The Verkhovna Rada supported draft law No. 12232 on irreversible financial aid in the amount of $50 billion from the G7 countries.
Points of attention
- The Verkhovna Rada supported a $50 billion loan from G7 countries for Ukraine, with conditions specifying non-repayment if Russia fails to pay reparations for armed aggression.
- The loan structure and guarantees were crucial factors for G7 partners to grant financial aid to Ukraine, with the newly introduced term 'contingent debt obligations' defining the loan's nature.
- Amendments to the Budget Code were necessary to avert serious budget implementation issues in 2025 and to allow for the receipt of the $50 billion loan in irreversible financial aid.
- The agreement for the loan involves contributions from various G7 countries, with the USA providing $20 billion, EU countries offering 35 billion euros, and Great Britain contributing $3 billion, among others.
- If Russia fails to pay reparations for criminal armed aggression, crimes, and destruction on Ukrainian territories, Ukraine will not have to repay the $50 billion loan from G7, and the money will not be counted as state debt.
Will Ukraine have to repay the G7 loan of $50 billion?
If it is simpler, then it is about 50 billion dollars from the G7, that Ukraine will not return this loan if it does not receive reparations from Russia. And the money will not be counted as state debt, — explained People's Deputy Yaroslav Zhelezniak.
The bill was supported by 271 deputies. It also created a new term in the budget sphere — "Contingent debt obligations", which is what these 50 billion dollars are.
The conditions provide that Ukraine will not return this loan until and if Russia refuses to pay reparations in full for criminal armed aggression, crimes and destruction on Ukrainian territories.
If these changes had not been made to the Budget Code, Finance Minister Serhiy Marchenko would not have been able to sign an agreement that would allow receiving 50 billion in irreversible financial aid. The latter could lead to catastrophic consequences for the implementation of the budget in 2025.
What is known about the loan to Ukraine from the G7
The G7 partner countries finally approved the issuance of a loan to Ukraine in the amount of $50 billion at the expense of profits from the frozen assets of the Russian Federation.
The agreement was approved after the US and partners resolved problematic issues related to the structure of such a loan and guarantees for its repayment.
According to the agreement reached, Ukraine will receive $20 billion in credit funds from the United States. EU countries should allocate another 35 billion euros to Ukraine.
3 billion dollars is expected from Great Britain. In addition, part of the funds should be provided by Canada and Japan.
