According to the deputy head of the Polish Ministry of Finance, Pawel Karbovnyk, the next president of the United States, the Republican Donald Trump, may withdraw from the G7 agreement to provide Ukraine with a $50 billion loan at the expense of profits from the frozen assets of the Russian Federation.
Points of attention
- The article discusses the possibility of the USA, under the leadership of Donald Trump, withdrawing from the G7 agreement to provide Ukraine with a $50 billion loan, raising concerns about risks and potential consequences.
- The agreement between Ukraine and the EU involves utilizing profits from frozen assets of the Russian Federation to cover funds, establishing a legal framework for servicing and repaying funds received by Ukraine up to 45 billion euros.
- The credit cooperation mechanism with the EU allows for the use of revenues from frozen assets to repay loans granted to Ukraine within the framework of the G7 initiative, aiming to increase revenues to the budget of Ukraine.
- The article highlights statements from key figures like Pawel Karbovnyk and Mike Johnson regarding aid to Ukraine and the actions needed in case of the USA withdrawing from the G7 agreement on the $50 billion loan.
- Efforts are being made by the EU to ensure that the $50 billion dollars are provided to Ukraine regardless of potential US withdrawal, with the final amount of the EU loan to be determined by the end of the year.
What is known about the risk of Trump withdrawing the United States from the G7 agreement regarding a $50 billion loan to Ukraine
Journalists of the publication pay attention to the statement of the speaker of the US House of Representatives, Mike Johnson, after the rejection of the request of representatives of the administration of the current president Joe Biden to allocate an additional $24 billion in aid to Ukraine.
We have a new president-elect and we're going to wait and take direction from the new commander-in-chief on all of this, so I don't expect any funding for Ukraine right now," Johnson said.
Karbovnyk, for his part, called on Trump to announce his own intentions regarding further aid to Ukraine, so that the EU would have time to develop an action plan in case the US refuses further aid to Ukraine.
We, as the EU, will do everything possible to ensure that 50 billion dollars will go to Ukraine regardless of Trump, Karbovnyk assured.
According to Karbovnik, the final amount of the EU loan will be determined by the end of the year.
What is known about the agreement between Ukraine and the EU regarding the use of profits from the frozen assets of the Russian Federation
According to the representatives of the Ministry of Finance, the head of the department, Serhiy Marchenko, signed an agreement with the EU on the start of the implementation of the credit cooperation mechanism for Ukraine.
Representatives of the agency emphasize that this mechanism establishes a legal framework for servicing and repaying funds received by Ukraine, which can reach up to 45 billion euros.
The mechanism will allow the use of revenues from the frozen sovereign assets of the Russian Federation to cover the principal amount of the loan raised from partners within the framework of the G7 ERA initiative, as well as interest and any other costs related to the loan, the message emphasizes.
The funds available through the ULCM can only be used to repay the corresponding loans granted to Ukraine by creditors within the framework of the G7 initiative on additional credits to increase revenues to the budget of Ukraine.
