Analysis of the draft law:
Analysis of the draft Law of Ukraine on Amendments to the Budget Code regarding the implementation of the Agreement between the Government of Ukraine and the Government of the United States of America on the establishment of the American-Ukrainian Investment Fund for Reconstruction
Good day! Today we will review an important draft law that concerns amendments to the Budget Code of Ukraine, aimed at implementing the agreement between Ukraine and the United States on the establishment of the American-Ukrainian Investment Fund for Reconstruction.
Essence of the draft law
The draft law amends the Budget Code of Ukraine to provide a financial basis for the implementation of the agreement between Ukraine and the United States on the establishment of the American-Ukrainian Investment Fund for Reconstruction. It defines the procedure for distributing income from the use of natural resources involved in the fund’s investment projects. The main goal is to create a transparent and efficient mechanism for attracting and using funds for the reconstruction of Ukraine.
Structure and main provisions
The draft law consists of several sections that amend various articles of the Budget Code of Ukraine. In particular, the amendments relate to Articles 29, 30, 64, 66, 67, and 71 of the Code. Here are the main changes:
- Definition of terms: The definition of the term “Natural Resource Assets” is added for the purposes of the Code, referring to Appendix A to the Agreement between the Governments of Ukraine and the United States.
- Distribution of royalty payments: The percentages of royalty payments for the use of mineral resources of national importance and oil, natural gas, gas condensate, especially those defined as “Natural Resource Assets,” are revised.
- Allocation of funds: It is determined that part of the funds from the use of natural resources involved in investment projects is directed to pay contributions to the American-Ukrainian Investment Fund for Reconstruction.
- Distribution between budgets: New rules are established for the distribution of funds between the state and local budgets, in particular, for territories where subsurface areas used under the agreement are located.
Important provisions for stakeholders
The following aspects may be most important for various stakeholders:
- For legislators: Clear definition of mechanisms for the distribution of funds and their allocation for reconstruction, as well as ensuring transparency in the use of funds.
- For experts: Harmonization of terminology with international agreements and adaptation of budget legislation to new financial instruments.
- For business: Certainty of conditions for the use of natural resources and transparency of rules for payment of royalty payments.
- For citizens: Information on how funds from the use of natural resources will contribute to the reconstruction of the country and the development of regions.
I hope this analysis was helpful. If you have any further questions, please contact us!
Analysis of other documents:
Dear journalist!
Based on the provided documents, I can draw the following conclusions regarding the draft Law of Ukraine “On Amendments to the Budget Code of Ukraine regarding the implementation of the Agreement between the Government of Ukraine and the Government of the United States of America on the establishment of the American-Ukrainian Investment Fund for Reconstruction”:
Position of the authors of the documents
- The Cabinet of Ministers of Ukraine is the initiator of the draft law and, obviously, fully supports it, as it is aimed at fulfilling Ukraine’s international obligations.
- The Committee of the Verkhovna Rada of Ukraine on Budget Issues also supports the draft law, recommending the Verkhovna Rada to adopt it in the second reading and as a whole.
- The Committee of the Verkhovna Rada of Ukraine on Anti-Corruption Policy believes that the draft law complies with the requirements of anti-corruption legislation, which indicates its support from the point of view of integrity.
- The Main Department of Documentary Support of the аппарату (Office) of the Verkhovna Rada of Ukraine confirms that the text of the draft law is written in modern Ukrainian literary language and has no comments on the text of the draft law.
Main provisions and potential importance for different groups
- For legislators:
- The draft law provides for amendments to the Budget Code to ensure the implementation of the Agreement between Ukraine and the United States on the establishment of an investment fund for reconstruction.
- The amendments concern the redistribution of a part of royalty payments for the use of mineral resources and other revenues to the special fund of the state budget.
- It is important to take into account the comments of the Main Legal Department regarding the need to clarify the terminology and harmonize the norms with the requirements of legal certainty.
- For experts:
- It is necessary to pay attention to changes in the distribution of budget revenues and their impact on the financial system of Ukraine.
- It is important to assess how effective the use of a special fund will be for attracting investment in reconstruction.
- It is necessary to analyze the compliance of the provisions of the draft law with budgetary methodology and rules of law-making.
- For business:
- The draft law may affect the conditions for the use of mineral resources, especially for companies that extract mineral resources of national importance.
- It is important to understand which revenues from the use of natural resources will be directed to the investment fund.
- It is necessary to take into account possible changes in the proportions of royalty payments to the state and local budgets.
- For citizens:
- The implementation of the draft law may contribute to attracting investment in the reconstruction of infrastructure and the economy of Ukraine.
- It is important to monitor how the funds of the special fund are used and how transparent the decision-making process regarding investments is.
- Citizens should be interested in ensuring that amendments to the Budget Code do not lead to a reduction in funding for social programs and other important areas.
Key reservations of the Main Legal Department
- Uncertainty of terminology: The use of the term “Natural Resource Assets” with reference to Appendix A to the Agreement on the Reconstruction Fund may lead to ambiguous interpretation of norms and conflicts in legislation.
- Subject of regulation: The inclusion of provisions that do not belong to the subject of legal regulation of the Budget Code may be incorrect from a legal point of view.
- Entry into force: Unclear definition of the moment of entry into force of the law may create problems in its practical implementation.
In general, the draft law is important for ensuring the financing of the reconstruction of Ukraine, but requires careful revision, taking into account the comments of legal experts.
