The purpose of $50 billion of frozen Russian assets — Shmyhal
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Ukraine will receive $50 billion from Russia's frozen assets as an advance that will not have to be returned. The total amount of frozen Russian assets is about $300 billion.
Prime Minister Denys Shmyhal stated this at the 10th Kyiv International Economic Forum on Thursday, November 7, as Novyny.LIVE reports.
Purpose of $50 billion from Russia's frozen assets
According to Prime Minister Denys Shmyhal, the Ukrainian government has an "absolute understanding" of how to close the budget deficit in 2025. IMF and EU programs and $50 billion from Russia's frozen assets, which will become a kind of "safety cushion" for the coming years, will help in this.
"We are continuing the program with the IMF, with the EU, this is the Ukraine Facility plan. We have got one of the great financial victories by convincing partners to use frozen Russian assets for the benefit of Ukraine. The $50 billion that we will receive from the G7 countries, from the EU will be our reserve, a safety cushion for the coming years. This is how we planned it, this is how we agreed with the IMF, with our partners," Shmyhal said.
This amount, $50 billion, is planned to be received in the form of income. The funds were transferred to Ukraine as an advance in the form of a loan that Ukraine will not repay. That is, this loan will not affect the size of the state debt.
Denys Shmyhal also noted that thanks to external financing, Ukraine will not resort to emission financing of the budget and will have funds to finance the army and all priority budget expenditures.
Let us recall that Prime Minister Denys Shmyhal said that Ukraine is investing 750 billion hryvnias in the military-industrial complex. The main part of these funds will be allocated for concluding contracts with Ukrainian companies.
In addition, Denys Shmyhal spoke about the preparation of the power system for the winter. According to the Prime Minister, the situation is currently under control, all necessary repairs have been carried out and protection has been built.
