Ukraine-US agreement does not provide for transfer of subsoil rights – Ukrainian Minister
Photo: Deputy Prime Minister for European and Euro-Atlantic Integration – Minister of Justice Olha Stefanishyna (Vitalii Nosach, RBC-Ukraine)
The agreement between Ukraine and the United States does not provide for the transfer of rights to use mineral resources or any property rights. Therefore, it does not require ratification or approval through a referendum, states Deputy Prime Minister for European and Euro-Atlantic Integration and Minister of Justice Olha Stefanishyna in an interview with Yurydychna Praktyka.
She noted that if the agreement specifically concerned the use of Ukraine’s subsoil or the right to Ukrainian subsoil, it would require not only ratification but also a referendum, as the Constitution of Ukraine states that subsoil belongs to the people of Ukraine.
"The agreement does not provide for the transfer of rights to use subsoil or any ownership rights. It concerns the distribution of revenues to the state budget, part of which is allocated to the Fund. No legal consequences arise from signing this agreement," said the Deputy Prime Minister.
She emphasized that Ukraine does not assume any obligations regarding the actual transfer or allocation of funds. Such obligations will only arise after an agreement on the establishment of the Fund is concluded and comes into force.
Stefanishyna also added that the agreement between Ukraine and the United States is not an international treaty. The subsequent agreement, which will provide for the creation of the Investment Recovery Fund, will constitute such a treaty.
The agreement that the parties plan to sign formalizes the political understanding between the governments of Ukraine and the United States regarding the intention to establish the Fund.
According to Stefanishyna, the text of the agreement has already been finalized and approved by the government.
"In fact, the Ukrainian side has completed negotiations on the text of the agreement in the form in which it was approved, and it is now being prepared for signing," she stated.
Agreement between Ukraine and the US
Ukraine and the US are working on an agreement regarding mineral resources. Under this agreement, the US will gain access and the ability to extract rare earth materials on Ukrainian territory.
Ukraine wants the agreement to include security guarantees. However, the US Secretary of State has stated that the US will not consider a subsoil agreement as a security guarantee for Ukraine.
Under the agreement, Ukraine and the US will establish a joint investment fund. Ukraine will be required to contribute 50% of all revenues generated from the future monetization of its natural resource assets. The US, in turn, will also make corresponding contributions.
Funds from this investment fund will be directed toward Ukraine’s development, recovery, and security.
Read more about what rare earth materials are and how the idea of the agreement emerged in the RBC-Ukraine report.
