Partnership Agreement sends signal to Russia of US interest in Ukraine's long-term success – White House
The Agreement on the Establishment of the United States –Ukraine Reconstruction Investment Fund launches a partnership for the reconstruction and long-term economic success of Ukraine, which will bring long-term benefits to both countries, according to a news release published on the official White House website on Thursday.
"This partnership between the United States and Ukraine establishes a fund that will receive 50% of royalties, license fees, and other similar payments from natural resource projects in Ukraine. That money will be invested in new projects in Ukraine, which will generate long term returns for both the American and Ukrainian peoples. As new projects are identified, resources in the fund can be quickly allocated towards economic growth, job creation, and other key Ukrainian development priorities," the statement reads.
The partnership will be controlled by a company with equal representation of three Ukrainian and three American board members, who will collaborate on the allocation of fund's resources. The U.S. Treasury Department and the U.S. Development Finance Corporation (DFC) will work with the government of Ukraine to finalize governance and advance this partnership. The U.S. DFC will work together with the Ukrainian government organization, the Agency on Support Public-Private Partnership.
"The partnership will also bring the highest levels of transparency and accountability to ensure that the people of Ukraine and the United States are able to enjoy the benefits of Ukraine's reconstruction," the White House said.
Natural resource projects will include the extraction of minerals, hydrocarbons, and the development of related infrastructure. "If the United States decides to acquire these resources for ourselves, we will give first choice to acquire them or designate a purchaser of our choice," the press release reads.
It is emphasized that no state, company, or individual that has financed the Russian military machine will be allowed to benefit from Ukraine's recovery, including through participation in projects supported by the Fund.
"Importantly, this partnership sends a strong signal to Russia – the United States has skin in the game and is committed to Ukraine's long-term success," the White House said.
The statement noted that the partnership represents the economic interest of the United States in ensuring a free, peaceful and sovereign future for Ukraine. "This partnership will bring long-term returns for both countries: President Trump envisioned this partnership between the Americans and the Ukrainians to show both sides’ commitment to lasting peace and prosperity in Ukraine," the White House said.
As reported, on Wednesday, the United States and Ukraine signed an agreement on the establishment of the Ukrainian-American Reconstruction Investment Fund, which contains 12 articles and a list of critical materials, is of a financial nature, and the Ukrainian participant in the fund will be the Agency for Support of Public-Private Partnerships (PPP) under the Ministry of Economy.
