Ukraine, EU sign greement on use of proceeds from frozen Russian assets

This was reported by the Ministry of Finance, Ukrinform saw.

"Finance Minister Serhii Marchenko signed an agreement on the establishment of the Ukraine Loan Cooperation Mechanism (ULCM), which will create a legal framework for servicing and repaying funds received by Ukraine, which may reach up to EUR 45 billion," the report says.

It is noted that the new mechanism will allow utilizing proceeds from frozen Russian sovereign assets to cover the principal amount of the loan, interest, and other costs related to loans raised from partners within the framework of the G7 ERA (Extraordinary Revenue Acceleration Loans for Ukraine) initiative.

The funds available through the ULCM will have a specific purpose and can be used exclusively for the repayment of the corresponding loans provided to Ukraine by creditors within the framework of the G7 ERA initiative.

As Ukrinform reported earlier, on December 4, Ukrainian Finance Minister Serhii Marchenko, NBU Governor Andriy Pyshnyi, and European Commission Vice President Valdis Dombrovskis signed a memorandum of understanding and a loan agreement between Ukraine and the European Union to attract up to EUR 35 billion in macro-financial assistance (MFA). These funds will also be provided under the new Ukraine Loan Cooperation Mechanism.

Photo: Ministry of Finance