Income from immobilized Russian assets can be used including for military purposes - MP

Income from immobilized Russian assets can be used including for military purposes - MP

Ukraine will be able to use interest accrued from frozen Russian assets in the amount of $50 billion for covering budget expenditures, humanitarian and military needs.

That’s according to the Chairman of the Parliament’s finance committee, Yaroslav Zhelezniak, who reported the news via Telegram, Ukrinform reports.

"The plan will be named ‘Extraordinary Revenue Acceleration Loans for Ukraine’, or simply ERA. This money will not come from a single source, but through different programs (that is, as I understand, it is partly the World Bank, partly the EU, and other sources). Moreover, since different countries will attract money and then transfer it to Ukraine, the purpose of such a tranche will be different: it will include humanitarian aid, assistance to the economy and our war effort," the report reads.

Read also: President: New package of US assistance will allow replacing brigades currently on battlefield

According to Zhelezniak, the agreement must be approved by the majority of EU members, and then all creditors, intermediaries (such as the World Bank), and Ukraine must sign the ERA. The rhythm of the tranches will depend on how Ukraine selects them and designates the needs.

"For the time being, the EU should deliver half of it, and the USA will add whatever else is needed," Zhelezniak noted.

He emphasized the importance of Ukraine being able to utilize the money for military needs, as well as budgetary funding, humanitarian goals, and reconstruction.

Read also: Energy Ministry sets up Group for coordination of international aid for prompt restoration of generation

As reported earlier, the G7 nations will provide Ukraine with another $50 billion by the end of 2024 from the income off frozen Russian assets. This is an American loan, but it can be supplemented with European money or national contributions.

This loan to Ukraine is set to be repaid at the expense of revenues from Russian assets immobilized in the European Union.

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