The Cabinet of Ministers proposes to the Verkhovna Rada to amend the Budget Code to implement the agreement with the US on the establishment of the United States-Ukraine Reconstruction Investment Fund (the agreement on minerals) regarding the allocation of Ukraine's contribution to the fund. The relevant bill No. 13256 was registered in the parliament on May 2, the Ukrainian News agency reports.
The bill provides for the introduction of a mechanism for transferring revenues from the use of natural resources to a special fund of the state budget of Ukraine for further allocation to the US-Ukraine Reconstruction Investment Fund, established in accordance with the agreement with the US government.
In particular, the bill provides for the allocation to the special fund of the state budget:
50% of the rent for the use of subsoil for the extraction of minerals;
50% of the fee for issuing special permits for the use of subsoil and 50% of the proceeds from the sale of such permits;
50% of funds from the use (sale) of the part of the produced products that remains in the ownership of the state in accordance with the production sharing agreements.
The bill provides that revenues from natural resource assets include funds received exclusively from or in connection with the issuance of new licenses or special permits after the entry into force of the Agreement on the Reconstruction Investment Fund for Ukraine, but not earlier than the date of entry into force of the Agreement on Limited Partnership, or revenues received from the exploitation of licenses or special permits issued before the entry into force of the said agreements for Ukraine, but which were not exploited for industrial purposes as of the date of entry into force of the said agreements.
At the same time, it is proposed that revenues received from the Reconstruction Investment Fund and revenues received from russia or its representatives as reparations for the invasion of Ukraine be included in the revenues of the general fund of the budget of Ukraine in full.
This Law shall enter into force on the date of entry into force of the agreement on the establishment of the US-Ukraine Reconstruction Investment Fund, but not earlier than the date of entry into force of the agreement between the United States International Development Finance Corporation and the Public-Private Partnership Agency on the establishment of a Reconstruction Investment Fund in the form of a limited partnership.
The Cabinet of Ministers shall, within one month from the date of entry into force of this Law, ensure the approval of the procedure for paying contributions to the Reconstruction Investment Fund, opening a new budget program if necessary, and making changes to the state budget of Ukraine.
As the Ukrainian News agency earlier reported, on the night of May 1 (Kyiv time), Ukraine and the United States signed an agreement on the establishment of the US-Ukraine Reconstruction Investment Fund to finance projects in the field of development and extraction of minerals, oil and gas, as well as investments in related infrastructure or processing. Ukraine will manage the Fund jointly with the United States.
The Cabinet of Ministers proposes that the Rada ratify the agreement with the US on minerals.
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