Kyiv-Washington minerals deal to override Ukrainian laws in case of conflict

The new minerals deal between Ukraine and the US has been revealed, with provisions that ensure the agreement will take precedence over Ukrainian national law if any discrepancies arise.

The details were disclosed in a draft of the agreement published by Ukrainian lawmaker Yaroslav Zheleznyak on his official Telegram channel, Caliber.Az reports via Russian media.

The draft states that the Ukrainian government will ensure the agreement holds priority over domestic law in cases of inconsistency. This provision is especially significant given the economic activities tied to the partnership, which are set to take place within Ukraine’s borders.

“The Ukrainian government guarantees that in the event of any inconsistency between the laws of Ukraine and the terms of this agreement, the agreement will take precedence,” the document states. This gives the US and Ukraine a level of assurance that the terms agreed upon will be honoured, even if they conflict with existing Ukrainian laws.

Moreover, the agreement includes a clause confirming that the Ukrainian government will be unable to use its internal laws as a justification for failing to meet its obligations under the agreement. 

Earlier, Ukraine’s First Deputy Prime Minister and Minister of Economy, Yuliia Svyrydenko, announced that under the agreement, Ukraine will contribute 50 per cent of all revenues from new rent and new licenses for mineral extraction on newly designated sites to the bilateral investment fund being established. Both the US and Ukraine will have equal voting rights in the management of the fund.

The deal does not entail any direct debt obligations for Ukraine to the US. For the first ten years of operation, the fund will not distribute dividends; instead, all earnings will be reinvested within Ukraine. The investments will focus on the development and processing of mineral resources, as well as the improvement of infrastructure.

By Naila Huseynova