Ukraine is preparing to lift the ban on arms exports: a decision already agreed with Volodimyr Zelensky, Forbes reports. It is said that the final political decision could be made as early as May. Options are currently being discussed: point-by-point coordination of contracts; manufacturers will be able to export their products only after obtaining individual approval from the state, as is actually happening now.
And then there is the issue of quotas. Allow the export of up to 50% of the volume of weapons ordered for Ukraine’s needs. At the same time, part of the proceeds must go to the state budget for purchases for the Armed Forces of Ukraine.
Finally, export duties. Free export is allowed, but with the mandatory payment of a 20% duty. These funds will flow into a separate fund, from which the purchase of weapons for the army will be financed.
The sale will have to go hand in hand with the management of the Ukrainian investment fund, which will be created under the mining agreement with the United States, as well as participation in Ukrainian investment projects, because the sale will have to have the approval of the United States.
It is also said that American investors will be the first to receive information about potential projects in the mining and infrastructure sector, they will consider them for up to three months and only in case of refusal other investors will be able to accept the project, but for six months the conditions cannot be more advantageous from a financial point of view than those offered to the Americans. The same applies to the purchase of products.
According to the Ukrainian publication, Dzerkalo Tyzhnia: “In general, cooperation will be like this: the Americans supply weapons (if they do). We, at the expense of potentially lost rent from the budget, create a fund (50% of all rent payments, license fees and amounts due to the Ukrainian government under production sharing agreements for licenses issued after the entry into force of the document and the so-called dormant licenses) and select investment projects for them. They enter them (or do not enter them), but for six months and no one else enters. For the first ten years, all profits received are reinvested in Ukraine (and these will be very small amounts, because these are new or “dormant” licenses, where neither exploration nor production has been carried out). After that, the money is divided and taken by the states from Ukraine without taxation,” the publication summarizes.
Graziella Giangiulio
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