U.S. & UKRAINE SIGN OPIC MEMORANDUM OF UNDERSTANDING, THE FIRST STEP
Signing of the Memorandum of Understanding (MOU) between the Government of Ukraine and the Government of the United States of America on Overseas Private Investment Corporation activities in Ukraine
Ministry of Economy of Ukraine, Kyiv, Ukraine, Monday, November 10, 2008
KYIV - A Memorandum of Understanding [MOU] between the Government of Ukraine and the Government of the United States of America, which makes an important foundation for the Overseas Private Investment Corporation (OPIC) to resume its work in Ukraine, has been signed on November 10, 2008.
On behalf of the Government of Ukraine the Memorandum has been signed by Bohdan Danylyshyn, the Minister of Economy of Ukraine, and on behalf of U.S. Government the MOU has been signed by the Ambassador of the United States of America to Ukraine William Taylor.
CONSIDERED TO BE THE FIRST STEP
The signing of the MOU between the two governments is considered to be the first step in establishing practical mechanisms of dispute settlement with the Overseas Private Investment Corporation.
Ukraine has a very strong interest in the further attraction of private American investors that can insure their risks with OPIC, stated the Minister of Economy of Ukraine.
At the same time, Ambassador William Taylor underlined that signing of the MOU is a very important step for the return of OPIC to Ukraine and an important sign that the United States of America believes in Ukraine and its economy.
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LATEST AVAILABLE DRAFT OF THE MOU,
May not be the final copy that was signed.
MEMORANDUM OF UNDERSTANDING
between the Government of Ukraine and the Government of the United States of America
The Government of Ukraine and the Government of the United States of America (hereinafter “the Parties”),
Confirming their intention to cooperate with the aim of developing relations between the two countries in the area of investment;
Desiring to ensure favorable conditions for investment including the principles of equality and mutual benefits and the provisions of the Treaty Between the United States of America and Ukraine Concerning the Encouragement and Reciprocal Protection of Investment, with Annex, and Related Exchange of Letters, signed at Washington March 4, 1994; and
With regard to the situation which has developed in connection with the investment of Alliant Techsystems Inc. to ensure operation of closed- end Joint Stock Company Alliant Kyiv;
Achieved the following understanding:
Section 1
The Parties welcome and admit the importance of the agreements that are envisioned to be concluded between the U.S. Overseas Private Investment Corporation (hereinafter: OPIC) and an economic entity (hereinafter– the Enterprise), selected by the Government of Ukraine with OPIC’s approval, as described in Section 2 of this Memorandum of Understanding, and, in accordance with their respective national laws, intend to facilitate the implementation of these agreements.
Section 2
The Parties take into account the agreements (hereinafter – Agreements) regarding resolution of the situation involving the investments of Alliant Techsystems Inc. into Alliant Kyiv. These Agreements envisage that:
(i) OPIC would transfer to the Enterprise the rights assigned by Alliant Techsystems Inc. to OPIC in connection with the payment made by the latter (hereinafter – the Rights). The transfer of rights would be made in accordance with the legislation of Ukraine.
(ii) The Enterprise, in its turn, would transfer money in favor of OPIC in the amounts and during the time period specified by the Agreements.
The Parties support OPIC’s willingness to consider the full and proper performance by the Enterprise of the payment and due implementation of other obligations under the provisions of the Agreements, as mentioned in the paragraphs (i) and (ii) of this Section as final resolution of the situation that emerged in connection with the investments of Alliant Techsystems Inc. in Alliant Kyiv.
Section 3
The U.S. Government confirms that OPIC will resume support of investment projects implemented in Ukraine by U.S. private investors, upon satisfaction of the conditions outlined in the Agreements for the resumption of such support.
Section 4
The Parties acknowledge that the provisions of this Memorandum of Understanding do not constitute and should not be considered as constituting any admission on behalf of the Ukrainian Side of any commitment, debt, complaint or other claim of any company, including those involved in the resolution of the situation with regard to the investments of the Alliant Techsystems Inc.
Section 5
Each Side will endeavor to resolve any differences regarding the interpretation and/or application of provisions of this Memorandum of Understanding by holding consultations between the Parties.
Section 6
The Memorandum of Understanding enters into force upon signature by authorized representatives of the Parties.
Modifications and additions that are integral part of this Memorandum of Understanding can be incorporated into it upon mutual written consent of the Parties.
Signed in duplicate at Kyiv on November 10, 2008, in the Ukrainian and English languages. Both copies have equal value.
For the Government of Ukraine: For the Government of the United States of America:
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LINKS: http://www.mfa.gov.ua/usa/en
http://www.me.gov.ua/control/uk/publish/article?art_id=123973&cat_id=38461
http://www.kmu.gov.ua/control/uk/publish/article;jsessionid=21D3