US–Ukraine minerals deal to attract over $200 million in investments
Illustrative photo: It has become known how much investment the subsoil agreement will attract (GettyImages)
By the end of next year, the US-Ukrainian investment fund for reconstruction will amount to about $200 million, according to Ukrainian Economy Minister Oleksii Sobolev.
"We know that the fund will be around $200 million by the end of next year. Of course, these investments will be spread out over time," Sobolev said.
According to him, hundreds of millions of dollars more will be invested in the near future.
This will have a corresponding impact on GDP, but it is too early to give estimates. We will see in a few years, Sobolev said.
US-Ukraine minerals deal
On the night of April 30 to May 1, Ukraine and the US signed an agreement to create a US-Ukrainian Investment Fund for Reconstruction with equal participation of the parties.
As the former Prime Minister of Ukraine, Denys Shmyhal, noted, the document is based on five key principles:
- The fund is created on a 50/50 basis, and both parties have equal voting rights
- Ukraine retains full control over subsoil, infrastructure, and natural resources
- New investments, not debts: the agreement does not provide for any debt obligations
- The fund will invest in projects and guarantee commercial purchases of products on a take-or-pay basis
- The agreement will not be an obstacle to Ukraine's accession to the EU.
Subsurface agreement
On May 1, Ukraine and the US signed an agreement to establish a US-Ukrainian investment fund for reconstruction. On May 8, the Verkhovna Rada ratified the intergovernmental agreement.
Ukrainian President Volodymyr Zelenskyy signed the law on May 12, completing the ratification process.
The remaining agreements will be commercial in nature and will not be signed by the government.
