Ukraine-US deal does not provide for transfer of subsoil use rights
Pravda Ukraine
The agreement between Ukraine and the United States does not provide for the transfer of subsoil use rights or any property rights.
Source: Olha Stefanishyna, Ukraine’s Deputy Prime Minister for European and Euro-Atlantic Integration and Minister of Justice, in an interview with pravo.ua
Quote from Stefanishyna: “If the discussion were about the use of Ukraine’s subsoil or the right to Ukrainian subsoil, then, of course, this issue would not only involve ratification but, indeed, a referendum. We all know the constitutional truth that the subsoil belongs to the people of Ukraine.”
Details: Stefanishyna said that the agreement concerns the distribution of revenues to the state budget, part of which is generated in the Fund. After the signing of this agreement, no legal consequences will follow.
Quote from Stefanishyna: “In other words, Ukraine does not incur obligations regarding the actual transfer of funds or their handover. Such obligations will only arise after the agreement on the creation of the Fund is concluded and all necessary procedures are completed so that the institution can begin operations once the agreement takes effect.”
Details: She noted that the agreement intends to outline in the future agreement a specific procedure for distributing revenues to the state budget.
“The only thing related to Ukraine’s subsoil is that the revenues to the state budget from subsoil use will be directed to the Fund and reinvested in the same sectors from which the funds are generated,” Stefanishyna emphasised.
Background:
- The previous subsoil agreement involved the creation of a commercial fund, in which the USA would have 100% control and Ukraine would allocate funds to it.
- Ukraine’s President Volodymyr Zelenskyy stated that he does not intend to recognise an agreement under which Ukraine would owe the United States US$500 billion. He also stated that the mere presence of American businesses in Ukraine would not guarantee security.
- On 28 February, Ukraine’s President Volodymyr Zelenskyy and US President Donald Trump failed to sign a minerals deal.
- However, Ukraine expects to sign an agreement with the United States to create a joint investment fund, the signing of which was disrupted on 28 February.
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