It was billed as a resource agreement and that's definitely the case but it's not the full story as this portion highlights:
The Fund’s investment process will be designed so as to invest in projects in Ukraine and attract investments to increase the development, processing and monetization of all public and private Ukrainian assets including, but not limited to, deposits of minerals, hydrocarbons, oil, natural gas, and other extractable materials, infrastructure, ports, and state-owned enterprises as may be further described in the Fund Agreement.Now this is just a 'binding' draft so there will be much to work out and it needs to be ratified by Ukrainian parliament but it's going to be interesting.
The Government of the United States of America supports Ukraine’s efforts to obtain security guarantees needed to establish lasting peace. Participants will seek to identify any necessary steps to protect mutual investments, as defined in the Fund Agreement.
These are strange times.
BILATERAL AGREEMENT ESTABLISHING TERMS AND CONDITIONS FOR A RECONSTRUCTION INVESTMENT FUND:
WHEREAS the American people desire to invest alongside Ukraine in a free, sovereign and secure Ukraine;
WHEREAS the United States of America and Ukraine recognize the contribution that Ukraine has made to strengthening international peace and security by voluntarily abandoning the world's third largest arsenal of nuclear weapons;
NOW, THEREFORE, the Government of the United States of America and the Government of Ukraine (each, a “Participant”) hereby enter into this Bilateral Agreement Establishing Terms and Conditions for a Reconstruction Investment Fund to deepen the partnership between the United States of America and Ukraine, as set forth herein.
Neither Participant will sell, transfer or otherwise dispose of, directly or indirectly, any portion of its interest in the Fund without the prior written consent of the other Participant.
3. The Government of Ukraine will contribute to the Fund 50 percent of all revenues earned from the future monetization of all relevant Ukrainian Government-owned natural resource assets (whether owned directly or indirectly by the Ukrainian Government), defined as deposits of minerals, hydrocarbons, oil, natural gas, and other extractable materials, and other infrastructure relevant to natural resource assets (such as liquified natural gas terminals and port infrastructure) as agreed by both Participants, as may be further described in the Fund Agreement. For the avoidance of doubt, such future sources of revenues do not include the current sources of revenues which are already part of the general budget revenues of Ukraine. Timeline, scope and sustainability of contributions will be further defined in the Fund Agreement.
Contributions made to the Fund will be reinvested at least annually in Ukraine to promote the safety, security and prosperity of Ukraine, to be further defined in the Fund Agreement. The Fund Agreement will also provide for future distributions.
5. The Fund's investment process will be designed so as to invest in projects in Ukraine and attract investments to increase the development, processing and monetization of all public and private Ukrainian assets including, but not limited to, deposits of minerals, hydrocarbons, oil, natural gas, and other extractable materials, infrastructure, ports, and state-owned enterprises as may be further described in the Fund Agreement. The Government of the United States of America and the Government of Ukraine intend that the investment process will lead to opportunities for distribution of additional funds and greater reinvestment, to ensure the sufficient supply of capital for the reconstruction of Ukraine as set out in the Fund Agreement.
6. The Fund Agreement will include appropriate representations and warranties, including those necessary to ensure that any obligations the Government of Ukraine may have to third parties, or such obligations that it may undertake in the future, do not sell, convey, transfer pledge, or otherwise encumber the Government of Ukraine’s contributions to the Fund or the assets from which such contributions are derived, or the Fund’s disposition of funds.
7. The Fund Agreement will provide, inter alia, an acknowledgment that both the Fund Agreement and the activities provided for therein are commercial in nature.
8. The Fund Agreement will pay particular attention to the control mechanisms that make it impossible to weaken, violate or circumvent sanctions and other restrictive measures.
Contact persons responsible for preparing the Fund Agreement on the basis of this Bilateral Agreement are: from the Government of the United States of America: the Department of the Treasury; from the Government of Ukraine: Ministry of Finance and Ministry of Economy.
The Government of the United States of America supports Ukraine’s efforts to obtain security guarantees needed to establish lasting peace. Participants will seek to identify any necessary steps to protect mutual investments, as defined in the Fund Agreement.
Signed on 25 February 2025 in English and Ukrainian languages, both texts are equally authentic.
For the Government of the United States of America: Scott K. H. Bessent Secretary of the Treasury For the Government of Ukraine: Andrii Sybiha Minister for Foreign Affairs of Ukraine
This article was written by Adam Button at www.forexlive.com. Read More Details
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