Ukraine signs agreement with EU on using profits from frozen Russian assets
Ukraine has signed an agreement with the EU to establish the Ukraine Loan Cooperation Mechanism (ULCM), which will enable the use of income from frozen Russian assets to repay loans of up to €45 billion under the G7 ERA initiative.
Source: Ukrainian Finance Ministry press service
Quote: "Finance Minister Serhii Marchenko signed the agreement to create the ULCM, which provides a legal framework for servicing and repaying funds received by Ukraine, potentially up to €45 billion."
The new mechanism will allow the use of revenues from frozen Russian sovereign assets to cover the principal amount, interest and other expenses associated with loans provided under the G7 ERA (Extraordinary Revenue Acceleration Loans for Ukraine) initiative.
Funds available through the ULCM will be specifically allocated and can only be used to repay corresponding loans granted to Ukraine by creditors within the G7 ERA initiative.
Background: Finance Minister Serhii Marchenko recently signed an agreement with the European Union for macro-financial assistance to Ukraine amounting to up to €35 billion as part of the G7 initiative.
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