Agreement on mineral resources: The Ukrainian Parliament approved amendments to the Budget Code

According to Slovo i Dilo, the Verkhovna Rada has amended the Budget Code of Ukraine to implement the agreement with the United States on establishing the American-Ukrainian Recovery Investment Fund.

As reported by Yaroslav Zheleznyak, the draft law was supported in its second reading by 309 members of parliament.

He noted that the text of the draft law remained virtually unchanged before the second reading.

Ukraine’s contribution will consist of half of the funds received after the agreement comes into effect from:

• royalties on mineral extraction under new licenses;
• issuance of new permits for subsoil use;
• sale of the state’s share of production under new production-sharing agreements.

Recall that in May, Ukraine and the United States signed an agreement on mineral extraction. The full text of the agreement can be found here.

On May 8, the Verkhovna Rada ratified the cooperation agreement with the U.S. on mineral extraction. Ratification by the U.S. Congress is not required, as the main activities of the investment fund will be conducted under Ukrainian law.

On May 23, Ukraine and the U.S. completed all necessary procedures to launch the Recovery Fund under the subsoil agreement.