18:31 14.06.2024

Security Agreement with USA obliges Ukraine to strengthen foreign direct investment controls

2 min read
Security Agreement with USA obliges Ukraine to strengthen foreign direct investment controls

According to the text of a bilateral security agreement signed between Ukraine and the United States on June 13, Ukraine must strengthen foreign direct investment controls and continue to reform Ukroboronprom.

"Ukraine commits to strengthen foreign direct investment controls based on national security considerations," the document says.

Also, "Ukraine commits to continuing its reform of state defense conglomerate JSC Ukrainian Defense Industry to align with international business best practices and Organization for Economic Cooperation and Development standards."

It is emphasized in the document that "Ukraine further reaffirms its commitment to ensuring the security of United States-provided defense articles and technology in accordance with DOD's [Department of Defense] Golden Sentry enhanced end-use monitoring (EEUM) requirements."

In particular, as security conditions allow, Ukraine further commits to do the following:

"Conducting a comprehensive inventory of all remaining EEUM items in Ukraine's possession;

Providing DOD with access to military installations across Ukraine at which EEUM items are stored, to allow for the resumption of all in-person verification activities; and

Supporting future EEUM requirements the United States may identify to maintain reasonable assurances of the security of advanced conventional weapons in a postwar environment.

The Participants intend to continue the exchange of information on threats related to illicit arms proliferation."

The United States, for its part, is committed to supporting Ukraine in developing a modern, NATO-interoperable defense force capable of reliably deterring and, if necessary, defending against future aggression.

It is expected that the future Ukrainian Defense Forces will rely on both modern equipment and equipment that has been in service. To maintain the sustainability of the Ukrainian defense forces, both sides intend to standardize equipment across all their formations.

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