First Deputy Prime Minister - Minister of Economy Yulia Svyrydenko explained the mechanism of the Investment Fund for Reconstruction with the United States and noted that the Fund itself will not extract any minerals. She said this during a press conference on Thursday, reports UNN.
Details
"To launch the Fund, it is necessary to finalize a number of other documents at the technical level, which will no longer require signing by government representatives or ratification by the Verkhovna Rada, so it is very important for us that parliamentarians support this agreement today," Svyrydenko said.
The Deputy Prime Minister also explained how the mechanism of the Investment Fund for Reconstruction with the United States will look like.
"For those who extract and receive licenses, nothing will change. Licenses are obtained on the same terms as required by law, and this continues. What may change, and I think for the better, when and if this agreement enters into force: when you have a license for mining, for example, minerals, you receive it on a competitive basis, as it should be, then you understand that you do not have enough resources to implement this project, and you need to attract external financing, you apply to the Fund to receive this financing," Svyrydenko said.
According to her, information is then provided on the terms on which they are willing to attract financial resources, a description of the project is provided, and the Fund may decide to finance or not finance this project.
"The Fund itself does not extract anything, the Fund does not participate in privatization, does not participate in production sharing agreements. The Fund can finance this project. The only condition is that if the Fund refused you and does not see interest in this project, you can seek funding from other investors, but the conditions you will offer them cannot be significantly better than what you offered the Fund. Therefore, this does not affect the companies that extract in any way, this does not affect the issuance of licenses in any way. This affects the mechanism of finding financing and the sale of finished products," Svyrydenko emphasized.
She noted that the Americans' interest is that they are the first to receive information about investment opportunities in the field of mineral resources.
"The Americans' interest is that they are the first to receive information about investment opportunities in the field of mineral resources, oil and gas. If you have your own licenses, your own resources for extraction, you do not need external financing, then you can extract independently and calmly (the company - ed.)," Svyrydenko said.
Deputy Minister of Economy - Trade Representative of Ukraine Taras Kachka added that a tender, an auction will be announced for a new field according to the usual procedure.
"For example, a Ukrainian, American or French company wins, then, if it needs funds, it applies to the Fund," Kachka said.
Context
Ukraine has signed an agreement with the United States to create an Investment Fund for Reconstruction, which is called the agreement on mineral resources.
Prime Minister Denys Shmyhal reported that the agreement is based on five key principles.
On May 2, the Cabinet of Ministers submitted to the Verkhovna Rada a draft law on the ratification of the agreement between Ukraine and the United States on mineral resources.