Ukraine's international partners are considering several plans to cover the financing needs of our state budget for next year. One of the ideas is a new mechanism, the so-called reparations loan, under which russian frozen assets can actually be transferred to Ukraine.
This was stated by Roksolana Pidlasa, MP and Chair of the Parliamentary Committee on Budget.
"Plan A" was proposed by the European Commission, and the President of the European Commission, Ursula von der Leyen, has publicly stated this. A new mechanism is being considered, the so-called reparations loan. The idea is that russian frozen assets can actually be transferred to Ukraine, and securities that represent the right to claim these russian assets can remain in the Euroclear depository. And only if russia pays full reparations to Ukraine after the war is over," the politician said.
According to her, this is a very convenient mechanism for Ukraine, because de facto we will be able to cover the needs of the state budget with frozen russian money, but we do not have to return it. The amount of the reparations loan could reach up to 130 billion euros.
The MP added that the partners are also considering another option for assistance - the extension of the mechanism that is in place this year.
"The G7 countries and the EU have provided us with a non-repayable loan of $50 billion. For us, it is non-refundable, meaning that Ukraine will not have to pay it back. The partners are compensating themselves for this loan with the proceeds from the russian frozen assets. In other words, the Euroclear depository carries out investment operations with frozen russian assets, receives about 2-3 billion euros of profit annually and transfers it to those countries that provided the loan to Ukraine," the MP explained.