WHAT’S IN THE DEAL?
Under the terms of the deal announced on Wednesday, Ukraine and the United States will establish a joint Reconstruction Investment Fund.
The fund will be controlled by a company with “equal representation of three Ukrainian and three American board members,” the US Treasury Department said in a statement.
The agreement covers 57 types of resources, including oil and gas.
If the United States decides to buy the resources, they will be given “first choice to either acquire them or designate the purchaser of our choice,” the Treasury Department said.
The new fund “will receive 50 per cent of royalties, license fees, and other similar payments from natural resource projects in Ukraine,” according to the US Treasury.
Its profits will be invested exclusively in Ukraine for the first 10 years, after which profits “may be distributed between the partners,” Kyiv said.
Source: CNA
