Do the details of the subsoil agreement with the US ensure parity?

Thursday, May 8, 2025
Do the details of the subsoil agreement with the US ensure parity?

The framework intergovernmental agreement between Ukraine and the US apparently contains two unpublished documents that were signed in Washington. According to these documents, the American side will receive all information that could potentially interest investors first, will have three months to evaluate their interest, and only if they decline to proceed can others take advantage of the opportunity. However, even after waiting for three months, investors cannot obtain more favorable financial conditions than those offered to American investors for the next six months.

A similar situation exists with product purchases – the Ukrainian side will not be able to offer better prices than those that the Americans decline for another six months. Analysts suggest that such conditions would reduce Ukraine’s attractiveness for investors.

Additionally, the joint fund will be managed by a council with an equal number of representatives from Ukraine and the US, assisted by four committees, where parity diminishes significantly:

  1. Investment Committee – three US managers and two Ukrainian managers
  2. Administrative Committee – three US managers and two Ukrainian managers
  3. Audit Committee – two US managers and two Ukrainian managers
  4. Project Search Committee – three Ukrainian managers and two US managers

Thus, Ukraine will only be responsible for searching for projects, while a significant number of issues will be decided solely by US managers.

 

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