According to the newspaper, Kiev agreed to sign an agreement on the joint development of mineral resources, including oil and gas, after the USA waived its demand for the right to receive $500bn in potential revenues from the exploitation of the resources.
The final version of the agreement dated February 24, which was reviewed by the newspaper, envisages the creation of a fund to which Ukraine will contribute 50% of revenues from the “future monetization” of state mineral resources, including oil and gas, as well as related logistics. The fund will invest in projects in Ukraine.
The agreement excludes mineral resources that already generate revenue for the Ukrainian budget – that is, it will exclude the existing activities of Naftohaz or Ukrnafta.
At the same time, the agreement lacks any mention of security guarantees from the United States, which Kiev initially insisted on in exchange for agreeing to the deal, the FT notes. Also, the document does not specify such issues as the size of the U.S. share in the fund and the terms of “joint ownership” – they will be agreed later.
As noted by the interlocutors of the publication, the deal is only a “framework agreement” and that no revenues will not be transferred until the fund is established, which gives time to resolve potential differences, in particular, to agree on the jurisdiction of the agreement.
The FT also pointed out the Trump administration’s original terms. They were to establish an investment fund for reconstruction in which the US “retains a 100% financial interest” and Ukraine was to contribute 50% of the fund’s revenues from the extraction of mineral resources, including oil, gas and related infrastructure, until it paid $500 billion.
