Ukraine and the EU sign an agreement on the use of proceeds from frozen assets

Minister of Finance Sergii Marchenko has signed an agreement with the EU to establish the Ukraine Loan Cooperation Mechanism (ULCM), which will allow the proceeds of frozen russian assets to be used to repay loans of up to €45 billion under the G7 ERA initiative.

‘Minister of Finance Sergii Marchenko has signed an agreement on the launch of the Ukraine Loan Cooperation Mechanism (ULCM), which will create a legal framework for servicing and repayment of funds received by Ukraine, which may reach up to EUR 45 billion.’

It is noted that the new mechanism will allow the use of proceeds from russia's frozen sovereign assets to cover the principal, interest and other costs associated with loans raised from partners under the G7 ERA (Extraordinary Revenue Acceleration Loans for Ukraine) initiative.

Funds available through the ULCM will be earmarked and may be used exclusively for the repayment of eligible loans provided to Ukraine by lenders under the G7 ERA initiative.

Source: Ministry of Finance of Ukraine