Ukraine uncertain when it will receive benefits from $50 bln of frozen Russian assets
Iryna Mudra (RBC-Ukraine, Vitalii Nosach)
Now it is not clear how Ukraine can get a loan from the proceeds of frozen Russian assets for $50 billion. There is not enough political will to allocate funds, says Deputy Head of the Presidential Office, Iryna Mudra, at the Make Russia Pay conference, which focuses on the confiscation of Russian assets.
"Today, we don’t even have an estimated timeline, although G7 leaders promised in June that by the end of the year, Ukraine would receive part of this $50 billion. Right now, we do not understand, organizationally, technically, or legally, how this will happen, through which instruments, or under what conditions," said Mudra.
She adds that €1.4 billion from frozen Russian assets, which the European Union plans to allocate for military purchases for Ukraine, remains in the EU. These funds will be used for Ukraine's needs, but the country has not received them.
Mudra identified several factors hindering progress on the use of Russian assets for Ukraine’s benefit.
"There are concerns about the legal basis, economic concerns. But, in the end, having experience in communicating with them over the years, I am convinced that political will is today the main factor that prevents us from getting these 50 billion. Legal frameworks and safeguards against financial and economic shocks can be worked out when the political will exists, and they have already been created. What we lack today is political will," she added.
Loan for Ukraine
In June, G7 leaders agreed to provide Ukraine with a $50 billion loan, to be repaid using the proceeds from frozen Russian assets.
The EU also plans to extend a €35 billion loan to Ukraine, backed by future profits from immobilized assets of Russia's central bank, aimed at ensuring more predictable financial support for Ukraine in case of shifts in US policy.
