Distributing Revenues for Ukraine's Reconstruction Fund

On 13 May 2025, the Verkhovna Rada adopted as a basis the Draft Law No. 13256 regarding amendments to the Budget Code of Ukraine on the implementation of the Agreement on the establishment of the US-Ukraine Investment Fund for Reconstruction.

The purpose of the Draft Law is to ensure the implementation of the international agreement between Ukraine and the United States on the establishment of the US-Ukraine Reconstruction Investment Fund, as well as to establish budgetary mechanisms for administering revenues related to the extraction of natural resources.

The Draft Law provides for a detailed regulation of the distribution of revenues from the use of subsoil, extraction of minerals and distribution of products, including those recognized as Natural Resource Relevant Assets under the Agreement. It establishes separate shares of such revenues to be credited to the state budget, local budgets, and directly to the Fund.

The distributing revenues

The Draft Law changes the mechanism for distributing revenues from rent payments and subsoil use licenses. In particular, 50% of these revenues will be directed to the Fund. Previously, these funds did not have a separate direction of allocation, which will allow to focus finances on the restoration of Ukraine’s infrastructure and economy

At the same time, the shares of other areas of enrollment are significantly reduced. For example, the State Budget General Fund will receive only 35% instead of 70%. Regional budgets will receive 12% instead of 25%. The budgets of territorial communities will be reduced from 5% to 3%, and the budgets of Kyiv and Sevastopol will be reduced from 25% to 12%. These changes allow for the redistribution of financial resources, directing them to post-war recovery through investments provided by international partners.

We will continue to closely monitor further developments in the status of this Draft Law and report on them in the future Legal News.