Ukraine may not return $50bn if it does not receive reparations from russia

The amendments to the Budget Code introduce a new concept in the budgetary sphere - ‘contingent debt obligations’.

According to the law, the Debt Agency, which was previously the Ministry of Finance, will carry out transactions with contingent liabilities under agreements with the EU, foreign countries, and IFIs, the repayment of which will be made not from the state budget, but in particular from the frozen assets of the russian federation.

Roksolana Pidlasa, the head of the Budget Committee, explained that the initiative concerns $50 billion in non-repayable financial assistance from the G7 and the EU.

This means that the loan from the G7, which will be repaid with frozen russian assets, will not be accounted for as Ukraine's public debt. Also, Ukraine will not repay this loan unless it receives reparations from russia.

The explanatory note to the draft law states that the adoption of these amendments at the legislative level will give the right to attract credit funds to the state budget to finance priority budget expenditures. Without these amendments, Ukrainian Finance Minister Sergiy Marchenko will not have the right to sign agreements to receive $50 billion.

Source: Suspilne