Under the newly signed U.S.-Ukraine minerals agreement, all Ukrainian natural resources will remain under Ukraine’s ownership.
Ukrainian Prime Minister Denys Shmyhal said this during a government Q&A session in the Verkhovna Rada on May 2, according to an Ukrinform correspondent.
He said that a key provision of the minerals agreement is the creation of a Reconstruction Investment Fund, which will be jointly managed by Ukraine and the United States on an equal footing.
“No party will have an advantage. All decisions will be made jointly. Secondly, the fund is an investment tool for Ukraine, not a mechanism for asset transfer. That means all Ukrainian natural resources remain with Ukraine. The agreement does not cover state enterprises or privatization,” Shmyhal said.
He said that the fund would be financed equally by the U.S. and Ukraine, on a 50/50 basis.
“The U.S. will make financial contributions or provide new military aid, such as air defense systems. Ukraine’s contribution will consist of 50% of royalties from new licenses for oil, gas, and critical mineral extraction. Revenues from ongoing projects will not be included in the fund. This is important for our state budget,” he added.
Shmyhal stressed that for the first ten years, the fund’s profits will not be withdrawn from Ukraine but will be reinvested in the country.
“These profits will be reinvested in natural resource extraction, infrastructure, or processing. These terms have been agreed upon by the sides and are reflected [in the agreement]. The fund will also ensure commercial procurement under ‘take-or-pay’ terms, meaning demand for the produced goods is guaranteed,” he said.
He also clarified that the agreement contains no discriminatory clauses against other partners, nor does it include any provisions forcing Ukraine to sell goods or resources to U.S. companies at disadvantageous prices.
“Sixth, the fund, through the U.S. International Development Finance Corporation (DFC), will attract cutting-edge American and European technologies, accelerating Ukraine’s recovery and modernization. Seventh, the agreement includes no debt obligations for Ukraine. We do not recognize past U.S. grant aid – provided under Congressional decisions – as debt,” he said.
According to Shmyhal, the fund’s income will not be taxed by either Ukraine or the United States.
“Critical minerals exported to the U.S. will be exempt from duties, offering unique opportunities to grow trade. Ninth, the agreement does not conflict with Ukraine’s other international commitments. It does not hinder EU integration or future EU membership. We will invite European companies and investors to join. The agreement fully reflects our formula: united in defense, united in recovery,” he concluded.
Archival photo: Denys Shmyhal / Telegram
Source: Shmyhal in parliament on US deal: All natural resources remain under Ukraine's control
