Zelenskyy signs law amending Budget Code for mineral agreement with US
President Volodymyr Zelensky has signed a law amending the Budget Code to implement an agreement with the United States on the creation of the US-Ukraine Reconstruction Investment Fund.
Source: website of the Verkhovna Rada (Ukrainian Parliament)
Details: The law provides for the proper implementation of the ratified agreement and the introduction of a mechanism to strengthen the strategic partnership between Ukraine and the United States for the long-term reconstruction and modernisation of the state in response to the large-scale destruction caused by the Russian Federation.
Under the terms of the agreement, Ukraine's contribution will consist of half of the funds received after the agreement comes into force from:
- rent for the extraction of minerals (oil, gas, gas condensate and everything specified in Appendix ‘A’ to the Agreement) from new licences;
- issuance of new special permits for subsoil use;
- sale of the state's share of production under new production sharing agreements.
The law stipulates that these funds will be credited to a special fund of the state budget and, by decision of the chief administrator, will be transferred to the Reconstruction Fund.
Background:
- On 1 May, Ukraine's Economy Minister Yuliia Svyrydenko and US Secretary of the Treasury Scott Bessent signed a minerals deal.
- On 8 May, the Verkhovna Rada ratified the agreement establishing a joint investment fund between Ukraine and the US.
- President Volodymyr Zelenskyy signed the ratification of the mineral deal with the US on 12 May.
- On 4 June, the Verkhovna Rada finally adopted a law amending the Budget Code to implement the mineral agreement between Ukraine and the United States.
Support Ukrainska Pravda on Patreon!