Zelenskyy signs law on terms for securing $50 billion from Russian assets
Photo: President of Ukraine Volodymyr Zelenskyy (Vitalii Nosach/RBC-Ukraine)
President Volodymyr Zelenskyy has signed a law defining the conditions under which Ukraine will receive a $50 billion loan from the G7 countries. Ukraine will repay this loan only if it receives reparations from Russia, RBC-Ukraine reports, citing draft law No. 12232.
The law introduces a new concept - "conditional debt obligations". The introduction of the contingent liability instrument concerns the limited rights of creditors to demand the return of such obligations by the state.
The document establishes that the money from the $50 billion loan will not be accounted for as Ukraine's state debt. Ukraine will not repay this loan until it secures reparations from Russia.
Loan for Russian assets
In October of this year, the European Union, together with the G7 countries, decided to collectively provide loans of up to €45 billion (approximately $50 billion) to support Ukraine's urgent budgetary, military, and reconstruction needs.
Such loans will be serviced and repaid using future income from the Russian Central Bank's frozen assets.
US Secretary of State Anthony Blinken said the first tranches of the $50 billion loan will be transferred to Ukraine in the coming weeks.
According to António Costa, President of the European Council, Ukraine will receive €1.5 billion monthly from the EU starting January 2025. The EU will receive these funds from the use of frozen Russian assets, which can also "be used for military purposes."
