Ukrainian parliament greenlights budget funding for natural resource agreement with US

Ukraine’s agreement with the US concerning the use of its natural resources will require state budget allocations, with the Ukrainian parliament’s Committee on Budget recently approving the relevant legislation.

Head of the Committee on Budget, Roksolana Pidlasa, announced the news on Facebook, confirming that the committee has recommended adopting amendments to the Budget Code to implement the "mineral resources" agreement (# 3256), Caliber.Az reports via Ukrainian media. 

The amendments are crucial for the creation of the US-Ukrainian Reconstruction Investment Fund, which will be partially funded by Ukraine’s contribution. Pidlasa noted that half of the funds generated from the agreement will be allocated to the fund, derived from revenues tied to the extraction of mineral resources such as oil, gas, gas condensate, and other resources listed in Appendix A of the agreement.

Furthermore, proceeds from new licenses for subsoil use and from the sale of the state’s share in new production-sharing agreements will also contribute to this fund. “These funds will be directed into a special state budget fund, and based on decisions by the Ministry of Economy or another relevant authority, will be transferred to the Reconstruction Fund,” Pidlasa added.

By Naila Huseynova