According to the first point of the agreement, the Ukrainian and US governments will jointly make an Investment Reconstruction Fund to guarantee lasting peace in Ukraine. The Fund will be managed by both parties and the details of its operation and ownership will be specified in a separate agreement. U.S. participation in fund management and the scope of its representatives' mandates will be in line with American law. Neither organization may sale or transfer its participation without the written consent of the another party.
The riches hidden in the earth
The Fund will collect and reinvest funds, with the exception of expenditure incurred, and draw on the future monetaryisation of natural resources belonging to Ukraine. The Government of Ukraine undertakes to transfer 50% of its gross from the exploitation of these resources to the Fund, including oil, gas, minerals and associated infrastructure.
Ukrainian deposits are worth about $15 trillion and cover immense resources of natural materials. The country has 30% of the world's titanium deposits, which are utilized in atomic ships, as well as valuable for the steel manufacture and graphite electrical engineering. There are besides 52 iron ore deposits in Ukraine, each containing over a billion tons of natural material, as well as rich manganese and lithium ore deposits.
Contributions to the Fund will be reinvested in Ukraine at least erstwhile a year to advance the security, defence and welfare of the state – written in the contract.
Development and security
According to the 4th point of the agreement, the US government commits to long-term financial support for Ukraine's development. As we read, Under the current laws of the United States, the US government will support long-term financial commitments for the improvement of a unchangeable and economically prosperous Ukraine.
The fund is besides to invest in projects in Ukraine and attract investors.
A key aspect of the agreement is to guarantee that the Fund operates in accordance with global regulations and the process of Ukraine's accession to the European Union. The agreement besides includes control mechanisms to prevent the circumvention of sanctions and another global restrictions.
The agreement ends with an appeal to start talks as shortly as possible to set a detailed timetable for the Fund.
