On May 8, the Ukrainian Parliament plans to ratify the economic partnership agreement with the US regarding the establishment of a Reconstruction Investment Fund.

The agreement with the US entails the establishment of the Reconstruction Investment Fund, which will be jointly managed by Kyiv and the Washington. The fund will be registered in the US, but the account for contributions will be established in Ukraine and denominated in hryvnia.

The main provisions of the agreement include:

1. The fund serves as an investment instrument in Ukraine, not as a mechanism for transferring assets. All natural resources will remain Ukrainian property.
2. The fund will be supported by both the US and Ukraine in a 50:50 ratio. Contributions from the US will come in the form of monetary support or additional military assistance. Ukraine will commence its contributions to the fund no earlier than 2030.
3. During the first 10 years, profits from the fund will not be extracted from Ukraine but will be reinvested within the country. The fund will ensure commercial purchases of products on a “take or pay” basis, guaranteeing demand for products. The White House noted that the US has secured priority rights for purchasing Ukrainian resources or determining their buyers.
4. The fund will utilize the DFC, an American agency, to attract cutting-edge American and European technologies, which will expedite Ukraine’s recovery and modernization.
5. The agreement does not reference any debt obligations for Ukraine.
6. The fund’s income will not be subject to taxation. Critical minerals exported to the US will not incur duties, creating unique opportunities for trade development under current trade conditions.
7. The agreement does not conflict with Ukraine’s other international obligations.