the funds will be invested in the recovery, economy, and security of Ukraine;
- Recognition of Ukraine's contribution to international security - a reference to the abandonment of the nuclear arsenal (a reference to the Budapest Memorandum);
- The fund is managed jointly by the governments of Ukraine and the United States.
Deal agreed
Yesterday, the Financial Times reported, citing sources, that Ukraine and the United States had agreed on the details of the agreement on rare earth metals. The article noted that Ukraine is ready to sign an agreement that provides for joint development of its mineral resources, including oil and gas, with the United States.
According to the FT, the final version of the agreement provides for the creation of a fund to which Ukraine will contribute 50 percent of the proceeds from the sale of rare earth resources.
Why the United States is so interested in gaining access to Ukrainian raw materials and what Ukraine could get from American companies in return read in RBC-Ukraine article.
