Trade Agreement Effective as May 23, 2025
With the assumed support of “the American people,” the United States government has entered into a trade agreement with Ukraine, effective May 23, 2025 and ending indefinitely. Execution of this Agreement will establish the United States-Ukraine Reconstruction Investment Fund, in the form of a Limited Partnership [Agreement, pg 2 Article II Par.1]. This agreement is based on the assumptions that (a) Ukraine has sovereignty over its “natural resources” and “territorial waters” and (b) the Ukrainian government will “take all steps to empower its agencies and instrumentalities to execute and implement this Agreement,” including but not limited to, legislative measures, and (c) the Ukrainian government will ensure that future legislation will not diminish the requirements of the Agreement, and if it is ever found to be so, this Agreement will prevail.
Furthermore, the United States Government acknowledges this Agreement extends to “ not only financial investment but also structural, institutional and technological transformation” [Agreement, pg 3 Article III, Par. 3]. The purposes of this Agreement are: 1. “To ensure that those States and other persons that have acted adversely to Ukraine in the conflict do not benefit from the reconstruction of Ukraine following a lasting peace,” (with Russia being aforementioned as the source of the conflict); and, for a partnership to be established between the United States and Ukraine that will allow for (2) increased investment in mining, energy and technology that will assist Ukraine in its defense against “Russia’s full scale invasion,” [pg 2 Article II, Par. 2&3].
The Partnership responsibilities of each party, as laid out in this Agreement, are as follows: (highlights only!)
UKRAINE
- All monies exchanged under the terms of this Agreement will be provided without tax penalty by the Ukraine government. [pg 4 Article IV, Par. 1]
- All monies exchanged under the terms of this Agreement will be free from conversion fees, when monies payments under this Agreement are requested to be converted from Ukraine’s national currency to Dollars. [pg 4 Article V, Par. 1]
- Before the United States makes good on any part of this Agreement, the Government of Ukraine is required to take an initial contribution to the United States “in the form of an irrevocable right to receive the Ukraine Agree Revenue.” [pg 6 Article VI, Par. 2]
- Once this Agreement has gone into affect, any new military assistance to Ukraine will be seen as a “capital contribution of the United States Partner,” and will effectively increase the considered contribution of the United States under this Agreement, with value of this contribution being assessed based on the provision of the military assistance. [pg 6, Article VI, Par. 5]
- Any governmental authority of Ukraine which is authorized to approve governmental contracts, must not make any agreement with a third party that would diminish the terms of this Agreement; any contract executed in regards to the construction or operation of “significant infrastructure relevant assets,” as defined within this Agreement, must include a clause allowing for the United States to receive “relevant investment information.” [pgs 6-8, Articles VII/VII, only highlights summarized]
UNITED STATES
- The United States government interprets Sections 871, 872, 881, and 882 of the IRS Code to make all monies exchanged under this Agreement free from taxable penalty because “only income of a foreign person from the United States sources, or income effectively connected to a United States trade or business is subject to United States federal income tax.” [pg 4 Article IV, Par. 2]
- No United States tariffs will be imposed for monies exchanged under this Agreement, with interpretation of this waiver pursuant to Section 252 of the Trade Expansion Act of 1962, and the International Emergency Economic Powers Act. [pg 4 Article IV, Par. 3]
*post image courtesy of CNN.com
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