Ukraine may not repay $50 billion G7 loan if it does not receive reparations from Russia: Verkhovna Rada passes law

The Verkhovna Rada has approved a bill that opens up the possibility of receiving $50 billion from the G-7 without mandatory repayment.

This was announced by MP Yaroslav Zhelezniak, Censor.NET reports.

The Verkhovna Rada of Ukraine has adopted draft law No. 12232, which allows the Ministry of Finance to perform the functions of the Debt Agency and enter into agreements on contingent liabilities. This opens up the possibility of receiving a $50 billion loan from the Group of Seven (G-7) countries, the repayment of which will depend on reparations from the Russian Federation.

Details of the law

The draft law provides for:

• The Debt Agency or the Ministry of Finance are authorized to enter into transactions with contingent liabilities in the framework of cooperation with the EU, international financial organizations (IFIs) or foreign countries;
• Refunds under such agreements will not be made from the state budget of Ukraine, but through alternative sources, including frozen assets of the Russian Federation.

"To put it simply, it's about $50 billion from the G-7, and Ukraine will not repay this loan unless it receives reparations from Russia. And the money will not be accounted for as public debt," Zhelezniak said.

Earlier, the G-7 leaders agreed on an emergency revenue acceleration mechanism that will provide $50 billion in loans to Ukraine. It is expected that these funds will be serviced at the expense of immobilized Russian assets.