Tetyana Khutor, Head of the Institute of Legislative Ideas, in a commentary for Ukrainian Radio on the transfer of $50 billion of frozen Russian assets to Ukraine

After lengthy negotiations and approvals, the European Union and the United States have announced their readiness to provide Ukraine with a $50 billion loan secured by the proceeds of frozen Russian assets. According to preliminary information, the first tranches may be disbursed in early 2025.

According to Tetyana Khutor, head of the Institute for Legislative Ideas think tank, this step is ‘historic’ and strategic for supporting Ukraine. In an interview with Ukrainian Radio, she noted that it is important that these funds have the characteristics of a grant, not a loan. According to her, ‘Ukraine should have the priority right to decide what needs to use these funds for. It is important that these funds could be used to purchase weapons, in particular from Ukrainian manufacturers.’

Khutor emphasised that this assistance is only a ‘tactical’ step: ‘50 billion is a tactical story, because this money will help us to survive and spend it to some extent on defence and on supporting the country's vital activity next year.’  According to her, Ukraine should strive to recover the entire amount of frozen Russian assets, which currently stands at around $300 billion: ‘This is a goal that will significantly strengthen our economy and defence.’

The process of allocating funds has been delayed by political nuances in various EU and US countries. However, recent agreements may lead to a positive result by the end of this year, when a final decision on the mechanism for implementing the assistance programme is expected.

In her interview, the Head of the Institute of Legislative Ideas also highlighted key aspects of the aid:

• Providing a grant, not a loan: It is important for Ukraine that the funds do not create new debt obligations, which will allow it to focus on development rather than repayments.
• The right to self-determination: Ukraine should be able to decide where to allocate the funds, including for defence and reconstruction.
• The strategic goal is $300 billion: According to Khutor, this is the amount of frozen assets that can be used to significantly strengthen Ukraine in the future.

Thus, the planned $50 billion is a step towards a large financial support that will allow Ukraine to strengthen its economy and restore critical industries, including the military industry, which is necessary to ensure defence capability. 

For more information, please follow the link