Ukraine and the USA are creating a joint investment fund for reconstruction, - Honcharenko

Ukraine and the USA are creating a joint investment fund for reconstruction, - Honcharenko

Ukrainian MP Honcharenko revealed the details of the agreement between Ukraine and the USA regarding the establishment of a joint investment fund named "US-Ukraine Reconstruction Fund".

The fund is financed by two sources:

1. The US contribution includes financial and material assistance already provided after 2022, as well as technical and managerial support from the American corporation DFC.

2. The Ukrainian contribution involves the transfer of part of the revenues from the use of natural resources (Royalty Interest), including gas, oil, and other natural resources extracted in Ukraine.

This applies to all projects regardless of ownership form. The private sector is also obliged to comply with the conditions of the fund.

Ukraine undertakes to:
- provide the US with full information on all resource extraction projects,
- grant the fund priority rights on new projects,
- ensure the US has priority rights to purchase resources,
- prohibit the sale of resources to strategic competitors of the US,
- create special conditions for American companies even in the private sector.

Furthermore, Ukraine must present all new infrastructure projects to the Fund for consideration. The Fund will have priority rights to participate in such a project.

The US exercises control over the fund. The general partner is appointed by the American side, and in the board of 5 members, 3 represent the US. No decision can be made without their agreement.

The fund can utilize assets in four ways:

1. Reinvestment in Ukraine (with US approval).
2. Profit distribution between partners (initially the US recovers its contribution plus 4% annual interest, after which the remaining funds are allocated to Ukraine).
3. Transfer of assets instead of monetary payments.
4. Free use of profit by the American side, including transferring funds abroad.

All payments are made in US dollars and transferred to overseas accounts of the fund, which is under the control of American management.