Ukraine may raise loan secured by frozen Russian assets

Andrii Pyshnyi, Governor of the National Bank of Ukraine (NBU), has confirmed that there are several ways to use frozen Russian assets to assist Ukraine, one of which involves a loan secured by assets or profits from them.

Source: Pyshnyi in an interview with Voice of America's Ukrainian Service

Details: NBU Governor Pyshnyi noted that one of the options for using frozen Russian assets in the West involves obtaining a loan secured by these assets or the profits derived from them.

"We at the NBU remain committed to the consolidated response by the international community, the non-violation of international law, which leading law schools have defined as the concept of countermeasures, and this opens up the possibility of access to the immobilised assets themselves.

At the same time, we see that there is now a renewed discussion around another option, debt-based as well when these immobilised assets are considered as collateral for a loan. However, there are also other scenarios envisaging that Ukraine should be able to raise a loan secured by the future revenues generated by these immobilised assets."

Furthermore, Pyshnyi stated that each option requires political and legal will. He noted that, first of all, political will is necessary to open access to Russian assets for Ukraine, while legal grounds for engaging Russian assets already exist.

Background:

• Over half of Ukraine's major banks can continue to operate even in the face of power outages caused by Russian bombardments.
• The Ukrainian government is adamant that it will receive the necessary external financial support to cover the budget deficit and keep the economy running this year.

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