10:11 27.02.2025

Joint U.S.-Ukraine Fund to be replenished through new projects via state budget – Minister of Economy

2 min read
Joint U.S.-Ukraine Fund to be replenished through new projects via state budget – Minister of Economy

Ukraine's Joint Recovery Investment Fund with the U.S. will be replenished through budget revenues generated from new projects implemented by the fund, according to First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko.

"Our vision for the fund is that revenues from new projects will enter the budget as taxes, with half of these funds being allocated to the fund itself," she stated on Facebook while commenting on the government-approved draft bilateral agreement outlining the rules and conditions of the Ukraine-U.S. recovery investment fund.

Svyrydenko explained that the mechanism is straightforward: investments come in, a new project is launched, it generates revenue for the budget, and half of these revenues are directed to the fund. This structure ensures the fund operates effectively, provided there is continuous investment.

"These projects may involve mineral resource deposits, hydrocarbons, oil, natural gas, and other extractive industries, as well as the associated infrastructure," she added.

She emphasized that funds from the investment pool will be reinvested into the Ukrainian economy for new recovery projects. Over time, as the fund accumulates sufficient revenues, it will begin distributing returns to its stakeholders.

The first deputy prime minister also highlighted that all financial limits were removed during the drafting process. "Various figures were proposed at different stages, but after lengthy negotiations, we eliminated all limits and any provisions that could be interpreted as debt obligations," she stated.

"The specifics of how the fund will operate – including the timeline for new projects, the types of infrastructure eligible for revenue sharing, and the schedule and amount of payouts to investors – will be determined in the agreement, which will be finalized after the document is signed," she concluded.

She noted that the framework agreement approved by the government serves as the foundation for a series of additional agreements, which Ukraine hopes will include clear security guarantees and continued defense and other forms of support.

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