Expert in the field of international financial law Konstantin Kryvopust states that: “The government expects to receive the $50 billion promised by the G7 in June, which is critically needed for the 2025 budget, without any additional conditions in the form of reforms.”
The Ukrainian Government, judging from statement the prime minister Denis Shmyhal and the Minister of Finance Sergey Marchenkohas high hopes for providing Ukraine with the $50 billion promised by the “Big Seven” countries in June. These funds are needed to cover the need for 15 billion dollars for the state budget for 2025. Otherwise, a number of expenses that will require financing may be in question.
After the G7 countries agreed to allocate these funds to Ukraine Serhii Marchenko statedthat “the decision allows us to breathe, because 2025 looked uncertain without this decision.” However, Ukraine has not yet received these funds.
Prime Minister Denis Shmyhal at the forum on August 27, he noted that Ukraine should receive them no later than the end of 2024. At the same time, in relation to the provision of these 50 billion, no conditions should be put forward regarding the implementation of reforms, and they should be interest-free, not affect the increase in the state debt.
In turn, Politico informsthat the discussion of providing Ukraine with these 50 billion was suspended due to the growing chance of the US presidential election in Kamala Harris.
If first the perspective of the presidency Donald Trump prompted diplomats on both sides of the Atlantic to put aside differences to finalize the funding issue by the end of the year, now the prospect of victory Harris “somewhat removed the sharpness.” According to diplomats, Kamala Harris, if she becomes the President of the USA, is unlikely to reduce support for Ukraine. Thus, disagreements between the EU and the US regarding the regulation of the details of the allocation of funds to Ukraine are intensifying, Politico points out.
The vast majority of assets frozen after the Russian invasion of Ukraine in February 2022 are located in Europe. Therefore, Washington demands from the EU a guarantee that they will remain immobilized until Moscow pays post-war reparations to Ukraine. That way, the US won’t be on the hook for repaying the loan if the assets are unfrozen. However, it is difficult for the EU to comply with this requirement, as it requires unanimity and several European countries oppose it.
In addition, the US must involve Congress in any operation that puts taxpayer money at risk, which could drag the process past a year-end deadline.
