Latest news with #ReconstructionInvestmentFund
Yahoo
4 days ago
- Business
- Yahoo
Ukraine passes Budget Code changes to implement US mineral deal
Ukraine's parliament approved key amendments to the Budget Code on June 4 to implement the landmark minerals agreement with the United States, lawmaker Yaroslav Zhelezniak announced. The legislation, supported by 309 members of parliament, enshrines financial provisions critical to executing the U.S.-Ukraine deal signed on April 30 and ratified by Kyiv on May 8. The agreement grants the U.S. special access to strategic mineral development projects in Ukraine, including lithium, titanium, and rare earth elements vital to defense, aerospace, and green energy industries. The approved changes require Ukraine to contribute 50% of revenues from several sources to the fund. These include rent payments for mineral extraction from new licenses, fees from new subsoil use permits, and proceeds from state production shares under new production-sharing agreements. The funds will be collected in a dedicated budget account and transferred to the Reconstruction Investment Fund at the discretion of the fund's chief administrator. The fund will be co-managed by Ukraine and the U.S. under an equal partnership model. Washington will be represented by the U.S. International Development Finance Corporation (DFC), while Kyiv will be represented by Ukraine's Public-Private Partnerships Agency. The agreement marks a new phase in U.S.-Ukraine economic cooperation and has been months in the making. Protracted negotiations led to the removal of controversial provisions that Ukrainian officials feared could allow for exploitation of Ukraine's natural resources. Prime Minister Denys Shmyhal said in April that future U.S. military aid could be counted as contributions to the fund, though previously allocated assistance will not apply. Read also: Inside Russia, calls for peace come with conditions — and Kremlin talking points We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
23-05-2025
- Business
- Yahoo
Ukraine, US officially launch joint Reconstruction Investment Fund
Ukraine and the United States have officially launched a joint Reconstruction Investment Fund as part of their minerals agreement, Economy Minister Yuliia Svyrydenko announced on May 23. "The last step was a diplomatic note from the United States, which I personally received this morning from Julie S. Davis, the U.S. Chargé d'Affaires. The Fund is officially launched," Svyrydenko wrote in a Facebook post. The fund is a core component of the broader U.S.-Ukraine minerals agreement, signed on April 30. Under the deal, the U.S. has special access to projects involving Ukraine's reserves of lithium, titanium, and other critical minerals. These resources are considered critical to global supply chains for the defense, aerospace, and green energy industries. The fund will be jointly managed by Ukraine's Public-Private Partnerships Agency and the U.S. International Development Finance Corporation (DFC). While both sides have declined to disclose full operational details, officials have framed the project as a vehicle for long-term reconstruction and foreign investment. The agreement has been months in the making, following a contentious negotiation process that at times strained bilateral ties. The final version removed controversial provisions that Ukrainian officials and experts feared could lead to exploitation of Ukraine's mineral wealth. Two additional agreements to operationalize the fund were signed on May 13. President Volodymyr Zelensky signed the ratified minerals agreement on May 12. Ukraine's Prime Minister Denys Shmyhal said on April 27 that future U.S. military assistance may be counted as part of the fund's resources, although past aid will not be included. Despite lacking explicit security guarantees from the U.S. — a key priority for Kyiv — the agreement signals a new phase in U.S.-Ukraine economic cooperation. Read also: Editorial: Russia just said it doesn't want peace in Ukraine. This is what you need to do We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
13-05-2025
- Business
- Yahoo
Parliament backs amendments for implementing US minerals deal in 1st reading
The Ukrainian parliament supported Budget Code amendments to implement the minerals agreement with the U.S. in the first reading, lawmaker Yaroslav Zhelezniak said on May 13. This marks another step toward enacting the wide-ranging and long-contested economic agreement between Ukraine and the U.S. The minerals deal, signed on April 30 and ratified by Ukraine on May 8, establishes a Reconstruction Investment Fund jointly managed by Kyiv and Washington and gives the U.S. special access to projects developing Ukraine's vast deposits of critical minerals, including lithium, titanium, and rare earth elements. "Amendments to the Budget Code are needed to implement the provisions on funding the U.S.-Ukrainian Reconstruction Investment Fund," lawmaker Roksolana Pidlasa said. Ukraine's contribution will consist of half of the funds received after the agreement enters into force and will be sourced from rents for resource extraction under new licenses and issuance of new permits, the lawmaker added. The changes were supported by 286 lawmakers, Zhelezniak said, adding that the deadline for submitting additional amendments was cut short. Ukrainian legislation has to pass two readings in the parliament and receive presidential signature before entering into force. Read also: 'Not what Putin was expecting' — What we know (and don't know) about Ukraine, Russia peace talks in Istanbul We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
12-05-2025
- Business
- Yahoo
Ukraine finalizes ratification of US minerals deal, paving way for joint investment fund
Ukraine completed the ratification of the U.S.-Ukraine minerals agreement on May 12, according to the Verkhovna Rada's website. President Volodymyr Zelensky signed the deal on May 12. The finalization caps a months-long, often contentious negotiation process between Kyiv and Washington over critical minerals cooperation. The deal is aimed at deepening economic ties, boosting Ukraine's reconstruction, and positioning the country as a supplier of strategic resources to the U.S. The Verkhovna Rada ratified the agreement on May 8, with 338 lawmakers voting in favor, according to lawmaker Yaroslav Zhelezniak. Signed on April 30, the deal establishes a Reconstruction Investment Fund jointly managed by Kyiv and Washington under an equal partnership model. The agreement gives the U.S. special access to projects developing Ukraine's vast deposits of critical minerals, including lithium, titanium, and rare earth elements. Following the signing, both sides declined to disclose full operational details of the fund. Prime Minister Denys Shmyhal previously said future U.S. military aid could be counted as contributions to the fund, but stressed that past assistance would not be included. The agreement emerged after months of difficult talks that strained relations between the U.S. and Ukraine. Plans to sign the deal in late February collapsed following a heated White House argument between Zelensky and U.S. President Donald Trump. The final version excludes controversial provisions from earlier drafts that experts warned could have exploited Ukraine's resources. However, it does not include explicit security guarantees from the U.S., a long-standing priority for Kyiv. Read also: Upping pressure on Putin, Trump says 'both leaders' will be at Russia-Ukraine peace talks in Istanbul We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
06-05-2025
- Business
- Yahoo
Ukrainian parliamentary committee endorses US minerals deal
A critical minerals deal between Ukraine and the United States has been ratified by the Ukrainian Parliament's Foreign Affairs Committee. Source: Ukrainian MP Yaroslav Zhelezniak Details: Zhelezniak noted that the committee's decision included a key provision: Any additional arrangements on establishing the United States-Ukraine Reconstruction Investment Fund shall not contradict this Agreement. This Agreement is valid throughout the entire territory of Ukraine within its internationally recognised borders. He added that 11 committee members voted in favour, one abstained and two were absent. Zhelezniak also noted that a full parliamentary vote on ratification is set for 8 May. Background: On 1 May, Ukraine's Economy Minister Yuliia Svyrydenko and US Treasury Secretary Scott Bessent signed the minerals deal. On 2 May, the Ukrainian government submitted the Kyiv-Washington agreement on the establishment of the Reconstruction Investment Fund to parliament for ratification. On the same day, Ukraine's Prime Minister Denys Shmyhal expressed hope that parliament would ratify the minerals agreement with the US by 8 May. Support Ukrainska Pravda on Patreon!
