Ukraine-U.S. Reconstruction Investment Fund to be registered in USA, but contributions to be made in hryvnias
The Ukraine-U.S. Reconstruction Investment Fund will be registered in the United States, but the account for contributions will be opened in Ukraine in the national currency, Ukrainian Prime Minister Denys Shmyhal announced.
"Where will it be registered? There is an agreement that the Fund will be registered in the United States, but it will operate in Ukraine, and the primary account into which Ukraine will deposit its contribution will be opened in Ukraine in hryvnias. This is an important point," he said during the government's Q&A session in the Verkhovna Rada on Friday.
The Prime Minister also noted that the fossil fuel agreement with the United States is indefinite in duration, though the parties may mutually agree to terminate it after ten years.
"We would like this agreement to be in effect for more than ten years – decades, ideally – because for us, this is a direct investment fund and a strong investment tool," he added.
Shmyhal further clarified that the agreement applies to the entire sovereign territory of Ukraine and that an annex will list all exclusive mineral resources covered by the agreement.
As reported earlier, on Wednesday, the United States and Ukraine signed an agreement to establish the Ukraine-U.S. Reconstruction Investment Fund. The agreement comprises 12 articles and includes a list of critical materials. It is financial in nature, with Ukraine's participant in the fund being the Public-Private Partnership (PPP) Support Agency, which operates under the Ministry of Economy.
Once the agreement is ratified, the fund will be established through a partnership between the U.S. Development Finance Corporation (DFC) and Ukraine's PPP Agency.