Ukraine will receive up to €35 billion in credit, which will be repaid with the frozen assets of Russia. The Ministry of Finance signed it

Ukraine will receive a loan of up to €35 billion, which will be repaid with the proceeds of the frozen assets of the Russian Federation. The relevant document was signed by all parties.

This was reported by the press service of the Ministry of Finance of Ukraine.

The Minister of Finance of Ukraine Serhiy Marchenko signed the Memorandum of Understanding and the Credit Agreement between Ukraine and the European Union. Among the signatories of the document is the head of the National Bank of Ukraine Andriy Pyshnyi, and from the EC, the vice president of the European Commission Valdis Dombrovskis.

The funds are part of a $50 billion (€45 billion) loan from the G7.

The final volume of the loan will be determined after each of the countries and parties has finally approved the amount of its contribution. Initially, there will be $20 billion from the USA, and €18 billion from the EU.

Prior to that, Ukrainian Prime Minister Denys Shmyhal and Vice President of the European Commission Valdis Dombrovskis signed an agreement on receiving €18.1 billion from the EU.

Ukraine will receive funds through the Ukraine Loan Cooperation Mechanism (ULCM), which will provide an irreversible form of macro-financial assistance.

The money will be directed to macro-financial stability, state-owned enterprises, public administration, energy, the rule of law, the fight against corruption and the defense industry.

• On December 3, the Verkhovna Rada as a whole approved draft law No. 12232 on amendments to the Budget Code of Ukraine. This means that the $50 billion loan from the G7, which will be repaid with frozen Russian assets, will not be counted as Ukraineʼs public debt. Also, Ukraine will not return this loan if it does not receive reparations from Russia.
• The explanatory note to the draft law states that the adoption of these changes at the legislative level will give the right to attract credit funds to the state budget to finance priority budget expenditures. Without these changes, the Minister of Finance of Ukraine Serhiy Marchenko had no right to sign the agreement on receiving $50 billion.

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