Special Fund for Resource Revenues
The proposed legislation introduces a framework for transferring income from natural resource exploitation—including royalties, license fees, and production-sharing proceeds—into a special fund of the state budget. These funds will then be directed toward the Ukraine Reconstruction Investment Fund, jointly operated with the U.S. International Development Finance Corporation (DFC).
According to Article VI of the agreement, Ukraine must ensure the transfer of “agreed revenue” into this dedicated fund. The newly proposed legal mechanism is designed to fulfill this obligation and enable transparent co-financing of critical recovery projects.
What Revenues Will Be Transferred?
The "agreed revenue" includes:
-
50% of royalties and rent payments from the extraction of minerals of national importance.
-
50% of fees from special permits for subsoil use and proceeds from their sale.
-
50% of the state's share of output under production-sharing agreements.
These allocations will be used as Ukraine's contribution to the Reconstruction Investment Fund. Conversely, revenues derived from the fund itself or from future war reparations paid by Russia will remain in the general fund of the state budget and are not subject to transfer.
Public-Private Mechanism and Oversight
Funds from the state budget's special account will be transferred to the Agency for the Support of Public-Private Partnerships, a body under Ukraine's Ministry of Economy. This agency is tasked with transferring resources to the Ukrainian-American Fund, where they will be co-managed with U.S. representatives (3 from each side, per the agreement).
Provisions for Errors and Debt Cancellation
The bill also includes:
-
Procedures for reimbursing excess or mistaken payments of subsoil rent during the term of the agreement.
-
Cancellation of tax debts accrued during the term of the agreement, effective from the date of its termination.
What’s Next?
The law is essential for the activation of the joint investment fund, which is expected to channel billions of dollars into Ukraine’s recovery and strategic resource development. The ratification vote in the Verkhovna Rada is tentatively scheduled for May 8, 2025.
