Subsoil Agreement With US: Important Details On Security Guarantees For Ukraine Revealed
4- 2.05.2025, 14:06
- 5,528
Each new military aid will be considered a capital contribution.
The Ukrainian government would be grateful if the parliament has time to ratify the agreement on natural resources with the United States by May 8, but the Verkhovna Rada is to determine when it can happen. This was said by Prime Minister of Ukraine Denis Shmygal during the Hour of Questions to the Government in the Verkhovna Rada of Ukraine.
Shmygal noted that there is a preliminary agreement that the Investment Fund will be registered in the United States, but will operate in Ukraine, and the main account of the fund, where Ukraine will credit its contribution, will be opened in Ukraine in hryvnias.
He said that the first agreement should be ratified, and the subsequent ones will be of an implementation nature, that is, they will be commercial agreements that will not require ratification.
Shmygal also noted that there are no formal defense guarantees for Ukraine in the agreement with the United States:
"But every new military aid provided by the United States to Ukraine is considered a capital contribution, and this encourages this U.S. administration to continue and not stop supplying us with weapons, intelligence. We have signed assurances."
He assures that under the agreement, all Ukrainian natural resources remain with Ukraine, and the scope of the agreement does not cover state-owned enterprises and privatization. "The fund will be filled by the United States and Ukraine in a 50/50 proportion. On the U.S. side, it will be cash contributions or new military aid, such as air defense systems. Ukraine's contribution is 50% of the rent from new, I emphasize, new licenses for the extraction of oil, gas and critical minerals," the Ukrainian prime minister said.
He noted that revenues from already launched projects are not included in the fund. Shmygal said that for the first 10 years, the fund's income is not withdrawn from Ukraine, but reinvested in Ukraine, including in natural resource extraction, infrastructure or processing. He said the fund will guarantee commercial purchases of products on a take-or-pay basis, meaning there will be guaranteed demand for the products.
He noted that the fund's income is not taxed by the United States and Ukraine.
Shmygal noted that the agreement will not be a barrier to continued European integration and EU membership, European companies and investors will be invited to cooperate.
He also said that the annexes to the agreement include a list of subsurface resources "on the entire sovereign territory of Ukraine".
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